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Financialstatementpreparation2 100218110908 Phpapp02 (2)
Financialstatementpreparation2 100218110908 Phpapp02 (2)
Financialstatementpreparation2 100218110908 Phpapp02 (2)
Preparation: A Tutorial
Contributed capital
+ Retained earnings
Total stockholders’ equity
Balance Sheet
Contributed capital is the amount of
cash (or other assets) provided by the
shareholders.
Balance Sheet
Contributed capital is the amount of
cash (or other assets) provided by the
shareholders.
Current assets
+ Non-current assets
Total assets
Current liabilities
+ Long-term liabilities
+ Stockholders’ equity
Total liabilities and
stockholders’ equity
Balance Sheet
The Balance Sheet must be prepared
after the Statement of Retained
Earnings in order to have calculated the
ending balance of Retained Earnings.
Order of Preparation
Income
Income
Statement
Statement
Statement
Statementof
ofRetained
Retained
Earnings
Earnings Balance
BalanceSheet
Sheet
Net Beginning
BeginningRetained
Retained
Netincome
income Earnings
Earnings
++ Net
Netincome
income
–– Dividends
Dividends
Ending
Endingretained
retainedearnings
earnings Ending
EndingBalance
Balance
Retained
Retained
Earnings
Earnings
Review
Current assets
+ Non-current assets
Total assets
Current liabilities
+ Long-term liabilities
+ Stockholders’ equity
Total liabilities and
stockholders’ equity
Balance Sheet
Current Assets: Current Liabilities: