Lesson 22 3

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

LESSON 22-3LESSON 22-3

Preparing a Statement of Stockholders’ Equity and Balance Sheet

2

LESSON 22-3CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

STATEMENT OF STOCKHOLDERS’ STATEMENT OF STOCKHOLDERS’ EQUITYEQUITY

11

22

33

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2. Prepare the capital stock section.

1. Write the heading.

3. Prepare the retained earnings section.

3

LESSON 22-3CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

BALANCE SHEETBALANCE SHEET page 650

4

LESSON 22-3CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

BALANCE SHEETBALANCE SHEET page 650

5

LESSON 22-3CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

ANALYZING A BALANCE SHEETANALYZING A BALANCE SHEET page 652

WorkingCapital

=Total

Current Liabilities

–Total Current

Assets

$172,100.02=$57,494.53–$229,594.55

CurrentRatio

=Total

Current Liabilities

÷Total Current

Assets

4.0 to 1=$57,494.53÷$229,594.55

Working Capital

Current Ratio

6

LESSON 22-3CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

TERMS REVIEWTERMS REVIEW

long-term liabilities working capital current ratio

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