Balance Sheet Confusion

[Jannick Asmus]

Hi Tony,

On 08.07.2008 01:00, Tony Nelson wrote:
> 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.

I might be helpful to have a look at the balance sheet as at 09/30/2007 
and how your initial values can be traced.

> Thanks as always,
> --Tony

Best wishes,
J.


> 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.
> 
>