Basic Financial Statements

 Self-Paced Overview

The Balance Sheet

Definitions of Balance Sheet Items – Claims on Assets

Claims on assets arise from debt and from ownership claims on the company. As the number of liabilities and ownership items increase, the complexity of the balance sheet increases.

Balance Sheet
Products, Inc.

January 1, 2017

Scroll over account names for definitions

Claims on Assets

LiabilitiesLiabilities:Debts owned by an entity that can be satisfied through disbursing assets or rendering services.
Current LiabilitiesCurrent Liabilities:Those that require meeting the obligation within one year.    
Long-term Debt : 1 Yr.Long-term Debt : 1 Yr.:That portion of long-term debt which is maturing within the year. $18,000  
Notes PayableNotes Payable:Debt owed on a short-term note. $39,000  
Accounts PayableAccounts Payable:Short-term obligations, created by the acquisition of goods and services. $15,000  
Taxes PayableTaxes Payable:Taxes due within the year. $13,000  
Accrued ExpensesAccrued Expenses:Short-term obligations, such as salaries, for services received but not yet paid. $43,000  
Other Current LiabilitiesOther Current Liabilities:As an example, dividends payable. Those items that do not fit into other categories. $11,000  
Total Current Liabilities $139,000  
Long-Term LiabilitiesLong-Term Liabilities:Due in period exceeding one year.    
Notes PayableNotes Payable:Promissory notes. $18,000  
Bonds PayableBonds Payable:Obligation due on maturity value of bonds. $99,000  
Total Long-Term Liabilities $117,000  
Other LiabilitiesOther Liabilities:Liabilities relating to operational obligations such as pension obligations, deferred taxes, service warranties.    
Pension ObligationsPension Obligations:Liabilities for future pension benefits due employees. $98,900  
Deferred TaxesDeferred Taxes:Longer-term tax obligations which have been deferred to some future period. $72,000  
Minority InterestMinority Interest:Ownership of minority shareholders in the equity of consolidated subsidiaries. Generally considered a liability. (It is usually seldom material.) $12,400  
Total Other Liabilities $183,300  
Total Liabilities   $439,300
Owners Equity
Preferred StockPreferred Stock:Special class of stock. $12,000  
Common EquityCommon Equity:Ownership of common stockholders. Common stock, capital surplus and retained earnings.    
Common StockCommon Stock:Number of shares outstanding times par value. $118,000  
Capital SurplusCapital Surplus:Reflection of amount received per share of stock in excess of par value. $110,000  
Retained EarningsRetained Earnings:Undistributed earnings of the corporation. $100,000  
Treasury StockTreasury Stock:Stock in the company which has been repurchased and not retired. −$55,000  
Total Common Equity $273,000  
Total Owners' Equity   $285,000
Total Claims on Assets   $724,300

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