 Excel Accounting Practice Problem Financial Statement Creation. Get ready because it's time to excel. Here we are in our Excel worksheet. In prior presentations, we constructed the Excel worksheet from a blank sheet now using it in order to enter transactions to tabs down below example and practice the example tab in essence being an answer key. Let's take a look at it now. So in prior presentations, we've been entering the beginning transactions. Imagine that this is our beginning balances that we want to enter into the system start entering new transactions from that point forward. We have entered the inventory, the accounts receivable and the accounts payable into our trial balance. Now we want to start to think about constructing the financial statements as we go. Obviously the only financial statement thus far is in essence going to be the balance sheet because we don't have any income statement activity yet. We put that all the way to the right on our worksheet. We're going to be constructing it way over here, which means we're going to practice hiding sales to get way over here to take a look at the construction of our balance sheet. Let's go back on over to the P to the practice tab and then I'm going to hide some sales. I want to hide some sales. So I got my trial balance right next to where we're going to be constructing the financial statement. So I'm going to put my cursor on the skinny column, the skinny J skinny J. I knew a skinny J one time. He's still pretty skinny, but he's not as skinny as he used to be. So any case, we're going to go over here to BZ. We're going to right click and we're going to hide those. So we're going to hide that hide. And so now we got this side by side. Let's make this another skinny, a skinny CA skinny California skinny CA California is huge. It's not skinny, but whatever. Here we go. We're going to say then it's going to be the balance sheet, balance sheet. And then let's make, let's make some of it just black up top. So we have some, some items just to note that that's the heading. So I'm going to make that our standard black and white for the head to err black and white. So there we go. And then we'll typically have just the assets, liabilities and equity, which we could stack on top of each other, or we can do a side by side. And so a lot of software will stack it like the assets on top and then liabilities and equity on the bottom, because that's a nice vertical analysis when you're in a situation where your screen is kind of your scrunching space this way. But oftentimes people like to see it where it's sprawled out where the assets equal the liabilities and equity. So you could see two sides of kind of like a big T account. So I'm actually going to construct it that way with with the assets on the left liabilities and equity on the right. So let's start, we're going to have the assets here. And we might want to make that as a color. I'm going to make it like this same formatting by paintbrush in that green, put that green on my paintbrush and put it right there. And then we're going to say we usually have a sub category of current assets, those are going to be more liquid assets. So and in accounting software, it'll often name the account types as current assets. So in other words, if I was to put these accounts into software, like a QuickBooks software would have a special name for the checking account, and the cash accounts, because they want to have a ledger, but they would also be a current asset type of accounts accounts receivable would have a special account, but also a current asset, I believe inventory then would simply be under the designation of an account type of a current asset asset type of account generally. But they're all going to be current assets and note, I don't need a special sub categorization for like the checking account in our worksheet, because it's just a current asset, which really should go under basically cash, we should even rename it under financial accounting to just call it this should be grouped up in the category of cash. But we're just going to, we're going to call that the checking account. We don't need us another category for accounts receivable. It's just a current asset. If you see sub categories of these accounts, other than current assets in software, it's probably because the software is using these accounts in a different way needs needs to have special uses for those accounts, therefore creating another category that's not usually on a financial statement as a sub category type of account. Okay, in any case, we're going to say this is going to be cash equal to the cash. And so do I want to build this whole thing out? Let's just add all the accounts here, then this one's going to be the accounts receivable, I was going to build it as we go, but let's just build the whole thing out accounts receivable. And then this one is also a current asset on the inventory. So then I'm going to, I'm going to make this sell a little bit larger between the CB and the CC, make it a bit larger. And we're going to call that total current assets. Let's do our indentation stuff here. So I'm going to, I'm going to say that this this is current assets, meaning it's a sub category indicated by the colon, I'm also going to show it's a sub category by indenting it going to the alignment group and indenting it. And then I'm going to show it's a sub category by putting my information into an inner column, which I'll sum up in the outer column, but a bit overkill on the fact that it's going to be current. And I'm going to pick up that zero, which will pick it up and change once we complete it. I'm going to say this is going to be equal to the 20,500. And this one's going to be equal to the 2896. And then I'll underline it here, home tap font group underline. Let's do another indentation on the total down here alignment indentation. And then we'll sum up in the CD column. CDs are almost obsolete these days, aren't they? Because now we got like other stuff streaming stuff. I don't even use my CD player anymore. Whatever. I had a cassette player once. Any case, let's do the next one. Then we're going to say that's the total current assets. And then we could just have the total assets because we don't have any long term. Oh, yeah, we got property planting equipment. So let's say property, plants, let's just say plant and equipment. And colon. Now the property planting equipment might be called depreciable asset, it might just be called fixed assets. This is something that would have a separate category as you can see a normal financial statement reporting and software will often call it something different. So if I was to add these accounts into the accounting software, they would probably need to be categorized with a special asset category type like