Prepare the accounting equations and extract a balance sheet?

The accounting equation is:

Assets = Liabilities + Equity

To prepare the balance sheet, we need to list all the assets, liabilities, and equity of the company. Here is an example of a balance sheet:

XYZ Company
Balance Sheet
As of December 31, 20XX

Assets
Cash: $10,000
Accounts Receivable: $5,000
Inventory: $15,000
Total Assets: $30,000

Liabilities
Accounts Payable: $3,000
Short-term Loan: $2,000
Total Liabilities: $5,000

Equity
Common Stock: $10,000
Retained Earnings: $15,000
Total Equity: $25,000

Total Liabilities and Equity: $30,000

This balance sheet shows that the company has total assets of $30,000, total liabilities of $5,000, and total equity of $25,000. The accounting equation is balanced as Assets ($30,000) = Liabilities ($5,000) + Equity ($25,000).

Accounting Equations

- Assets = Liabilities + Equity (Assets - Liabilities = Equity)
- Revenues - Expenses = Net Income (Net Income = Revenues - Expenses)
- Beginning Equity + Net Income - Dividends = Ending Equity

Balance Sheet

The balance sheet is a financial statement that provides a snapshot of a company's financial health at a specific point in time. It shows the assets, liabilities, and equity of a company.

Assets:

- Current Assets: Cash, accounts receivable, inventory, etc.
- Non-Current Assets: Property, plant, and equipment, investments, etc.

Liabilities:

- Current Liabilities: Accounts payable, short-term loans, etc.
- Non-Current Liabilities: Long-term debt, deferred taxes, etc.

Equity:

- Share Capital
- Retained Earnings
- Other Equity Accounts

Extraction of Balance Sheet from Accounting Equations

To extract a balance sheet from the accounting equations, we need to rearrange the equations as follows:

Assets

- Assets = Liabilities + Equity
- Assets = (Assets - Liabilities) + Liabilities
- Assets = Equity + Liabilities

Liabilities

- Liabilities + Equity = Assets
- Liabilities = Assets - Equity

Equity

- Equity = Assets - Liabilities
- Equity + Liabilities = Assets
- Equity = Assets + Liabilities - Assets
- Equity = Liabilities

Using these formulas, we can extract the following balance sheet:

Assets

- Current Assets: XXXX
- Non-Current Assets: XXXX
- Total Assets: XXXX

Liabilities

- Current Liabilities: XXXX
- Non-Current Liabilities: XXXX
- Total Liabilities: XXXX

Equity

- Share Capital: XXXX
- Retained Earnings: XXXX
- Other Equity Accounts: XXXX
- Total Equity: XXXX

Total Liabilities and Equity: XXXX