Balance sheets are one of the main financial statements that helps represent a company’s financial position within a specific date. A balance sheet usually presents assets in one section and liabilities and owner’s equity in another to balance out into the accounting equation (assets = liabilities + owner’s equity). This financial statement is often described as a “picture of a company’s financial condition”. It is important to keep the balance sheet in accordance to the accounting equation because of the fundamental quality of faithful representation. Faithful representation ensures that the information being shown on the balance sheet is accurate and provides useful information for the decision makers. There are 3 major sections to a balance sheet: assets, liabilities, and owner’s equity. Balance sheets are a simple and organized financial statement that can be completed in under an hour as long as you are knowledgeable in accounting.
0.0 The following set of instructions will help guide a person construct a balance sheet in Microsoft Excel for a company in accordance to the FASB.
1.0 Gather the necessary information and tools.
1.1 Print the adjusted trial balance.
1.2 Run Microsoft Excel.
2.0 Title your Balance Sheet in accordance to your company’s guidelines.
2.1 Input the name of your company.
2.2 Type Balance Sheet.
2.3 Enter the date for which the balance sheet will be representing.
3.0 Calculate Total Assets.
3.1 List all account names of assets from the adjusted trial balance in order of liquidity.
3.2 Enter all asset amounts with their corresponding account names.
3.3 Add all assets amounts to get the final figure Total Assets.
4.0 Calculate Total Liabilities.
4.1 List all account names of liabilities.
4.2 Enter all liability amounts with their corresponding account names.
4.3 Add all liabilities amounts to get final figure Total Liabilities.
5.0 Calculate Owner’s Equity.
5.1 List all equity accounts.
5.2 Enter all equity amounts with...