In Accounting, An Itemized Statement

Of What One Owns, What One Owes,

and What One Is Worth Is Called A:

The First Step In Setting Up Records Is

To Find Out:
1. What One Owns
2. What One Owes
3. What One Is Worth

Balance Sheet Reports What A Business

Owns-Assets
Owes-Liabilities
Worth-Owners
Equity

(Name of Business) Navarros Car Wash

(Name of Form) Balance Sheet
(Date) June 30, 2007
Navarros Car Wash
Balance Sheet
June 30, 2007

Navarros Car Wash

Balance Sheet
June 30, 2006

Three Sections of a Balance Sheet

Assets
Liabilities
Owners Equity

Assets-(lst Section)
Things You Own
Examples:
Supplies
Cash
Equipment

Navarros Car Wash

Balance Sheet
June 30, 2006
Assets
Cash On Hand
Equipment
Supplies
Total Assets

Things A Business Owes

-Accounts Payable-Sears, Inc.
-Accounts Payable-IBM Company

Navarros Car Wash

Balance Sheet
June 30, 2006
Assets
Cash
Equipment
Supplies
Total Assets
Liabilities
Accounts Pay.-IBM
Accounts Pay./Sears,
Inc.
Total Liabilities

What A Business Is Worth

-Jose L. Navarro, Capital
-Jose L. Navarro, Withdrawals

The Worth Of A Business

-Joe Navarro, Capital
-Joe Navarro, Withdrawals

Navarros Car Wash

Balance Sheet
June 30, 2006
Assets
Cash
Equipment
Supplies
Total Assets
Liabilities
Dell Computers
Accounts Pay./TG
Supplies
Total Liabilities
Owners Equity
JL Navarro, Capital

Jon Clark, For Example, Owns The Following:

Cash On Hand
Equipment

$ 5,500
25,000

Supplies

2,000

Office Equipment

5,000

Office Supplies

1,000

Total Amount Owned $38,500

Jon Clark Owes The Following:

Owed To TG Supply

1,000

Owed To Max
Furniture
Total Amount Owed

400
$ 1,400

The Accounting Equation

Assets = Liabilities + Owners Equity

$38,500 = $1,400 + $37,100

Here Is The
Process:
Jon Clark Owns

$38,500

Jon Clark Owes

1,400

Jon Clark Is Worth

$37,100

By Subtracting What Jon Clark Owes

($1,400) From What He Owns
($38,500) We Find What He Is Worth.

Summary
Balance Sheet Reports:
What A Business Owns-Assets
What A Business Owes-Liabilities
What A Business is Worth-Owners Equity