Question

please perform a google or bing search on sample balance sheets. Are there any assets or liabilities shown that you don’t understand what

they represent?

Answer 1

Sample Balance Sheet

Most accounting balance sheets classify a company's assets and liabilities into distinctive groupings such as Current Assets; Property, Plant, and Equipment; Current Liabilities; etc. These classifications make the balance sheet more useful. The following balance sheet example is a classified balance sheet.

From the above balance sheet we can understand majority items. but some items are complicated which requires explanation are

1.Common stock :

The type of stock that is present at every corporation. (Some corporations have preferred stock in addition to their common stock.) Shares of common stock provide evidence of ownership in a corporation. Holders of common stock elect the corporation's directors and share in the distribution of profits of the company via dividends. If the corporation were to liquidate, the secured lenders would be paid first, followed by unsecured lenders, preferred stockholders (if any), and lastly the common stockholders.

2.Accumulated other comprehensive income definition

A separate line within stockholders' equity that reports the corporation's cumulative income that has not been reported as part of net income on the corporation's income statement. The items that would be included in this line involve the income or loss involving foreign currency transactions, hedges, and pension liabilities.

3.Treasury stock definition

Treasury stock is usually a corporation's previously issued shares of common stock that have been purchased from the stockholders, but the corporation has not retired the shares. The number of shares of treasury stock (or treasury shares) is the difference between the number of shares issued and the number of shares outstanding. Since the treasury shares result in fewer shares outstanding, there may be a slight increase in the corporation's earnings per share.

4.Land improvements definition

A long-term asset which indicates the cost of the constructed improvements to land, such as driveways, walkways, lighting, and parking lots. Land Improvements will be depreciated over their useful life by debiting the income statement account Depreciation Expense and by crediting the balance sheet account Accumulated Depreciation: Land Improvements

So I am going to give brief explanation regarding all items

We will begin our explanation of the accounting balance sheet with its major components, elements, or major categories:

• Assets
• Liabilities
• Owner's (Stockholders') Equity

Assets

Assets are things that the company owns. They are the resources of the company that have been acquired through transactions, and have future economic value that can be measured and expressed in dollars. Assets also include costs paid in advance that have not yet expired, such as prepaid advertising, prepaid insurance, prepaid legal fees, and prepaid rent.

Examples of asset accounts that are reported on a company's balance sheet include:

• Cash
• Petty Cash
• Temporary Investments
• Accounts Receivable
• Inventory
• Supplies
• Prepaid Insurance
• Land
• Land Improvements
• Buildings
• Equipment
• Goodwill

Usually asset accounts will have debit balances.

Contra assets are asset accounts with credit balances. (A credit balance in an asset account is contrary—or contra—to an asset account's usual debit balance.) Examples of contra asset accounts include:

• Allowance for Doubtful Accounts
• Accumulated Depreciation-Land Improvements
• Accumulated Depreciation-Buildings
• Accumulated Depreciation-Equipment
• Accumulated Depletion

Classifications Of Assets On The Balance Sheet

Accountants usually prepare classified balance sheets. "Classified" means that the balance sheet accounts are presented in distinct groupings, categories, or classifications. The asset classifications and their order of appearance on the balance sheet are:

• Current Assets
• Investments
• Property, Plant, and Equipment
• Intangible Assets
• Other Assets

Liabilities

Liabilities are obligations of the company; they are amounts owed to creditors for a past transaction and they usually have the word "payable" in their account title. Along with owner's equity, liabilities can be thought of as a source of the company's assets.Liabilities also include amounts received in advance for future services.

Examples of liability accounts reported on a company's balance sheet include:

• Notes Payable
• Accounts Payable
• Salaries Payable
• Wages Payable
• Interest Payable
• Other Accrued Expenses Payable
• Income Taxes Payable
• Customer Deposits
• Warranty Liability
• Lawsuits Payable
• Unearned Revenues
• Bonds Payable

Liability accounts will normally have credit balances.

Contra liabilities are liability accounts with debit balances. (A debit balance in a liability account is contrary—or contra—to a liability account's usual credit balance.) Examples of contra liability accounts include:

• Discount on Notes Payable
• Discount on Bonds Payable
• Debt Issue Costs
• Bond Issue Costs

Classifications Of Liabilities On The Balance Sheet

Liability and contra liability accounts are usually classified (put into distinct groupings, categories, or classifications) on the balance sheet. The liability classifications and their order of appearance on the balance sheet are:

• Current Liabilities
• Long Term Liabilities

Owner's Equity

Owner's Equity—along with liabilities—can be thought of as a source of the company's assets. Owner's equity is sometimes referred to as the book value of the company, because owner's equity is equal to the reported asset amounts minus the reported liability amounts.

Examples of stockholders' equity accounts include:

• Common Stock
• Preferred Stock
• Paid-in Capital in Excess of Par Value
• Paid-in Capital from Treasury Stock
• Retained Earnings
• Accumulated Other Comprehensive Income
• Etc.

Both owner's equity and stockholders' equity accounts will normally have credit balances.

Contra owner's equity accounts are a category of owner equity accounts with debit balances. (A debit balance in an owner's equity account is contrary—or contra—to an owner's equity account's usual credit balance.) An example of a contra owner's equity account is Mary Smith, Drawing (where Mary Smith is the owner of the sole proprietorship). An example of a contra stockholders' equity account is Treasury Stock.