The next element of your opening balance sheet includes liabilities, long and short-term liabilities, notes and mortgages payable to determine your net profit and owner's equity or capital. Keep in mind, you want to have a positive capital on your opening balance sheet.
Accounts Payable - Even new businesses may have accounts payables due from inventory and advertising expenses incurred prior to opening day. Existing businesses may inherit the old owner's accounts payable depending on how you structured the deal.
Sales Taxes Payable - If you owe sales tax on any items you purchased, the amount will go here. You should not agree to pay any upaid sales taxes from an existing business.
Payroll Taxes Payable - New business should estimate from their anticipated payroll what payroll taxes will be due. Read about 941 payroll taxes in the article, What You Need to Know About 941 Employee Taxes. Existing businesses can determine payroll taxes payable from the prior owner.
Accrued Wages Payable - New business owners who have no payroll on opening day, but will pay employees in one or two weeks can estimate this amount based on offered salaries. Existing businesses can get this amount from the prior owner's financial records.
Unearned Revenues - If you have paid a vendor to install new vendor shelves, this is considered to be an unearned revenue. Items like this will go in this field.
Short-Term Notes Payable - If you borrowed money from an individual, your family trust or some other source other than a bank and have to pay it back, the amount goes here. Short term notes are ones you expect to pay off in less than five years.
Short-Term Bank Loan Payable - If you borrow money from a bank or anticipate borrowing money from a bank, the amount should be placed in this field. If you are applying for a loan from a specific lender, make sure to include this on your opening day balance sheet, even if you don't have the loan on opening day. Your lender will expect to see it on your balance sheet. Keep in mind that short term loans are loans you expect to repay in less than five years. If you do anticipate borrowing any money and receive it, make sure you offset the short-term note by placing the cash you receive in your cash account on your asset side.
Total Current Liabilities - This is the sum of all of the current liabilities listed above.
Long-Term Notes Payable - Bank loans or notes that you will be paying back in five years or more are considered long-term notes. Again, include long-term loans you expect to experience and don't forget to include the cash you will get on the asset side.
Mortgages Payable - If you have a mortgage on your land or building or both, the amount of that mortgage goes here. It offsets the asset side of your balance sheet. For example if your land and building is worth $500,000 on the asset side and you owe $400,000 on the liability side, put that number in this field; so $500,000 is an asset and $400,000 is a mortgage payable.
Total Liabilities - This amount is the sum of your current and long-term liabilities.