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A balance sheet is divided into two parts. The left side of the sheet shows the company's assets, or what a company uses to operate the business. The right side of the sheet shows the liabilities and equity. This includes money that is owed to a bank and the money originally invested. After the calculations have been completed, the left side should equal the right side of the sheet. In other words, assets equal liability plus equity.

Directions
Create a balance sheet with the following information. Include formulas to calculate the totals, and make formatting changes to make it easy to read. Save and print.

Balance Sheet for Flowers Galore
September 1, 2008
Assets
Cash 6,414
Receivables 2,662
Inventory 3,191
Prepaid expenses 2,557
Total Current Assets Liabilities and Equities
Liabilities
Bank loan 31,500
Accounts payable 2000

Total Liabilities
Property and Equipment
Land 16,643
Buildings 56,163
Equipment 2,750
Total Property and Equipment Owner's Equity
Capital 32,607
Retained earnings 24,273

Total Equity
Total Assets Total Liability and Equity

1 answer

Below is a structured balance sheet for "Flowers Galore" based on the provided information. For clarity and ease of understanding, I will use a sample format that you can use to create your balance sheet in a spreadsheet application like Microsoft Excel or Google Sheets.

Balance Sheet for Flowers Galore

September 1, 2008

| Assets | Amount ($) | |-----------------------------------|------------| | Cash | 6,414 | | Receivables | 2,662 | | Inventory | 3,191 | | Prepaid Expenses | 2,557 | | Total Current Assets | 14,824 | | | | | Liabilities | | | Bank Loan | 31,500 | | Accounts Payable | 2,000 | | Total Liabilities | 33,500 | | | | | Property and Equipment | | | Land | 16,643 | | Buildings | 56,163 | | Equipment | 2,750 | | Total Property and Equipment | 75,556 | | | | | Owner's Equity | | | Capital | 32,607 | | Retained Earnings | 24,273 | | Total Equity | 56,880 | | | | | Total Assets | 70,400 | | | | | Total Liabilities and Equity | 70,400 |

Calculations / Formulas

  1. Total Current Assets: Cash + Receivables + Inventory + Prepaid Expenses

    • Formula: =SUM(B2:B5) which results in 14,824.

  2. Total Liabilities: Bank Loan + Accounts Payable

    • Formula: =SUM(B9:B10) which results in 33,500.

  3. Total Property and Equipment: Land + Buildings + Equipment

    • Formula: =SUM(B12:B14) which results in 75,556.

  4. Total Equity: Capital + Retained Earnings

    • Formula: =SUM(B17:B18) which results in 56,880.

  5. Total Assets: Total Current Assets + Total Property and Equipment

    • Formula: =B6 + B15 which results in 70,400.

  6. Total Liabilities and Equity: Total Liabilities + Total Equity

    • Formula: =B11 + B19 which results in 70,400.

Formatting Tips

  • Use bold font for headers and total rows to distinguish them clearly.
  • Align numbers to the right for better readability.
  • You can use borders to separate the sections for a cleaner look.

Final Steps

  1. Input this data into a spreadsheet application.
  2. Apply the formulas as specified.
  3. Format the sheet for clarity.
  4. Save the document and print it when ready.

This balance sheet format will help ensure that the left side (Assets) equals the right side (Liabilities + Equity), which is a fundamental principle of accounting.