Balance Sheet Confusion

Tony Nelson tonyn at openlearning.com
Mon Jul 7 19:00:23 EDT 2008




Hi Jannick,

Here is the equity statement:
Equity Statement For Period Covering 09/30/2007 to 07/02/2008
               
               


Capital, 09/30/2007
   
              $56,626.36
Net loss for Period
              $26,729.73
   
Investments for Period
             $984,726.34
   
Withdrawals for Period
             $984,674.83
   
Decrease in capital
   
              $26,678.22
Capital, 07/02/2008
   
              $29,948.14

I believe the $56,626.36 is a function of the way we recorded Accounts
Receivable at  the beginning of the year.  I'm going to rework that, and
I believe it will go away.

Thanks as always,
--Tony

On Tue, 2008-07-08 at 00:37 +0200, Jannick Asmus wrote:
> 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.



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