Sample Balance Sheet, Part 1

Sample Balance Sheet, Part 1

The common practice in the presentation of the balance sheet is in the order of liquidity. Hence, the list of assets is arranged as current assets, investments, property, plant and equipment, intangibles and other assets, in this order. On the other hand, the presentation of liabilities starts with current liabilities, long-term debts, other long-term liabilities, deferred revenues, capital stock, additional paid-in capital, retained earnings and appraised capital.

Hence, a “report form” balance sheet will look like this in terms of presentation:

Xandra Company

Balance Sheet

December 31, 2008

ASSETS

Current Assets:

Cash                                                    $XXX

Marketable Securities                            XXX

Accounts Receivable                             XXX

Notes Receivable                                  XXX

Merchandise Inventory                          XXX

Prepaid Items                                        XXX

Office and Store Supplies                     XXX

Total Current Assets $XXX

Property, Plant and Equipment: (net of their respective depreciation)

Transportation                                     $XXX

Store                                                     XXX

Building                                                 XXX

Land                                                      XXX

Total Property,

Plant and Equipment XXX

TOTAL ASSETS $XXX

LIABILITIES AND OWNER'S EQUITY

Current liabilities:

Accounts Payable                                $XXX

Notes Payable- Trade                            XXX

Accrued Expenses/Other payables        XXX

Total current Liabilities $XXX

Long-term Liabilities:

Bank Loans                                           XXX

Mortgage Liabilities                               XXX

Total Long-term liabilities XXX

TOTAL LIABILITIES $XXX

Owner’s Equity:

Xandra, Capital                                     XXX

TOTAL LIABILITIES AND

OWNER’S EQUITY $XXX

The “report form” is included in the customary or conventional form of balance sheet presentation. The other type is the account form where the assets are placed on the left side while the liabilities including capital are on the right portion of the statement.

As presented in the above example, the arrangement of assets, liabilities and owners equity is in the downward sequence.