Current Assets – equal to cash or will be Cash – money that is readily available Allowance for bad debts

converted into cash within a year A/R - Notes receivable

Inventory Income taxes payable
Marketable securities Bills payable
Prepaid supplies Bank account overdrafts
Prepaid rent Accrued expenses
Prepaid insurance Short terms

Long term liabilities:

Fixed or Non-current Assets – will not
Bonds payable
be converted into cash within a year
Long-term notes payable
Land Deferred tax liabilities
Building Mortgage payable
Property, plant, and equipment (PP&E) Capital leases
Vehicles Equity
Furniture Common stock
Machinery Preferred stock
Patents Contributed surplus
Trademark Additional Paid-in capital
Accumulated depreciation Retained earnings
Other comprehensive income

Shareholders’ Equity=Total Assets−Total 
Liabilities

LIABILITIES
current liabilities:
Accounts payable
Interest payable

Merchandise sale $24,900

Mike’s Guitar Shop, Inc. - Cost of Goods Sold 11,200
Income Statement Music Lesson Income 4,000
For the year ended Dec. 31, 2017 Total Revenue 17,700 100%
 Taxes Payable 3,000.00
Depreciation expense 2,000 Unearned Revenue 1.500.00
Wage expense 750 Total Current Liabilities 24,500.00
Rent expense 600
Supplies expense 500 Long term liabilities
Interest expense 500 Notes Payable(due 5/30/22) 25,000.00
Utilities expense 400 Total Long-term liabilities 25,000.00
4,750 27%
$12,950 73% Total Liabilities 49,500.00

Equity
Owners’ Capital 50,000.00
Retained earnings 125,500.00
Sample Company Name Total Equity 175,500.00
Balance Sheet
As December 31,2019 Total Liabilities and equity $ 225,000.00

Assets
Current assets
Cash $50,000.00
Accounts receivable 15,000.00
Inventory 30,000.00
Total Current assets 95,000.00

Non-current assets
Property, Plant and Equipment 150,000.00
- Accumulated Depreciation 20,000.00
Total PPE 130,000.00

Total assets 225,000.00

Liabilities & Equity

Current Liabilities
Accounts Payable $20,000.00