equired: Prepare balance sheets for the business as of December 31 for Year 1 and for Year 2 . Hint. heet and remember that total equity equals the difference between assets and liabilities. Prepare the balance sheet for the business as of December 31 for Year 1 . Hint: Report only total equity on the and remember that total equity equals the difference between assets and liabilities. Prepare the balance sheet for the business as of December 31 for Year 2 . Hint: Report only total equity on and remember that total equity equals the difference between assets and liabilities