Report Form Balance Sheet
A Balance Sheet that records Assets, Liabilities and Owner’s Equity vertically
Financial Statements are prepared at the end of a Fiscal Period in the following order
Effect of Revenue and Expenses
If a Net Income is earned, then it is added to the Owner’s Equity Otherwise, if a Net Loss occurs, then the amount is subtracted from the Owner’s Equity
Examples of Owner’s Equity stuff
Add: Net Income for October Less: Net Loss for October Increase in Capital Decrease in Capital