Final answer:
The equity in earnings of Sander account balance is typically reflected on the Equity Statement and could be part of the Balance Sheet in the shareholders' equity section. It involves adjusting the initial investment by the share of the associated company's earnings or losses, and dividends received.
Step-by-step explanation:
A schedule that calculates the equity in earnings of Sander account balance would typically be part of the Equity Statement, which is also sometimes incorporated into the Balance Sheet under shareholders' equity. The equity in earnings is a line item reflecting the share of earnings (or losses) from an investment in an associate or joint venture that a company reports on its income statement.
To prepare this schedule, you would start with the initial investment in the associated company and adjust it for your share of the company's earnings or losses each year, as well as for any dividends received from the investment. This process helps in understanding the impact of the equity method of accounting on the investor's financial statements.
The schedule is usually accompanied by notes explaining significant changes, and it helps in giving stakeholders an understanding of how the investments in other companies are performing and contributing to the parent company's financial position.