Cash
|
Accounts
Receivable
|
Merchandise
Inventory
|
Supplies
|
Other
|
TOTAL
CURRENT ASSETS
|
Fixed
Assets
|
Less:
Accumulated Depreciation
|
TOTAL FIXED
ASSETS
|
TOTAL ASSETS
|
Accounts Payable
|
Salaries Payable
|
Payroll Tax Payable
|
Sales Tax Payable
|
Corporate Tax Payable
|
Other Current Liabilities
|
TOTAL CURRENT LIABILITIES
|
Loan Payable
|
Other Non-Current Liabilities
|
TOTAL NON-CURRENT LIABILITIES
|
TOTAL
LIABILITIES
|
# of Shares Issued
|
# of shares issued * par value (par value = $10 per share)
|
Additional Paid In Capital
|
Retained Earnings
|
TOTAL SHAREHOLDERS EQUITY
|
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY
|
Cash
This is the amount of Cash in Bank on 4/30/13.
Tips
·
Be sure that this amount matches the amount that
you reported as your ending balance on the Cash
Budget.
Accounts Receivable
This is money owed by customers
for purchase(s) of goods or services that have been delivered, but have
not been paid for. Firms must
keep an account of all invoices that were received and a log of all sales in
order
to verify the Accounts Receivable. (Make sure to
attach the log of all sales with the Firm Financial
Statements).
Merchandise Inventory
This is merchandise that is a
portion of the firm’s assets that is ready or will be ready for sale.
Supplies
This is the amount of Supplies on hand that has not been used
yet. The difference between Supplies on
the
Income Statement and Supplies
on the Balance Sheet is that Supplies on the Income Statement reflects
Supplies that have been USED/EXPENSED for the year, while the Supplies on the Balance Sheet reflects
Supplies that HAVE NOT BEEN USED/REMAINING in the firm. These
remaining Supplies are considered an
asset to the firm.
Tips
·
If your firm has used up a portion of Supplies, report the cost of what is
remaining of the Supplies, NOT the
amount you bought the Supplies for.
Other
This is any Other assets that your firm may own.
Total Current Assets
This is Cash + Accounts Receivable +
Merchandise Inventory + Supplies + Other.
Common Mistakes
·
Miscalculations. Be sure to check the addition
of these numbers multiple times for accuracy.
Fixed Assets
These are tangible pieces of
property that are useful to the firm but are not meant to be converted
into cash. In VE, all Fixed Assets have a value for five
years.
Examples: Furniture and equipment.
Less: Accumulated Depreciation
This is the sum of all Depreciation expense taken since the
asset was acquired. MUST be reported as
a NEGATIVE number. Assets
decrease in value every year, so the Less:
Accumulated Depreciation
will be a negative amount.
Tips
·
Be sure that this amount matches the Depreciation that was stated on the Income Statement.
·
Due to the Fixed
Assets life span of five years, each year Less: Accumulated Depreciation should be a value of the previous
year’s next multiple.
o
Example: A
firm has Fixed Assets of $10000.
During the first year of operation, the Less:
Accumulated Depreciation was -$2000, the next year was -$4000, the next
-$6000, the next -$8000, and lastly $10000 where the Fixed Assets is no longer considered to have any value.
Common Mistakes
·
Reporting Less:
Accumulated Depreciation as a positive number.
Total Fixed Assets
This is Fixed Assets + Less:
Accumulated Depreciation.
Common Mistakes
·
Miscalculations. Be sure to check the addition
of these numbers multiple times for accuracy.
·
To those who reported Less: Accumulated Depreciation as a positive amount, subtracting it
from Fixed Assets should result with
the correct Total Fixed Assets but
that is still an error. Less:
Accumulated Depreciation should ALWAYS be a negative amount.
Total Assets
This is Total Current Assets + Total
Fixed Assets.
Common Mistakes
·
Miscalculations. Be sure to check the addition
of these numbers multiple times for accuracy.
Accounts Payable
This is the amount a firm owes
for purchasing any goods or services that has not been paid off.
Salaries Payable
This is the amount a firm owes
to employees for the last pay period of the fiscal year. Since employees are
unable to be paid for work from
April 16th-April 30th, the amount owed to these employees
MUST be
reported on Salaries Payable.
TIPS
·
DO NOT attempt to pay employees on the last day
of the fiscal year in order to avoid having any Salaries Payable. All firms SHOULD have a Salaries Payable, so the amount should NOT be $0.
Payroll Tax Payable
This is the amount owed from Payroll Tax as a result of employing
people.
Tips
·
Should match the Payroll Tax reported on the Income
Statement.
·
Should not be $0.
Sales Tax Payable
This is the amount owed as a
result of sales of goods or services.
Tips
·
Should match the Sales Tax reported on the Income
Statement.
·
Should not be $0.
Corporate Tax Payable
This is the amount owed as a
result of profits that were made by the firm.
Tips
·
Should match the Corporate Tax reported on the Income
Statement.
Other Current Liabilities
This is other liabilities that
your firm may owe that have not already been included.
Total Current Liabilities
This is Accounts Payable + Salaries
Payable + Payroll Tax Payable + Sales Tax Payable + Corporate
Tax Payable + Other Current
Liabilities.
Common Mistakes
·
Miscalculations. Be sure to check the addition
of these numbers multiple times for accuracy.
Loan Payable
The amount your firm still owes
to VEC Lending for loans.
Tips
·
Using the Loan Payment Table, the amount on End
Balance for the month of April is the Loan
Payable amount.
Loan Payment Table
2012-2013
|
|||||
Report Date
|
Beginning Balance
|
Interest
|
Adjusted Balance
|
Payment
|
End Balance
|
1-May-12
|
$ -
|
$ -
|
$ -
|
$ -
|
$ -
|
1-Jun-12
|
$ -
|
$ -
|
$ -
|
$ -
|
$ -
|
1-Jul-12
|
$ -
|
$ -
|
$ -
|
$ -
|
$ -
|
1-Aug-12
|
$ -
|
$ -
|
$ -
|
$ -
|
$ -
|
1-Sep-12
|
$ -
|
$ -
|
$ -
|
$ -
|
$ -
|
1-Oct-12
|
$ -
|
$ -
|
$ -
|
$ -
|
$ -
|
1-Nov-12
|
$ 350,000.00
|
$ 1,385.42
|
$ 351,385.42
|
$ 6,500.68
|
$ 344,884.74
|
1-Dec-12
|
$ 344,884.74
|
$ 1,365.17
|
$ 346,249.91
|
$ 6,500.68
|
$ 339,749.23
|
1-Jan-13
|
$ 339,749.23
|
$ 1,344.84
|
$ 341,094.07
|
$ 6,500.68
|
$ 334,593.39
|
1-Feb-13
|
$ 334,593.39
|
$ 1,324.43
|
$ 335,917.82
|
$ 6,500.68
|
$ 329,417.14
|
1-Mar-13
|
$ 329,417.14
|
$ 1,303.94
|
$ 330,721.08
|
$ 6,500.68
|
$ 324,220.40
|
1-Apr-13
|
$ 324,220.40
|
$ 1,283.37
|
$ 325,503.77
|
$ 6,500.68
|
$ 319,003.09
|
Total
|
$ 8,007.17
|
$39,004.08
|
$
319,003.09
|
In this example, the Loan Payable amount is $319,003.09.
Common Mistakes
·
Firms often miss payments for some months and
make these payments during later months expecting that it would account for any
missed payments but that is NOT how it works. If a payment is missed, Interest has accumulated and will
affect the end balance for loans in April as well. To prevent this from
occurring, be sure to either make payments EVERY month or make sure your firm
reports the actual payments that were made for each month. If your firm misses
a payment in January and makes the January payment during February, the January
payment is $0 and the February payment is the missed January payment + February
payment. (Note: If your firm wants to successfully pay off the loan in five
years, your firm must account for the missed payment(s) by adding the Interest that has accumulated due to
the missed payment). The best way to avoid these miscalculations is to make
payments EVERY month. Your firm can put a recurring transaction to ensure that
payments are made each month.
Other Non-Current Liabilities
This is Other Non-Current Liabilities that have not already been included.
Total Non-Current Liabilities
This is Loan Payable + Other
Non-Current Liabilities.
Common Mistakes
·
Miscalculations. Be sure to check the addition
of these numbers multiple times for accuracy.
Total Liabilities
This is Total Current Liabilities + Total
Non-Current Liabilities.
Common Mistakes
·
Miscalculations. Be sure to check the addition
of these numbers multiple times for accuracy.
# of Shares Issued
This is the amount of common
stock issued to your firm upon opening.
Tips
·
All VE firms are issued common stock, so this
should NOT be $0.
# of Shares Issued Par Value
This is the value of the common
stocks that your firm owns. The par value is $10 per share.
Example: A firm has 1000 shares. The calculation of # of Shares Issued Par Value is as
follows:
(1000
shares x $10) = $10000
Additional Paid In Capital
This is the amount in excess
paid by an investor who purchased a stock over the par-value price.
Example: A firm has 1000 shares with a par value of $10 per share.
Originally the total value of all these
shares should be $10000, but an investor decides to pay $15 per share
instead. This would mean the total
value paid for the shares is $15000.The Additional Paid In Capital for this firm would be $5000. The
calculation is as follows:
(1000 shares x $15) – (1000
shares x $10) =
($15000) – ($10000) = $5000
Investor’s Payment – # of Shares Issued Par Value = Additional Paid In
Capital
Retained Earnings
This is Total Assets – Total
Liabilities - # of Shares Issued Par
Value – Additional Paid in Capital.
Total Shareholders’ Equity
This is # of Shares Issued Par Value + Additional
Paid in Capital + Retained
Earnings.
Total Liabilities and Shareholders’ Equity
This is Total Liabilities + Shareholders
Equity.
Tips
·
To confirm that your firm’s balance sheet
balances, this amount should also be equal to Total Assets.
