In this activity, students will have an opportunity to prepare an income statement, statement of owner's equity and (classified) balance sheet for a service business. Students are provided with a list of accounts in alphabetical order and asked to prepare the statements.
The resource includes a full solution in Excel. The classified balance sheet is presented in report format (one-column) as well as two-column. Accounts include depreciation, accumulated depreciation and current and long-term liabilities.
Students could start the activity by being asked to identify the type of account (e.g. asset, liability, etc.) from the list of accounts provided.