Specifications

Computer Tutorial 3 Lesson 6  5
EXHIBIT 6-4
Balance sheet with bank accounts combined
4. In this manner, combine the following accounts:
Prepaid insurance, Prepaid rent, and Prepayment AP purchases into one account called
Prepaids.
Prepayment liability, Accts payable clearing, and Accrued liabilities into one account
called Accrued liabilities.
EI payable, CPP payable, Federal tax payable, Employee benefits payable, Employee
pension payable, and Employee deductions payable into one account called Employee
deductions payable.
County sales tax payable, State sales tax payable, Corp. income taxes payable, Canadian
GST collected, Canadian GST input tax credit, Provincial Sales Tax, VAT United
Kingdom, and Japanese sales / purchase tax into one account called Taxes payable.
(Although this level of aggregation is probably inappropriate for external reporting
purposes, it will help to simplify your balance sheet.)
Long-term debt proceeds and Long-term debt payments into one account called Long-
term debt.
Retained earnings and Profit (loss) for period into one account called Retained earnings.
5. As there are no accounts under the Other Asset section, you can delete this section from
the spreadsheet.
When complete, your balance sheet should look like Exhibit 6-5.