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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