Stock Is Listed on the Balance Sheet

¶ … Stock is listed on the Balance Sheet under Stockholder's Equity. Common Stock is an equity account. The balance of this account represents the total value of all the company's outstanding common stock. Common Stock is owned by stockholders who hold rights to the company's assets. If the company liquidates the stockholders are entitled to the assets after all other obligations have been paid and the remainder divided based on the type of stock and how many shares the stockholder owns.

Equipment is listed on the Balance Sheet under the under Long-Term Assets. This is an asset account. The balance of this account represents all the equipment owned by a company that is used in the course of operations and is not sold as inventory. The balance of this account represents the balance of the Equipment Account less the Accumulated Depreciation of the assets.

Accounts Receivable is located on the Balance Sheet under Current Assets. It is an asset account. The balance of this account represents all money that is owed by customers who have bought inventory on credit. The balance of this account decreases as customers pay their bills and increases as customers purchase more products or services on credit.

Accounts Payable is located on the Balance Sheet under Current Liabilities. It is a liability account. The balance of this account represents the total of all money the company owes to creditors that is due within a year. The balance of this account will decrease as the company pays money owed and increases as the company purchases on credit.

The Sales account is located on the Income Statement and is a revenue account. The balance of this account represents the total amount of all the sales of merchandise or services minus any sales returns from inventory being returned from customers. It includes sales that were made with cash and sales that were made on account. The balance of this account increases during the period and is closed out at the end of the period to have a zero balance at the beginning of the following period.

The Cost of Goods Sold account is an expense account located on the Income Statement. The balance of this account represents product costs of sold products, variable costs, and variable overhead cost. The balance of this account increases during the period and is closed out at the end of the period to show a zero balance at the beginning of the following period.