Balance Sheet

A balance sheet, also known as a "statement of financial position", reveals a company's Assets, Liabilities and owners Equity (net worth). The balance sheet, together with the Income Statement and Cash Flow Statement, make up the cornerstone of any company's financial statements.

Assets		Liabilities and Owners' Equity
Cash	\$6,600	Liabilities
Accounts Receivable	\$6200	Current Liabilities
		Accounts Payable
		Long-term Liabilities
		Notes Payable	\$30000
		Total liabilities	\$30,000
Tools and equipment	\$25,000	Owners' Equity
		Capital stock	\$7000
		Retained Earnings	\$800
Total Assets	\$37800	Total Liabilities and Equity	\$37800

The main formula behind balance sheets is: ${\text{Assets}}={\text{Liabilities}}+{\text{Shareholders' Equity}}$

This means that assets, or the means used to operate the company, are balanced by a company's financial obligations along with the equity investment brought into the company and its retained earnings.

Source: http://www.investopedia.com/articles/04/031004.asp