Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory...
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Transcript of Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory...
![Page 1: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/1.jpg)
Adjusting Entries
and Closing Process
Module 4
![Page 2: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/2.jpg)
SAP 2007 / SAP University Alliances Introductory Accounting
Learning Objectives
![Page 3: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/3.jpg)
SAP 2007 / SAP University Alliances Introductory Accounting
The Accounting Cycle
Analyze transactions
Journalize
Post
Prepare statements
Close
Prepare post-closingtrial balance
Adjust
Prepareunadjusted trial balance
Prepare adjusted
trial balance
22
3
4
5 6
7
8
91
![Page 4: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/4.jpg)
SAP 2007 / SAP University Alliances Introductory Accounting
Adjusting the Accounts
![Page 5: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/5.jpg)
SAP 2007 / SAP University Alliances Introductory Accounting
GAAP and the Adjusting Process
![Page 6: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/6.jpg)
SAP 2007 / SAP University Alliances Introductory Accounting
Accounting Principles
![Page 7: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/7.jpg)
SAP 2007 / SAP University Alliances Introductory Accounting
Accounting Principles
![Page 8: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/8.jpg)
SAP 2007 / SAP University Alliances Introductory Accounting
Cash vs. Accrual Basis of Accounting
![Page 9: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/9.jpg)
SAP 2007 / SAP University Alliances Introductory Accounting
Adjustments
![Page 10: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/10.jpg)
SAP 2007 / SAP University Alliances Introductory Accounting
Prepaid Expenses
![Page 11: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/11.jpg)
Prepaid Expenses–Example
Prepaid Insurance Insurance ExpenseJan. 1 1,800
SAP 2007 / SAP University Alliances Introductory Accounting
![Page 12: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/12.jpg)
Prepaid Expenses — Example
Prepaid InsuranceJan. 1 2,400 2,400
$2,400January February March
Cash
$800 $800 $800
SAP 2007 / SAP University Alliances Introductory Accounting
![Page 13: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/13.jpg)
Prepaid Expenses — Example
Prepaid Insurance Insurance ExpenseJan. 1 2,400Jan.31 800 800balance 1,600
$800 $800 $800
$2,400January February March
SAP 2007 / SAP University Alliances Introductory Accounting
![Page 14: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/14.jpg)
Prepaid Expenses — Example
Prepaid Insurance Insurance ExpenseJan. 1 2,400Jan.31 800 800Feb.28 800 800balance 800
$800 $800 $800
$2,400January February March
SAP 2007 / SAP University Alliances Introductory Accounting
![Page 15: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/15.jpg)
Prepaid Expenses — Example
Prepaid Insurance Insurance ExpenseJan. 1 2,400Jan.31 800 800Feb.28 800 800Mar.31 800 800balance 0
$800 $800 $800
$2,400January February March
SAP 2007 / SAP University Alliances Introductory Accounting
![Page 16: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/16.jpg)
SAP 2007 / SAP University Alliances Introductory Accounting
Amortization
Straight-LineAmortization/depreciationExpense
= Asset Cost - Salvage Value
Useful Life
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SAP 2007 / SAP University Alliances Introductory Accounting
Amortization/depreciation — Example
On January 1,2005, a company purchased a piece of equipment for $96,000. The equipment is expected to have a useful life of six years and have a salvage value of $6,000.
Straight-LineAmortizationExpense
= Asset Cost - Salvage Value
Useful Life
= $96,000 - $6,000
6 years
= $15,000/year
![Page 18: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/18.jpg)
SAP 2007 / SAP University Alliances Introductory Accounting
Amortization/depreciation
Cash96,000 1/1/05 96,000
Equipment
![Page 19: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/19.jpg)
SAP 2007 / SAP University Alliances Introductory Accounting
Amortization Expense,Amortization, Equipment
15,000 12/31/05 15,000Equipment
Accumulated
Amortization/depreciation
![Page 20: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/20.jpg)
SAP 2007 / SAP University Alliances Introductory Accounting
Amortization Expense,Amortization, Equipment
12/31/05 15,00015,000 12/31/06 15,000
balance 60,000
EquipmentAccumulated
Amortization/depreciation
![Page 21: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/21.jpg)
SAP 2007 / SAP University Alliances Introductory Accounting
Amortization Expense,Amortization, Equipment
12/31/05 15,00012/31/06 15,000
15,000 12/31/07 15,000balance 45,000
EquipmentAccumulated
Amortization/depreciation
![Page 22: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/22.jpg)
SAP 2007 / SAP University Alliances Introductory Accounting
Amortization Expense,Amortization, Equipment
12/31/05 15,00012/31/06 15,00012/31/07 15,000
15,000 12/31/08 15,000balance 30,000
EquipmentAccumulated
Amortization/depreciation
![Page 23: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/23.jpg)
2005 2006 2007 2008Equipment $96,000 $96,000 $96,000 $96,000 Less: Accumulated Amortization 15,000 30,000 45,000 60,000Equipment-net $81,000 $66,000 $51,000 $36,000
December 31
Amortization, Equipment96,000 12/31/05 15,000
12/31/06 15,00012/31/07 15,00012/31/08 15,00012/31/09 15,000
EquipmentAccumulated
SAP 2007 / SAP University Alliances Introductory Accounting
Amortization/depreciation
Book Value is equal to the Net value of the Fixed Asset Account
![Page 24: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/24.jpg)
SAP 2007 / SAP University Alliances Introductory Accounting
Unearned Revenues
![Page 25: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/25.jpg)
Unearned Revenues — Example
Unearned Revenue19,000 Aug.1 19,000
Cash
SAP 2007 / SAP University Alliances Introductory Accounting
![Page 26: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/26.jpg)
Unearned Revenues — Example
Maintenance Revenue19,000 Aug.1
9,500 Aug.31 9,5009,500 balance
Unearned Revenue
SAP 2007 / SAP University Alliances Introductory Accounting
![Page 27: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/27.jpg)
Unearned Revenues — Example
Maintenance Revenue19,000 Aug.1
9,500 Aug.31 9,5009,500 Sept.30 9,500
0 balance
Unearned Revenue
SAP 2007 / SAP University Alliances Introductory Accounting
![Page 28: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/28.jpg)
SAP 2007 / SAP University Alliances Introductory Accounting
Accrued Expenses
![Page 29: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/29.jpg)
SAP 2007 / SAP University Alliances Introductory Accounting
Accrued Expenses — Example
![Page 30: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/30.jpg)
SAP 2007 / SAP University Alliances Introductory Accounting
Accrued Revenues
![Page 31: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/31.jpg)
SAP 2007 / SAP University Alliances Introductory Accounting
Accrued Revenues — Example
![Page 32: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/32.jpg)
Adjustments and Financial Statements
SAP 2007 / SAP University Alliances Introductory Accounting
![Page 33: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/33.jpg)
Adjusted Trial Balance
SAP 2007 / SAP University Alliances Introductory Accounting
![Page 34: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/34.jpg)
SAP 2007 / SAP University Alliances Introductory Accounting
Financial Statement Preparation
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SAP 2007 / SAP University Alliances Introductory Accounting
Correcting Errors
![Page 36: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/36.jpg)
SAP 2007 / SAP University Alliances Introductory Accounting
Correcting Errors — Example
![Page 37: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/37.jpg)
SAP 2007 / SAP University Alliances Introductory Accounting
Correcting Errors — Example
![Page 38: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/38.jpg)
SAP 2007 / SAP University Alliances Introductory Accounting
Correcting Errors — Example
![Page 39: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/39.jpg)
Alternatives in Accounting for Prepaids and Unearned Revenues
SAP 2007 / SAP University Alliances Introductory Accounting
![Page 40: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/40.jpg)
SAP 2007 / SAP University Alliances Introductory Accounting
Alternatives in Accounting for Prepaids and Unearned Revenues
![Page 41: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/41.jpg)
SAP 2007 / SAP University Alliances Introductory Accounting
Payment Recorded as an Asset Payment Recorded as an Expense
Jan.1 Prepaid Insurance 2,400 Insurance Expense 2,400 Cash 2,400 Cash 2,400
Jan.31 Insurance Expense 800 Prepaid Insurance 1,600 Prepaid Insurance 800 Insurance Expense 1,600
Prepaid Insurance2,400 Jan.1
800 Jan.31 1,6001,600 balance 1,600
Jan.1 2,400800 Jan.31 1,600800 balance 800
Insurance ExpenseInsurance Expense
Prepaid Insurance
![Page 42: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/42.jpg)
Alternatives in Accounting for Prepaids and Unearned Revenues
SAP 2007 / SAP University Alliances Introductory Accounting
![Page 43: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/43.jpg)
SAP 2007 / SAP University Alliances Introductory Accounting
Alternatives in Accounting for Prepaids and Unearned Revenues
![Page 44: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/44.jpg)
SAP 2007 / SAP University Alliances Introductory Accounting
Receipt Recorded as a Liability Receipt Recorded as a Revenue
Mar.1 Cash 18,000 Cash 18,000 Unearned Revenue 18,000 Maintenance Revenue 18,000
Mar.31 Unearned Revenue 9000 Maintenance Revenue 9,000 Maintenance Revenue 9000 Unearned Revenue 9,000
Unearned Revenue18,000 Mar.1
9,000 Mar.31 9,0009,000 balance 9,000
Mar.1 18,0009,000 Mar.31 9,0009,000 balance 9,000
Maintenance RevenueMaintenance Revenue
Unearned Revenue
![Page 45: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/45.jpg)
SAP 2007 / SAP University Alliances Introductory Accounting
The Closing Process
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SAP 2007 / SAP University Alliances Introductory Accounting
Four-Step Closing Process (REID)
![Page 47: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/47.jpg)
SAP 2007 / SAP University Alliances Introductory Accounting
Income Summary7,350
7,350
Consulting Revenue6,850 6,850
-
Rental Revenue500 500
-
Step 1: Close Revenue accounts to Income Summary
Consulting Revenue 6850Rental Revenue 500 Income Summary 7,350
![Page 48: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/48.jpg)
SAP 2007 / SAP University Alliances Introductory Accounting
Amortization Expense150 150
-
Step 2: Close Expense Accounts to Income Summary
Income Summary4,105 7,350
3,245
Rent Expense1,400 1,400
-
Income Summary 4,105 Insurance Expense 300 Rent Expense 1,400 Interest Expense 65 Amortization Expense 150 Salaries Expense 1,100 Supplies Expense 900 Utilities Expense 190
Interest Expense65 65
-
Insurance Expense300 300
-
Utilities Expense190 190
-
Supplies Expense900 900
-
Salaries Expense1,100 1,100
-
![Page 49: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/49.jpg)
SAP 2007 / SAP University Alliances Introductory Accounting
Carol Finlay, Capital
9,500 3,245
bal. 12,745
Income Summary4,105 7,350
bal. 3,245 3,245 -
Step 3: Close Income Summary to Owner’s Capital
Income Summary 3,245 Ms Owner, Capital 3,245
![Page 50: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/50.jpg)
SAP 2007 / SAP University Alliances Introductory Accounting
Carol Finlay, Capital
9,500 945 3,245
balance 11,800
Step 4: Close Drawings to Owner’s Capital
Carol Finlay, Withdrawals
945 945
balance -
Carol Finlay, Capital 945 Carol Finlay, Withdrawals 945
![Page 51: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/51.jpg)
SAP 2007 / SAP University Alliances Introductory Accounting
Post-Closing Trial Balance
![Page 52: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/52.jpg)
SAP 2007 / SAP University Alliances Introductory Accounting
The Accounting Cycle
Analyze transactions
Journalize
Post
Prepare statements
Close
Prepare post-closingtrial balance
Adjust
Prepareunadjusted trial balance
Prepare adjusted
trial balance
22
3
4
5 6
7
8
91
![Page 53: Adjusting Entries and Closing Process Module 4. SAP 2007 / SAP University Alliances Introductory Accounting Explain the purpose of adjustments.Outline.](https://reader034.fdocuments.net/reader034/viewer/2022051214/56649e035503460f94aee436/html5/thumbnails/53.jpg)
SAP 2007 / SAP University Alliances Introductory Accounting
Classified Balance Sheet