{"id":129,"date":"2024-09-06T16:46:43","date_gmt":"2024-09-06T16:46:43","guid":{"rendered":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/chapter\/balance-sheet\/"},"modified":"2024-09-16T17:46:14","modified_gmt":"2024-09-16T17:46:14","slug":"balance-sheet","status":"publish","type":"chapter","link":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/chapter\/balance-sheet\/","title":{"raw":"Balance Sheet","rendered":"Balance Sheet"},"content":{"raw":"<section class=\"textbox learningGoals\" aria-label=\"Learning Goals\">\r\n<ul>\r\n \t<li>Prepare a balance sheet<\/li>\r\n<\/ul>\r\n<\/section>&nbsp;\r\n\r\nThe balance sheet shows the accounting equation: [latex]\\text{A}=\\text{L}+\\text{E}[\/latex].\r\n\r\nYou've already calculated owner\u2019s equity on the Statement of Owner\u2019s Equity as $17,350, so now let's account for the assets and liabilities.\r\n\r\nFirst, list out the assets (in blue and numbered in the 100s) from the adjusted trial balance, the liabilities (in red and numbered in the 200s), and the equity total (in green and numbered in the 300s, 400s, and 500s).\r\n<table class=\"fin-table gridded\"><caption>NeatNiks\r\nAdjusted Trial Balance\r\nFor the month ended October 31, 20XX<\/caption>\r\n<thead>\r\n<tr>\r\n<th rowspan=\"2\" scope=\"col\"><span class=\"u-sr-only\">Reference No.<\/span><\/th>\r\n<th rowspan=\"2\" scope=\"col\"><span class=\"u-sr-only\">Accounts<\/span><\/th>\r\n<th colspan=\"2\" scope=\"col\">Adjusted trial balance<\/th>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"col\">Debits<\/th>\r\n<th scope=\"col\">Credits<\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr class=\"highlight-blue\">\r\n<td>110<\/td>\r\n<td>Checking<\/td>\r\n<td class=\"r\">3,500.00<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr class=\"highlight-blue\">\r\n<td>120<\/td>\r\n<td>Accounts Receivable<\/td>\r\n<td class=\"r\">5,650.00<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr class=\"highlight-blue\">\r\n<td>125<\/td>\r\n<td>Supplies<\/td>\r\n<td class=\"r\">1,000.00<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr class=\"highlight-blue\">\r\n<td>130<\/td>\r\n<td>Prepaid Rent<\/td>\r\n<td class=\"r\">10,000.00<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr class=\"highlight-red\">\r\n<td>210<\/td>\r\n<td>Account Payable<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">1,600.00<\/td>\r\n<\/tr>\r\n<tr class=\"highlight-red\">\r\n<td>220<\/td>\r\n<td>Contractor Payable<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">1,200.00<\/td>\r\n<\/tr>\r\n<tr class=\"highlight-green\">\r\n<td>310<\/td>\r\n<td class=\"r\">Nick Frank, Capital Contributions<\/td>\r\n<td class=\"r\"><\/td>\r\n<td>20,000.00<\/td>\r\n<\/tr>\r\n<tr class=\"highlight-green\">\r\n<td>330<\/td>\r\n<td>Nick Frank, Withdrawals<\/td>\r\n<td class=\"r\">4,000.00<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr class=\"highlight-green\">\r\n<td>410<\/td>\r\n<td>Service Revenue<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">8,750.00<\/td>\r\n<\/tr>\r\n<tr class=\"highlight-green\">\r\n<td>510<\/td>\r\n<td>Insurance Expense<\/td>\r\n<td class=\"r\">1,500.00<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr class=\"highlight-green\">\r\n<td>520<\/td>\r\n<td>Rent Expense<\/td>\r\n<td class=\"r\">2,000.00<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr class=\"highlight-green\">\r\n<td>530<\/td>\r\n<td>Supplies Expense<\/td>\r\n<td class=\"r\">1,600.00<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<tr class=\"highlight-green\">\r\n<td>540<\/td>\r\n<td>Contractor Expense<\/td>\r\n<td class=\"r\">2,300.00<\/td>\r\n<td class=\"r\"><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<tfoot>\r\n<tr>\r\n<td><\/td>\r\n<td>Totals<\/td>\r\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single line<\/span> 31,550.00\r\n<span class=\"u-sr-only\">Double line<\/span><\/td>\r\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single line<\/span> 31,550.00\r\n<span class=\"u-sr-only\">Double line<\/span><\/td>\r\n<\/tr>\r\n<\/tfoot>\r\n<\/table>\r\n&nbsp;\r\n<table class=\"fin-table acctstatement\"><caption>NeatNiks\r\nBalance Sheet\r\nAs of October 31, 20XX<\/caption>\r\n<thead>\r\n<tr class=\"u-sr-only\">\r\n<th scope=\"col\">Description<\/th>\r\n<th scope=\"col\">Amount<\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr>\r\n<td colspan=\"2\"><span class=\"u-sr-only\">Subcategory, <\/span><strong>Assets<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash<\/td>\r\n<td class=\"r\">$3,500<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Accounts Receivable<\/td>\r\n<td class=\"r\">5,650<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Supplies<\/td>\r\n<td class=\"r\">1,000<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Prepaid Rent<\/td>\r\n<td class=\"r\">10,000<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Total Assets<\/td>\r\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single line<\/span>\r\n$20,150\r\n<span class=\"u-sr-only\">Double line<\/span><\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"2\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td colspan=\"2\"><span class=\"u-sr-only\">Subcategory, <\/span><strong>Liabilities<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Accounts Payable<\/td>\r\n<td class=\"r\">$1,600<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Wages Payable<\/td>\r\n<td class=\"r\">1,200<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Total Liabilities<\/td>\r\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single line<\/span>\r\n$2,800<\/td>\r\n<\/tr>\r\n<tr aria-hidden=\"true\">\r\n<td colspan=\"2\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td colspan=\"2\"><span class=\"u-sr-only\">Subcategory, <\/span><strong>Owner\u2019s Equity<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td><\/td>\r\n<td class=\"r\">17,350<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<tfoot>\r\n<tr>\r\n<td class=\"line-none\">Total Liabilities and Owner\u2019s Equity<\/td>\r\n<td class=\"r\"><span class=\"u-sr-only\">Single line<\/span>\r\n$20,150\r\n<span class=\"u-sr-only\">Double line<\/span><\/td>\r\n<\/tr>\r\n<\/tfoot>\r\n<\/table>\r\nTotal assets, at historical cost, equal $20,150. Of that amount, Nick owes $2,800 to a creditor and his independent contractors, leaving him $17,350 in equity.\r\n\r\nNow you can answer the remaining questions Nick had at the end of October:\r\n<ul>\r\n \t<li>What is Nick's equity in his business at the end of October?\r\n<ul>\r\n \t<li>$17,350<\/li>\r\n<\/ul>\r\n<\/li>\r\n \t<li>Nick wants to buy a truck for $5,000 in order to keep up with demand\u2014does he have enough cash in the bank to do that right now?\r\n<ul>\r\n \t<li>No. He only had $3,500 in the bank as of October 31. In addition, he has bills to pay that amount to $2,800 (accounts payable and contractor payable). However, once he collects his accounts receivable, he may have enough cash.<\/li>\r\n<\/ul>\r\n<\/li>\r\n \t<li>How much do customers owe Nick?\r\n<ul>\r\n \t<li>Accounts receivable are the invoices that Nick has sent out to customers that haven\u2019t been paid yet, so they owe him in total $5,650.<\/li>\r\n<\/ul>\r\n<\/li>\r\n \t<li>How much does Nick owe to his suppliers?\r\n<ul>\r\n \t<li>Accounts payable represents the amount a business owes to suppliers. In this case, Nick has purchased items on credit and still owes $1,600 to the vendors. He also owes $1,200 to workers.<\/li>\r\n<\/ul>\r\n<\/li>\r\n<\/ul>\r\n<h2>Account Format of Balance Sheets<\/h2>\r\nThe balance sheet above is reported in the common report format. There is another format, called the account format, that was more common when society was less complex. You might not ever see this format again, but here it is as an example:\r\n<table class=\"fin-table acctstatement\"><caption>NeatNiks\r\nBalance Sheet\r\nAs of October 31, 20XX<\/caption>\r\n<thead>\r\n<tr class=\"u-sr-only\">\r\n<th scope=\"col\">Description<\/th>\r\n<th scope=\"col\">Amount<\/th>\r\n<th scope=\"col\">Description<\/th>\r\n<th scope=\"col\">Amount<\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr>\r\n<td><span class=\"u-sr-only\">Subcategory, <\/span><strong>Assets<\/strong><\/td>\r\n<td><\/td>\r\n<td colspan=\"2\"><span class=\"u-sr-only\">Subcategory, <\/span><strong>Liabilities<\/strong><\/td>\r\n<td><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\u00a0\u00a0\u00a0Cash<\/td>\r\n<td class=\"r\">$3,500<\/td>\r\n<td>\u00a0\u00a0\u00a0Accounts Payable<\/td>\r\n<td class=\"r\">$1,600<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\u00a0\u00a0\u00a0Accounts Receivable<\/td>\r\n<td class=\"r\">5,650<\/td>\r\n<td>\u00a0\u00a0\u00a0Contractor Payable<\/td>\r\n<td class=\"r\">1,200<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\u00a0\u00a0\u00a0Supplies<\/td>\r\n<td class=\"r\">1,000<\/td>\r\n<td>\u00a0\u00a0\u00a0Total Liabilities<\/td>\r\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single line<\/span>\r\n$2,800<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\u00a0\u00a0\u00a0Prepaid Rent<\/td>\r\n<td class=\"r\">10,000<\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<\/tr>\r\n<tr>\r\n<td><\/td>\r\n<td><\/td>\r\n<td>Owner's Equity<\/td>\r\n<td class=\"r\">$17,350<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<tfoot>\r\n<tr>\r\n<td class=\"line-none\"><strong>Total Assets<\/strong><\/td>\r\n<td class=\"r\"><span class=\"u-sr-only\">Single line<\/span>\r\n$20,150\r\n<span class=\"u-sr-only\">Double line<\/span><\/td>\r\n<td class=\"line-none\"><strong>Total Liabilities and Owner's Equity<\/strong><\/td>\r\n<td class=\"r\"><span class=\"u-sr-only\">Single line<\/span>\r\n$20,150\r\n<span class=\"u-sr-only\">Double line<\/span><\/td>\r\n<\/tr>\r\n<\/tfoot>\r\n<\/table>\r\nNotice that assets are presented on the left, and liabilities and owner\u2019s equity on the right.\r\n\r\nThe reason you don\u2019t see this format much anymore is because it takes up so much real estate\u2014we just don\u2019t have the room to present our statements in multiple columns like that, especially because GAAP requires us to show multiple years side-by-side.\r\n\r\n<section class=\"textbox example\" aria-label=\"Example\">\r\n<h3>Huron Consulting Group<\/h3>\r\nHere\u2019s an actual income statement from Huron Consulting Group, Inc. (NASDAQ:HURN), a publicly traded consulting firm, condensed down from 26 lines to just 3, but you can see how trying to present each year with multiple columns would end up spreading it out way too far:\r\n<table class=\"fin-table acctstatement\"><caption>HURON CONSULTING GROUP, INC.\r\nCONSOLIDATED STATEMENTS OF OPERATION - condensed<\/caption>\r\n<thead>\r\n<tr>\r\n<th style=\"text-align: left;\" colspan=\"4\" scope=\"col\"><i>(in thousands of dollars)<\/i><\/th>\r\n<\/tr>\r\n<tr>\r\n<td><\/td>\r\n<th style=\"text-align: center;\" colspan=\"3\" scope=\"col\">Year Ended December 31,<\/th>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"col\"><span class=\"u-sr-only\">Description<\/span><\/th>\r\n<th class=\"r\" scope=\"col\">2019<\/th>\r\n<th class=\"r\" scope=\"col\">2018<\/th>\r\n<th class=\"r\" scope=\"col\">2017<\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr>\r\n<th scope=\"row\">Revenues<\/th>\r\n<td class=\"r\">$965,474<\/td>\r\n<td class=\"r\">$877,999<\/td>\r\n<td class=\"r\">$807,745<\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"row\">Expenses<\/th>\r\n<td class=\"r\">923,731<\/td>\r\n<td class=\"r\">864,353<\/td>\r\n<td class=\"r\">923,731<\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"row\">Net income (loss)<\/th>\r\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$41,743<span class=\"u-sr-only\">Double Line<\/span><\/td>\r\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$13,646<span class=\"u-sr-only\">Double Line<\/span><\/td>\r\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$(107,117)<span class=\"u-sr-only\">Double Line<\/span><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nAnd here are the balance sheets, once again condensed down from about twice this many line items. Notice how impossible it would be to present these in the account format, so that\u2019s why the report format (assets first, then liabilities, and finally the equity, top to bottom) is so much more widely used.\r\n\r\n<span class=\"u-sr-only\">Subcategory,<\/span><strong>Assets<\/strong>\r\n<table class=\"fin-table acctstatement\"><caption>HURON CONSULTING GROUP, INC.\r\nCONSOLIDATED BALANCE SHEETS - condensed<\/caption>\r\n<thead>\r\n<tr>\r\n<th style=\"text-align: left;\" colspan=\"3\" scope=\"col\"><i>(in thousands of dollars)<\/i><\/th>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"col\"><span class=\"u-sr-only\">Description<\/span><\/th>\r\n<th scope=\"col\">December 31, 2019<\/th>\r\n<th scope=\"col\">December 31, 2018<\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr>\r\n<td colspan=\"3\">Current assets:<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash and cash equivalents<\/td>\r\n<td class=\"r\">$ 11,604<\/td>\r\n<td class=\"r\">$ 33,107<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Receivables from clients, net<\/td>\r\n<td class=\"r\">116,571<\/td>\r\n<td class=\"r\">109,677<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Unbilled services, net<\/td>\r\n<td class=\"r\">79,937<\/td>\r\n<td class=\"r\">69,613<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Income tax receivable<\/td>\r\n<td class=\"r\">2,376<\/td>\r\n<td class=\"r\">6,612<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Prepaid expenses and other current assets<\/td>\r\n<td class=\"r\">14,248<\/td>\r\n<td class=\"r\">13,922<\/td>\r\n<\/tr>\r\n<tr>\r\n<td><strong>Total current assets<\/strong><\/td>\r\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>$ 224,736<\/td>\r\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>$ 232,931<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Property and equipment, net<\/td>\r\n<td class=\"r\">38,413<\/td>\r\n<td class=\"r\">40,374<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Other non-current assets<\/td>\r\n<td class=\"r\">841,122<\/td>\r\n<td class=\"r\">776,227<\/td>\r\n<\/tr>\r\n<tr>\r\n<td><strong>Total assets<\/strong><\/td>\r\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$ 1,104,271<span class=\"u-sr-only\">Double Line<\/span><\/td>\r\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$ 1,049,532<span class=\"u-sr-only\">Double Line<\/span><\/td>\r\n<\/tr>\r\n<tr>\r\n<td colspan=\"3\"><span class=\"u-sr-only\">Subcategory,<\/span><strong>Liabilities and stockholders\u2019 equity<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td colspan=\"3\">Current liabilities:<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Accounts payable<\/td>\r\n<td class=\"r\">$ 7,944<\/td>\r\n<td class=\"r\">$ 10,020<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Accrued expenses and other current liabilities<\/td>\r\n<td class=\"r\">54,995<\/td>\r\n<td class=\"r\">298,460<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Accrued payroll and related benefits<\/td>\r\n<td class=\"r\">141,605<\/td>\r\n<td class=\"r\">109,825<\/td>\r\n<\/tr>\r\n<tr>\r\n<td><strong>Total current liabilities<\/strong><\/td>\r\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>$ 204,544<\/td>\r\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>$ 418,305<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Long-term debt, net of current portion<\/td>\r\n<td class=\"r\">314,262<\/td>\r\n<td class=\"r\">90,603<\/td>\r\n<\/tr>\r\n<tr>\r\n<td><strong>Total liabilities<\/strong><\/td>\r\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>$ 518,806<\/td>\r\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>$ 508,908<\/td>\r\n<\/tr>\r\n<tr>\r\n<td><strong>Total stockholders\u2019 equity<\/strong><\/td>\r\n<td class=\"r\">585,465<\/td>\r\n<td class=\"r\">540,624<\/td>\r\n<\/tr>\r\n<tr>\r\n<td><strong>Total liabilities and stockholders\u2019 equity<\/strong><\/td>\r\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$ 1,104,271<span class=\"u-sr-only\">Double Line<\/span><\/td>\r\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$ 1,049,532<span class=\"u-sr-only\">Double Line<\/span><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nWe won\u2019t look at the statement of stockholders\u2019 equity (owners of a corporation are called stockholders)\u2014not yet anyway. We will look at that statement more closely in a later module on corporations. You can also check out <a href=\"https:\/\/ir.huronconsultinggroup.com\/financial-information\/annual-reports\" target=\"_blank\" rel=\"noopener\">Huron Consulting Group's full annual report<\/a>.\r\n\r\nAs a publicly traded company, Huron Consulting Group is required to publish the financials and make them available to the public, and so they must follow GAAP and file their report with the SEC (Form 10-K) every year.\r\n\r\nAlso, notice that these numbers are rounded to the nearest thousand, so the actual amount of assets this company owns is in excess of $1 billion. Do assets equal liabilities plus owners\u2019 equity?\u00a0 (The answer had better be a resounding \u201cyes\u201d.)\r\n\r\n<\/section>The income statement, statement of owner\u2019s equity, and balance sheet give you a lot of information about a company. There are actually several more statements that deal with specific issues that we will cover later, but one more common statement is the statement of cash flows, introduced in the next section and covered in more detail later.\r\n\r\n<section class=\"textbox watchIt\" aria-label=\"Watch It\">First, let\u2019s review the three basic financials and then you can check your understanding of the balance sheet.<iframe src=\"\/\/plugin.3playmedia.com\/show?mf=5475487&amp;p3sdk_version=1.10.1&amp;p=20361&amp;pt=375&amp;video_id=lWFdvdYOI1I&amp;video_target=tpm-plugin-u7n8zlsu-lWFdvdYOI1I\" width=\"800px\" height=\"450px\" frameborder=\"0\" marginwidth=\"0px\" marginheight=\"0px\" data-mce-fragment=\"1\"><\/iframe>You can view the <a href=\"https:\/\/course-building.s3-us-west-2.amazonaws.com\/Financial+Accounting\/Transcripts\/PreparingTheFinancialStatements_transcript.txt\" target=\"_blank\" rel=\"noopener\">transcript for \"Preparing the Financial Statements (Financial Accounting Tutorial #25)\" here (opens in new window)<\/a>.<\/section><section class=\"textbox tryIt\" aria-label=\"Try It\">[ohm2_question hide_question_numbers=1]25320[\/ohm2_question][ohm_question]203083[\/ohm_question]<\/section>","rendered":"<section class=\"textbox learningGoals\" aria-label=\"Learning Goals\">\n<ul>\n<li>Prepare a balance sheet<\/li>\n<\/ul>\n<\/section>\n<p>&nbsp;<\/p>\n<p>The balance sheet shows the accounting equation: [latex]\\text{A}=\\text{L}+\\text{E}[\/latex].<\/p>\n<p>You&#8217;ve already calculated owner\u2019s equity on the Statement of Owner\u2019s Equity as $17,350, so now let&#8217;s account for the assets and liabilities.<\/p>\n<p>First, list out the assets (in blue and numbered in the 100s) from the adjusted trial balance, the liabilities (in red and numbered in the 200s), and the equity total (in green and numbered in the 300s, 400s, and 500s).<\/p>\n<table class=\"fin-table gridded\">\n<caption>NeatNiks<br \/>\nAdjusted Trial Balance<br \/>\nFor the month ended October 31, 20XX<\/caption>\n<thead>\n<tr>\n<th rowspan=\"2\" scope=\"col\"><span class=\"u-sr-only\">Reference No.<\/span><\/th>\n<th rowspan=\"2\" scope=\"col\"><span class=\"u-sr-only\">Accounts<\/span><\/th>\n<th colspan=\"2\" scope=\"col\">Adjusted trial balance<\/th>\n<\/tr>\n<tr>\n<th scope=\"col\">Debits<\/th>\n<th scope=\"col\">Credits<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr class=\"highlight-blue\">\n<td>110<\/td>\n<td>Checking<\/td>\n<td class=\"r\">3,500.00<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr class=\"highlight-blue\">\n<td>120<\/td>\n<td>Accounts Receivable<\/td>\n<td class=\"r\">5,650.00<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr class=\"highlight-blue\">\n<td>125<\/td>\n<td>Supplies<\/td>\n<td class=\"r\">1,000.00<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr class=\"highlight-blue\">\n<td>130<\/td>\n<td>Prepaid Rent<\/td>\n<td class=\"r\">10,000.00<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr class=\"highlight-red\">\n<td>210<\/td>\n<td>Account Payable<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">1,600.00<\/td>\n<\/tr>\n<tr class=\"highlight-red\">\n<td>220<\/td>\n<td>Contractor Payable<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">1,200.00<\/td>\n<\/tr>\n<tr class=\"highlight-green\">\n<td>310<\/td>\n<td class=\"r\">Nick Frank, Capital Contributions<\/td>\n<td class=\"r\"><\/td>\n<td>20,000.00<\/td>\n<\/tr>\n<tr class=\"highlight-green\">\n<td>330<\/td>\n<td>Nick Frank, Withdrawals<\/td>\n<td class=\"r\">4,000.00<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr class=\"highlight-green\">\n<td>410<\/td>\n<td>Service Revenue<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">8,750.00<\/td>\n<\/tr>\n<tr class=\"highlight-green\">\n<td>510<\/td>\n<td>Insurance Expense<\/td>\n<td class=\"r\">1,500.00<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr class=\"highlight-green\">\n<td>520<\/td>\n<td>Rent Expense<\/td>\n<td class=\"r\">2,000.00<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr class=\"highlight-green\">\n<td>530<\/td>\n<td>Supplies Expense<\/td>\n<td class=\"r\">1,600.00<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<tr class=\"highlight-green\">\n<td>540<\/td>\n<td>Contractor Expense<\/td>\n<td class=\"r\">2,300.00<\/td>\n<td class=\"r\"><\/td>\n<\/tr>\n<\/tbody>\n<tfoot>\n<tr>\n<td><\/td>\n<td>Totals<\/td>\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single line<\/span> 31,550.00<br \/>\n<span class=\"u-sr-only\">Double line<\/span><\/td>\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single line<\/span> 31,550.00<br \/>\n<span class=\"u-sr-only\">Double line<\/span><\/td>\n<\/tr>\n<\/tfoot>\n<\/table>\n<p>&nbsp;<\/p>\n<table class=\"fin-table acctstatement\">\n<caption>NeatNiks<br \/>\nBalance Sheet<br \/>\nAs of October 31, 20XX<\/caption>\n<thead>\n<tr class=\"u-sr-only\">\n<th scope=\"col\">Description<\/th>\n<th scope=\"col\">Amount<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td colspan=\"2\"><span class=\"u-sr-only\">Subcategory, <\/span><strong>Assets<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Cash<\/td>\n<td class=\"r\">$3,500<\/td>\n<\/tr>\n<tr>\n<td>Accounts Receivable<\/td>\n<td class=\"r\">5,650<\/td>\n<\/tr>\n<tr>\n<td>Supplies<\/td>\n<td class=\"r\">1,000<\/td>\n<\/tr>\n<tr>\n<td>Prepaid Rent<\/td>\n<td class=\"r\">10,000<\/td>\n<\/tr>\n<tr>\n<td>Total Assets<\/td>\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single line<\/span><br \/>\n$20,150<br \/>\n<span class=\"u-sr-only\">Double line<\/span><\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\"><span class=\"u-sr-only\">Subcategory, <\/span><strong>Liabilities<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Accounts Payable<\/td>\n<td class=\"r\">$1,600<\/td>\n<\/tr>\n<tr>\n<td>Wages Payable<\/td>\n<td class=\"r\">1,200<\/td>\n<\/tr>\n<tr>\n<td>Total Liabilities<\/td>\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single line<\/span><br \/>\n$2,800<\/td>\n<\/tr>\n<tr aria-hidden=\"true\">\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\"><span class=\"u-sr-only\">Subcategory, <\/span><strong>Owner\u2019s Equity<\/strong><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td class=\"r\">17,350<\/td>\n<\/tr>\n<\/tbody>\n<tfoot>\n<tr>\n<td class=\"line-none\">Total Liabilities and Owner\u2019s Equity<\/td>\n<td class=\"r\"><span class=\"u-sr-only\">Single line<\/span><br \/>\n$20,150<br \/>\n<span class=\"u-sr-only\">Double line<\/span><\/td>\n<\/tr>\n<\/tfoot>\n<\/table>\n<p>Total assets, at historical cost, equal $20,150. Of that amount, Nick owes $2,800 to a creditor and his independent contractors, leaving him $17,350 in equity.<\/p>\n<p>Now you can answer the remaining questions Nick had at the end of October:<\/p>\n<ul>\n<li>What is Nick&#8217;s equity in his business at the end of October?\n<ul>\n<li>$17,350<\/li>\n<\/ul>\n<\/li>\n<li>Nick wants to buy a truck for $5,000 in order to keep up with demand\u2014does he have enough cash in the bank to do that right now?\n<ul>\n<li>No. He only had $3,500 in the bank as of October 31. In addition, he has bills to pay that amount to $2,800 (accounts payable and contractor payable). However, once he collects his accounts receivable, he may have enough cash.<\/li>\n<\/ul>\n<\/li>\n<li>How much do customers owe Nick?\n<ul>\n<li>Accounts receivable are the invoices that Nick has sent out to customers that haven\u2019t been paid yet, so they owe him in total $5,650.<\/li>\n<\/ul>\n<\/li>\n<li>How much does Nick owe to his suppliers?\n<ul>\n<li>Accounts payable represents the amount a business owes to suppliers. In this case, Nick has purchased items on credit and still owes $1,600 to the vendors. He also owes $1,200 to workers.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2>Account Format of Balance Sheets<\/h2>\n<p>The balance sheet above is reported in the common report format. There is another format, called the account format, that was more common when society was less complex. You might not ever see this format again, but here it is as an example:<\/p>\n<table class=\"fin-table acctstatement\">\n<caption>NeatNiks<br \/>\nBalance Sheet<br \/>\nAs of October 31, 20XX<\/caption>\n<thead>\n<tr class=\"u-sr-only\">\n<th scope=\"col\">Description<\/th>\n<th scope=\"col\">Amount<\/th>\n<th scope=\"col\">Description<\/th>\n<th scope=\"col\">Amount<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><span class=\"u-sr-only\">Subcategory, <\/span><strong>Assets<\/strong><\/td>\n<td><\/td>\n<td colspan=\"2\"><span class=\"u-sr-only\">Subcategory, <\/span><strong>Liabilities<\/strong><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td>\u00a0\u00a0\u00a0Cash<\/td>\n<td class=\"r\">$3,500<\/td>\n<td>\u00a0\u00a0\u00a0Accounts Payable<\/td>\n<td class=\"r\">$1,600<\/td>\n<\/tr>\n<tr>\n<td>\u00a0\u00a0\u00a0Accounts Receivable<\/td>\n<td class=\"r\">5,650<\/td>\n<td>\u00a0\u00a0\u00a0Contractor Payable<\/td>\n<td class=\"r\">1,200<\/td>\n<\/tr>\n<tr>\n<td>\u00a0\u00a0\u00a0Supplies<\/td>\n<td class=\"r\">1,000<\/td>\n<td>\u00a0\u00a0\u00a0Total Liabilities<\/td>\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single line<\/span><br \/>\n$2,800<\/td>\n<\/tr>\n<tr>\n<td>\u00a0\u00a0\u00a0Prepaid Rent<\/td>\n<td class=\"r\">10,000<\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><\/td>\n<td>Owner&#8217;s Equity<\/td>\n<td class=\"r\">$17,350<\/td>\n<\/tr>\n<\/tbody>\n<tfoot>\n<tr>\n<td class=\"line-none\"><strong>Total Assets<\/strong><\/td>\n<td class=\"r\"><span class=\"u-sr-only\">Single line<\/span><br \/>\n$20,150<br \/>\n<span class=\"u-sr-only\">Double line<\/span><\/td>\n<td class=\"line-none\"><strong>Total Liabilities and Owner&#8217;s Equity<\/strong><\/td>\n<td class=\"r\"><span class=\"u-sr-only\">Single line<\/span><br \/>\n$20,150<br \/>\n<span class=\"u-sr-only\">Double line<\/span><\/td>\n<\/tr>\n<\/tfoot>\n<\/table>\n<p>Notice that assets are presented on the left, and liabilities and owner\u2019s equity on the right.<\/p>\n<p>The reason you don\u2019t see this format much anymore is because it takes up so much real estate\u2014we just don\u2019t have the room to present our statements in multiple columns like that, especially because GAAP requires us to show multiple years side-by-side.<\/p>\n<section class=\"textbox example\" aria-label=\"Example\">\n<h3>Huron Consulting Group<\/h3>\n<p>Here\u2019s an actual income statement from Huron Consulting Group, Inc. (NASDAQ:HURN), a publicly traded consulting firm, condensed down from 26 lines to just 3, but you can see how trying to present each year with multiple columns would end up spreading it out way too far:<\/p>\n<table class=\"fin-table acctstatement\">\n<caption>HURON CONSULTING GROUP, INC.<br \/>\nCONSOLIDATED STATEMENTS OF OPERATION &#8211; condensed<\/caption>\n<thead>\n<tr>\n<th style=\"text-align: left;\" colspan=\"4\" scope=\"col\"><i>(in thousands of dollars)<\/i><\/th>\n<\/tr>\n<tr>\n<td><\/td>\n<th style=\"text-align: center;\" colspan=\"3\" scope=\"col\">Year Ended December 31,<\/th>\n<\/tr>\n<tr>\n<th scope=\"col\"><span class=\"u-sr-only\">Description<\/span><\/th>\n<th class=\"r\" scope=\"col\">2019<\/th>\n<th class=\"r\" scope=\"col\">2018<\/th>\n<th class=\"r\" scope=\"col\">2017<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<th scope=\"row\">Revenues<\/th>\n<td class=\"r\">$965,474<\/td>\n<td class=\"r\">$877,999<\/td>\n<td class=\"r\">$807,745<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">Expenses<\/th>\n<td class=\"r\">923,731<\/td>\n<td class=\"r\">864,353<\/td>\n<td class=\"r\">923,731<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">Net income (loss)<\/th>\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$41,743<span class=\"u-sr-only\">Double Line<\/span><\/td>\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$13,646<span class=\"u-sr-only\">Double Line<\/span><\/td>\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$(107,117)<span class=\"u-sr-only\">Double Line<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>And here are the balance sheets, once again condensed down from about twice this many line items. Notice how impossible it would be to present these in the account format, so that\u2019s why the report format (assets first, then liabilities, and finally the equity, top to bottom) is so much more widely used.<\/p>\n<p><span class=\"u-sr-only\">Subcategory,<\/span><strong>Assets<\/strong><\/p>\n<table class=\"fin-table acctstatement\">\n<caption>HURON CONSULTING GROUP, INC.<br \/>\nCONSOLIDATED BALANCE SHEETS &#8211; condensed<\/caption>\n<thead>\n<tr>\n<th style=\"text-align: left;\" colspan=\"3\" scope=\"col\"><i>(in thousands of dollars)<\/i><\/th>\n<\/tr>\n<tr>\n<th scope=\"col\"><span class=\"u-sr-only\">Description<\/span><\/th>\n<th scope=\"col\">December 31, 2019<\/th>\n<th scope=\"col\">December 31, 2018<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td colspan=\"3\">Current assets:<\/td>\n<\/tr>\n<tr>\n<td>Cash and cash equivalents<\/td>\n<td class=\"r\">$ 11,604<\/td>\n<td class=\"r\">$ 33,107<\/td>\n<\/tr>\n<tr>\n<td>Receivables from clients, net<\/td>\n<td class=\"r\">116,571<\/td>\n<td class=\"r\">109,677<\/td>\n<\/tr>\n<tr>\n<td>Unbilled services, net<\/td>\n<td class=\"r\">79,937<\/td>\n<td class=\"r\">69,613<\/td>\n<\/tr>\n<tr>\n<td>Income tax receivable<\/td>\n<td class=\"r\">2,376<\/td>\n<td class=\"r\">6,612<\/td>\n<\/tr>\n<tr>\n<td>Prepaid expenses and other current assets<\/td>\n<td class=\"r\">14,248<\/td>\n<td class=\"r\">13,922<\/td>\n<\/tr>\n<tr>\n<td><strong>Total current assets<\/strong><\/td>\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>$ 224,736<\/td>\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>$ 232,931<\/td>\n<\/tr>\n<tr>\n<td>Property and equipment, net<\/td>\n<td class=\"r\">38,413<\/td>\n<td class=\"r\">40,374<\/td>\n<\/tr>\n<tr>\n<td>Other non-current assets<\/td>\n<td class=\"r\">841,122<\/td>\n<td class=\"r\">776,227<\/td>\n<\/tr>\n<tr>\n<td><strong>Total assets<\/strong><\/td>\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$ 1,104,271<span class=\"u-sr-only\">Double Line<\/span><\/td>\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$ 1,049,532<span class=\"u-sr-only\">Double Line<\/span><\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\"><span class=\"u-sr-only\">Subcategory,<\/span><strong>Liabilities and stockholders\u2019 equity<\/strong><\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">Current liabilities:<\/td>\n<\/tr>\n<tr>\n<td>Accounts payable<\/td>\n<td class=\"r\">$ 7,944<\/td>\n<td class=\"r\">$ 10,020<\/td>\n<\/tr>\n<tr>\n<td>Accrued expenses and other current liabilities<\/td>\n<td class=\"r\">54,995<\/td>\n<td class=\"r\">298,460<\/td>\n<\/tr>\n<tr>\n<td>Accrued payroll and related benefits<\/td>\n<td class=\"r\">141,605<\/td>\n<td class=\"r\">109,825<\/td>\n<\/tr>\n<tr>\n<td><strong>Total current liabilities<\/strong><\/td>\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>$ 204,544<\/td>\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>$ 418,305<\/td>\n<\/tr>\n<tr>\n<td>Long-term debt, net of current portion<\/td>\n<td class=\"r\">314,262<\/td>\n<td class=\"r\">90,603<\/td>\n<\/tr>\n<tr>\n<td><strong>Total liabilities<\/strong><\/td>\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>$ 518,806<\/td>\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>$ 508,908<\/td>\n<\/tr>\n<tr>\n<td><strong>Total stockholders\u2019 equity<\/strong><\/td>\n<td class=\"r\">585,465<\/td>\n<td class=\"r\">540,624<\/td>\n<\/tr>\n<tr>\n<td><strong>Total liabilities and stockholders\u2019 equity<\/strong><\/td>\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$ 1,104,271<span class=\"u-sr-only\">Double Line<\/span><\/td>\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$ 1,049,532<span class=\"u-sr-only\">Double Line<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>We won\u2019t look at the statement of stockholders\u2019 equity (owners of a corporation are called stockholders)\u2014not yet anyway. We will look at that statement more closely in a later module on corporations. You can also check out <a href=\"https:\/\/ir.huronconsultinggroup.com\/financial-information\/annual-reports\" target=\"_blank\" rel=\"noopener\">Huron Consulting Group&#8217;s full annual report<\/a>.<\/p>\n<p>As a publicly traded company, Huron Consulting Group is required to publish the financials and make them available to the public, and so they must follow GAAP and file their report with the SEC (Form 10-K) every year.<\/p>\n<p>Also, notice that these numbers are rounded to the nearest thousand, so the actual amount of assets this company owns is in excess of $1 billion. Do assets equal liabilities plus owners\u2019 equity?\u00a0 (The answer had better be a resounding \u201cyes\u201d.)<\/p>\n<\/section>\n<p>The income statement, statement of owner\u2019s equity, and balance sheet give you a lot of information about a company. There are actually several more statements that deal with specific issues that we will cover later, but one more common statement is the statement of cash flows, introduced in the next section and covered in more detail later.<\/p>\n<section class=\"textbox watchIt\" aria-label=\"Watch It\">First, let\u2019s review the three basic financials and then you can check your understanding of the balance sheet.<iframe loading=\"lazy\" src=\"\/\/plugin.3playmedia.com\/show?mf=5475487&amp;p3sdk_version=1.10.1&amp;p=20361&amp;pt=375&amp;video_id=lWFdvdYOI1I&amp;video_target=tpm-plugin-u7n8zlsu-lWFdvdYOI1I\" width=\"800px\" height=\"450px\" frameborder=\"0\" marginwidth=\"0px\" marginheight=\"0px\" data-mce-fragment=\"1\"><\/iframe>You can view the <a href=\"https:\/\/course-building.s3-us-west-2.amazonaws.com\/Financial+Accounting\/Transcripts\/PreparingTheFinancialStatements_transcript.txt\" target=\"_blank\" rel=\"noopener\">transcript for &#8220;Preparing the Financial Statements (Financial Accounting Tutorial #25)&#8221; here (opens in new window)<\/a>.<\/section>\n<section class=\"textbox tryIt\" aria-label=\"Try It\"><iframe loading=\"lazy\" id=\"ohm25320\" class=\"resizable\" src=\"https:\/\/ohm.one.lumenlearning.com\/multiembedq.php?id=25320&theme=lumen&iframe_resize_id=ohm25320&source=tnh\" width=\"100%\" height=\"150\"><\/iframe><iframe loading=\"lazy\" id=\"ohm203083\" class=\"resizable\" src=\"https:\/\/ohm.lumenlearning.com\/multiembedq.php?id=203083&theme=lumen&iframe_resize_id=ohm203083&source=tnh&show_question_numbers\" width=\"100%\" height=\"150\"><\/iframe><\/section>\n","protected":false},"author":6,"menu_order":15,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Balance Sheet\",\"author\":\"Joseph Cooke\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"copyrighted_video\",\"description\":\"Preparing the Financial Statements\",\"author\":\"Note Pirate\",\"organization\":\"\",\"url\":\"https:\/\/youtu.be\/lWFdvdYOI1\",\"project\":\"\",\"license\":\"arr\",\"license_terms\":\"Standard YouTube License\"}]","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"part":114,"module-header":"- Select Header -","content_attributions":[{"type":"original","description":"Balance Sheet","author":"Joseph Cooke","organization":"Lumen Learning","url":"","project":"","license":"cc-by","license_terms":""},{"type":"copyrighted_video","description":"Preparing the Financial Statements","author":"Note Pirate","organization":"","url":"https:\/\/youtu.be\/lWFdvdYOI1","project":"","license":"arr","license_terms":"Standard YouTube License"}],"internal_book_links":[],"video_content":null,"cc_video_embed_content":{"cc_scripts":"","media_targets":[]},"try_it_collection":null,"_links":{"self":[{"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/pressbooks\/v2\/chapters\/129"}],"collection":[{"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/wp\/v2\/users\/6"}],"version-history":[{"count":5,"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/pressbooks\/v2\/chapters\/129\/revisions"}],"predecessor-version":[{"id":1086,"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/pressbooks\/v2\/chapters\/129\/revisions\/1086"}],"part":[{"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/pressbooks\/v2\/parts\/114"}],"metadata":[{"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/pressbooks\/v2\/chapters\/129\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/wp\/v2\/media?parent=129"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/pressbooks\/v2\/chapter-type?post=129"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/wp\/v2\/contributor?post=129"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/wp\/v2\/license?post=129"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}