In Accounting, An Itemized Statement Of What One Owns, What One Owes, and What One Is Worth Is Called A:

The First Step In Setting Up Records Is To Find Out: 1. What One Owns 2. What One Owes 3. What One Is Worth

Balance Sheet Reports What A Business Owns-Assets Owes-Liabilities Worth-Owner’s Equity

(Name of Business) Navarro’s Car Wash (Name of Form) Balance Sheet (Date) June 30, 2007 Navarro’s Car Wash Balance Sheet June 30, 2007

Navarro’s Car Wash Balance Sheet June 30, 2006

Three Sections of a Balance Sheet Assets Liabilities Owner’s Equity

Assets-(lst Section) Things You Own Examples: Supplies Cash Equipment

Navarro’s Car Wash Balance Sheet June 30, 2006 Assets Cash On Hand Equipment Supplies Total Assets

Things A Business Owes -Accounts Payable-Sears, Inc. -Accounts Payable-IBM Company

Navarro’s Car Wash Balance Sheet June 30, 2006 Assets Cash Equipment Supplies Total Assets Liabilities Accounts Pay.-IBM Accounts Pay./Sears, Inc. Total Liabilities

What A Business Is Worth -Jose L. Navarro, Capital -Jose L. Navarro, Withdrawals

The Worth Of A Business -Joe Navarro, Capital -Joe Navarro, Withdrawals

Navarro’s Car Wash Balance Sheet June 30, 2006 Assets Cash Equipment Supplies Total Assets Liabilities Dell Computers Accounts Pay./TG Supplies Total Liabilities Owner’s Equity JL Navarro, Capital

Jon Clark, For Example, Owns The Following: Cash On Hand $ 5,500 Equipment 25,000 Supplies 2,000 Office Equipment 5,000 Office Supplies 1,000 Total Amount Owned $38,500

Jon Clark Owes The Following: Owed To TG Supply 1,000 Owed To Max Furniture 400 Total Amount Owed$ 1,400

The Accounting Equation Assets = Liabilities + Owner’s Equity $38,500 = $1,400 + $37,100

Jon Clark Owns$38,500 Jon Clark Owes 1,400 Jon Clark Is Worth $37,100 Here Is The Process:

By Subtracting What Jon Clark Owes ($1,400) From What He Owns ($38,500) We Find What He Is Worth.

Summary Balance Sheet Reports: What A Business Owns-Assets What A Business Owes-Liabilities What A Business is Worth-Owner’s Equity