Balance Sheet Confusion

[Jannick Asmus]

Hi,

On 08.07.2008 00:20, Tony Nelson wrote:
> Hi All,
> 
> I hope you don't mind if I share some numbers as I think it will make my
> question clearer.
> 
> In QuickBooks I have used "Retained Earnings" to designate earnings that
> remain in the company as we move forward from one year to the next.  So
> I have set up an equity account called "Retained Earnings".  
> 
> GnuCash seems to use Retained Earnings to record a running Income
> Statement, yet this GnuCash Retained Earnings number does not match
> anything that I can find.  
> 
> Anyway, here is part of my balance sheet:
> 
> Equity
> Equity
>     Common Stock		$47,686.74
>     Retained Earnings	       $8,991.13
> Retained Earnings              $29,896.63
> Total Equity                   $29,948.14
> 
> Now if I take the Common Stock value ($47,686.74) and add it to my
> retained earnings figure ($8,991), and subtract my current net income as
> shown on my GnuCash Income Statement for this year (-$26,729.73) I end
> up with $29,948.14 -- My Total Equity number above.
> 
> I have two questions: 
> 
> 1) Why does my Net Income not show up in the Equity portion of the
> balance sheet (it does under QuickBooks)?
> 
> 2) What is the $29,896.63 number and where did it come from?

What does your equity statement (under Reports > Income & Expense) look 
like?

> Thanks to any of you who take the time to work through this.
> --Tony

J.