How to prepare balance sheet

4. Example of preparing balance sheet

There are several steps in preparing a balance sheet.† These steps are not prescribed procedures, so there may be variations based on your companyís needs and situation. Letís review each step in detail.

4.1. Step 1: Prepare balance sheet template

A balance sheet template is a blank format with header, date, categories, and components of categories. The template can be prepared on paper, or better off, it can be prepared in a spreadsheet software (e.g. MS Excel).

For our illustration, we prepared a balance sheet template in MS Excel and presented it below. The template is in the vertical format due to width limitations on our website:

Illustration 4: Balance sheet template

Your Company Name
Trial Balance
December 31, 20X0

ASSETS

Current Assets:

   

Cash & Cash Equivalents

   

Marketable Securities

   

Accounts Receivable

   

Inventories

   

Prepaid Expenses

   

Total Current Assets

   
     

Fixed Assets

   

Intangible Assets

   

Investments

   

Other Non-current Assets

   
     

TOTAL ASSETS

   
     

LIABILITIES

Current Liabilities:

   

Accounts Payable

   

Accrued Expenses

   

Short-term Loans

   

Current Portion of LT Debt

   

Income Taxes Payable

   

Total Current Liabilities

   
     

Non-current Liabilities:

   

Line of Credit

   

Term Loan

   

Total Non-current Liabilities

   

TOTAL LIABILITIES

   
     

EQUITY

Capital

   

Current Year Earnings

   

Retained Earnings

   

TOTAL EQUITY

   
     

TOTAL LIABILITIES & EQUITY

   

The spaces highlighted in light green are the ones where we will enter amounts taken from the trial balance.

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