Basic Financial Statements
The basics of financial statements starts with a Balance Sheet. It represents what you own (Assets), what you owe (Liabilities), and what you’re worth (Equity). Here is a very basic example of a Balance Sheet.
Assets:
Cash in checking account $12,000
Cash in Security Deposit Account 8,250
Total Current Assets $20,250
Office Furniture/Equipment 1,500
Real Estate – 123 Main Street (Book Value) 73,500
Real Estate – 456 Elm Street (Book Value) 125,000
Real Estate – 789 Oak Street (Book Value) 320,000
Total Non-Current Assets $520,000
Total Assets $540,250
Liabilities:
Accounts Payable (Bills due) $1,450
Security Deposit Liability 8,250
Total Current Liability $9,700
Real Estate Mortgage – 123 Main Street 52,325
Real Estate Mortgage – 456 Elm Street 75,000
Real Estate Mortgage – 789 Oak Street 200,500
Total Non-Current Liability $327,825
Total Liabilities $337,525
Total Equity (Assets minus Liabilities) $202,725