Instructions for a Classified Balance Sheet

MJC Revised 1-2014 1

Love Thy Pet Inc,. Balance Sheet

December 31, 2010

Assets

Current Assets:

Cash $X,XXX

Notes Receibable X,XXX

Interest Receivable X,XXX

Pet Supplies X,XXX

Prepaid Insurance X,XXX

Prepaid Rent X,XXX

Total Current Assets $XX,XXX

Long-Term Investments:

Investment in stock of Intel Corp. X,XXX

Investment in real estate X,XXX X,XXX

Property, Plant, and Equipment:

Land XX,XXX

Building $XX,XXX

Accumulated Depreciation-Building X,XXX XX,XXX

Pet Store Equipment XX,XXX

Accumulated Depreciation-Pet Store Equipment X,XXX XX,XXX

Office Equipment XX,XXX

Accumulated Depreciation-Office Equipment X,XXX XX,XXX XX,XXX

Intangible Assets:

Trademark X,XXX

Total Assets $XX,XXX

Liabilities and Stockholders’ Equity

Current Liabilities:

Notes Payable Current Portion $XX,XXX

Accounts Payable XX,XXX

Salaries Payable XX,XXX

Unearned Sales Revenues X,XXX

Total Current Liabilities $XX,XXX

Long-Term Liabilities:

Mortgage Payable XX,XXX

Notes Payable long-term portion XX,XXX

Total Long-Term Liabilities XX,XXX

Total Liabilities XX,XXX

Stockholders’ Equity:

Common Stock XX,XXX

Retained Earnings XX,XXX

Total Stockholders’ Equity XX,XXX

Total Liabilities and Stockholders’ Equity $XX,XXX

Instructions for a Classified Balance Sheet

MJC Revised 1-2014 2

Contents

Asset Section of the Classified Balance Sheet: ........................................................................................................... 3

Liabilities Section of the Classified Balance Sheet: .................................................................................................. 4

Stockholders’ Equity Section of the Classified Balance Sheet: ............................................................................. 5

Final Note............................................................................................................................................................................... 5

For a presentation on the topic of “The Classified Balance Sheet” go to this web-

link:

http://prezi.com/w4r3txctu4ef/balance-sheet-organization/

Instructions for a Classified Balance Sheet

MJC Revised 1-2014 3

Step-by-Step Instructions

Start with the three-line header, which includes first the name of the corporation, second the title

of the statement, and third the end date for the fiscal period in which the statement is being

prepared.

Asset Section of the Classified Balance Sheet:

1. On the first line of the body of the statement in the center of far left hand columns place

the title “Assets.” No amount is required since this is only a title.

2. On the second line of the body of the statement place the title “Current Assets” then list

all of the current assets, assets that will be used up in one year or less, in order of

liquidity (how fast the assets can be changed into cash) on the following lines. Place the

amounts in the column second from the right.

3. Add all of the current assets together and place the subtotal in the far right hand column

and label it in the far left hand column as “ Total Current Assets.”

4. The next section will be labeled “Long-Term Investments.” Place this title in the far left

hand column of the statement. Then list all investment in other companies’ stock and any

purchase of real estate that the company plans to keep for a long-term investment. Any

real estate is property not used to produce revenues for the company. Place the amounts

in the column second to the far right hand column and add the amounts and place that

subtotal in the column to the far right hand side on the same line as the last asset.

5. The next section will be labeled, “Property, Plant and Equipmet.” Place this title in the far

left hand column of the statement as before with titles there will be no amount in the

amount columns.

6. Start with Land then Buildings, Accumulated Depreication—Building, Equipment, then

Accumulated Depreciation—Equipment. Place the amount of the assets in the left hand

column with it corsponding accumulated depreciation contra account just below it. Land

will not have

7. a accumulated depreication contra account because it does not depreciate over time as

other physical assets do in a business. Subtract the accumulated depreciation amount

from its asset account to get the book value of the asset. Place those totals for each asset

into the middle column. Add all three more or less depending on how many of these type

of assets the company owns together and place the total in the far right hand column on

the last line of those types of assets.

Instructions for a Classified Balance Sheet

MJC Revised 1-2014 4

8. The next sectin will be labeled, “Intangible assets.” Place this title in the far left hand column of the statement. List any intangibles after it. Plance the amount in the far right hand column if there is only one. If there is more than one intangible asset place the amounts in the scecond to the far right hand column and only place the subtotal in the fare right hand column.

9. The last step for the asset section of the balance sheet is to total (add together) all of the

amounts in the far right hand column. The title for this line will be, “Total Assets.” Make

sure to place a double underline under the total for this line. Dollar signs are to be placed

at the top of any column of numbers that are added or subtracted and at the end grand

total.

Liabilities Section of the Classified Balance Sheet:

1. The next section will start with the labeled, “Liabilites and Stockholders’ Equity.” Center

the title in the left hand column. No amount is required since this is only a title.

2. On the next line place the label, “Current Liabilities.” These are liabilities that are due to

be paid within the next 12 months. List accounts in order of magnitude, highest to lowest,

and place the amounts in the second from the right hand column. Place the subtotal for

this section in the far right hand column with the title, “Total Current Liabilities” placed

in the far left hand column.

3. The next subsection of this section will be labeled, “Long-Term Liabilities.” List all of

the liabilities that will be paid off in more than one year in this section. Place the amounts

in the second to the right hand column. Place the subtotal for this section in the far right

hand column. Label the subtotal line, “Total Long-Term Liabilites.”

4. The last step in this section of the balance sheet is to add up all of the amounts on the far

right hand column for this section only. The subtotal for this section will stay in the far

right hand column. No double underlines is required for this section because the next

section will need to be added to it first. The title for this line will be, “Total Liabilites.”

Place it in the far left hand column.

Instructions for a Classified Balance Sheet

MJC Revised 1-2014 5

Stockholders’ Equity Section of the Classified Balance Sheet:

1. The title, “Stockholders’ Equity” is placed in the far left hand column at the beginning of

this section. List the two accounts of common stock and retained earnings in this section.

Place the amounts in the second to the far right hand column.

2. The next step is to subtotal the two accounts and place the subtotal in the far right hand

column. The title for this line will be, “Total Stockholders’ Equity.”

3. The last step required for the section, “Liabilities and Stockholders’ Equity’ is add

together total liablities and total stockholders’ equity and place the amount in the far right

hand column with a double underline and dollar sign. The title for this line to be placed in

the far left hand column will be, “Total Liabilities and Stockholders’ Equity.”

Final Note

Not all companies own the same assets or owe the same liabilities. Place only the sections you

need for each company in the balance sheet of a company if the company does not have a

specitic type of asset or liability feel free to leave out that section of the balance sheet. Do

remember that most companies will have current assets and current liabilities. Not all companies

will have long-term assets or intangible assets. Not all companies will have long-term liabilites.

The Stockholders’ Equity is a section that all companies will have on their balance sheet.