How do you construct balance sheet?

Need simple answer for an Accounting Trial Balance/Balance Sheet problem please =)?

• This is my first year in an accounting class. I an trying to make the Balance Sheet. "Cash Dividends Paid" is on the trial balance and I'm not sure if this does onto the Balance Sheet (as a liability or Stock. Eq possibly?) or if it goes onto the Income Statement? Really confused because my Balance Sheet is not balancing =(

• Answer:

  "Cash Dividends Paid" is deducted from Retained Earnings and appears in the Statement of Owner's equity, like this: Retained Earnings Beginning balance xxx add net income xxx less cash dividends paid xxx = Ending balance xxx This Retained Earnings ending balance is part of Shareholders Equity, the other part being Share Capital or Common Stock.