Balance Sheet Exercises



Balance Sheet Questions

1. Explain the purpose of a balance sheet.

2. Define the terms assets, liabilities, and equity.

3. What is the fundamental accounting equation?

4. How are assets listed on the balance sheet?

5. Define the two categories that liabilities can be broken into.

6. How are liabilities listed on the balance sheet?

7. Classify each of the following as an asset (A) or a liability (L) of Morgan INC.

a) Accounts Receivable ______ f) Telephone Bill _____

b) Canada Savings Bond ______ g) Bank Loan _____

c) Amount owed to C. Evan ______ h) Office Furniture _____

d) Amount owed by J. Morgan ______ i) Accounts Payable _____

e) Money in the bank ______ j) Supplies _____

8. Prepare a list of your assets and liabilities. After preparing the list, calculate your equity.

Balance Sheet Exercises

✓ In Microsoft Excel, produce each of the following balance sheets

✓ All of your balance sheets should be in one file

✓ Rename each of the sheets at the bottom of the program with the name of the owner

✓ Save your file Balance Sheet Exercises in your Accounting folder

1. Kate Kramer is the owner and operator of the Kramer Company. On September 30, 20--, The Kramer Company had the following assets and liabilities.

|Assets |Liabilities |

|Cash on Hand | $ 106.00 |Able Supply (payable) | $ 740.00 |

|Bank Balance | $ 1,530.00 |C.P. Gregg (payable) | $ 3,000.00 |

|J. Crothers (account receivable) | $ 1,100.00 |Bank Loan | $ 1000.00 |

|R. Zack (account receivable) | $ 370.00 | | |

|Supplies | $ 1,200.00 | | |

|Furniture and Equipment | $ 14,700.00 | | |

|Delivery Equipment | $ 20,100.00 | | |

2. The New Western Company in Fort Frances, Ontario, owned by Guy Albrecht, had the following assets and liabilities on March 31, 20--.

|Bank | $ 1,896.00 |

|Tasty Beverages (receivable) | $ 750.00 |

|Food Haven (receivable) | $ 400.00 |

|Metro Mall (receivable) | $ 1,235.00 |

|Supplies | $ 850.00 |

|Furniture and Equipment | $ 75,840.00 |

|Trucks | $ 35,000.00 |

|Land | $ 50,000.00 |

|Building | $ 140,000.00 |

|Household Finance Company (payable) | $ 19,345.00 |

|General Trading Company (payable) | $ 2,356.00 |

|Lightning Electronics (creditor) | $ 3,378.00 |

|Bank Loan | $ 10,000.00 |

|Mortgage Payable | $ 75,000.00 |

3. Michael Travis, the owner of Travis and Company located in Moncton, New Brunswick, gave the following list of assets and liabilities to a public accountant and asked him to prepare a balance sheet as of April 22, 20--.

|Amounts owed to Travis and Company | |Other Items and Information | |

|G. Fordham | $ 1,042.16 |Office Supplies | $ 326.40 |

|W. Gaines | $ 743.86 |Bank Balance | $ 4,946.03 |

|D. Samuelson | $ 1,346.95 |Office Equipment | $ 11,960.00 |

| | |Shop Equipment | $ 3,535.00 |

|Amounts owed by Travis and Company | |Delivery Equipment | $ 14,240.00 |

|Beacon Company | $ 1,567.25 |Bank Loan | $ 25,000.00 |

|Empire Insurance | $ 150.00 |Mortgage Payable | $ 52,000.00 |

|Gem Finance | $ 1,236.45 |Building | $135,000.00 |

|General Supply | $15,540.00 |Land | $ 46,000.00 |

|Raymond and Company | $ 125.00 | | |

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