Analyzing Balance Sheet Procedures

ch 7 accounting

The date on a monthly balance sheet prepared on July 31 is written as (199)

July 31, 20—

Information needed to prepare a balance sheet’s Asset section is obtained from a work sheet’s Account Title column and (201)

Balance Sheet Debit Column

Information needed to prepare a balance sheet’s Liabilities section is obtained from a work sheet’s Account Title column and (201)

Balance Sheet Credit Column

The amount of capital reported on a balance sheet is calculated as (202)

Capital Account Balance + Net Income - Drawing Account Balance

If a business wanted to show how the current capital balance was calculated, it would (203)

list the beginning capital balance, the net income, the withdrawals, and the ending capital balance on the balance sheet