Balance Sheet Confusion

[Tony Nelson]

Hi Jannick,

Here is the balance sheet as of 9/30/07, and 7/2/08.    To answer
Charles' question, yes the balance sheet does balance.

The Net Income as of 09/30/07 is $56,626.36

The Net Income as of 07/02/08 is -$26,729.73

Balance Sheet 09/30/2007
               
               
               






Assets 
   
   
   
   
            
Assets
   
   
   
       $0.00
   
   
Accumulated
Depreciation
   
   
-$207,043.00
   
   
Computer
Hardware
   
   
 $176,435.01
   
   
Current
Assets
   
       $0.00
   
   
   
   
Franchise
Tax Board
Deposit
     $800.00
   
   
   
   
BoA Checking
  $19,018.64
   
   
   
   
Savings
Account
       $0.00
   
   
   
Furniture &
Fixtures
   
   
  $11,836.74
   
   
Shareholder
Advance-Wm
Nelson
   
   
     $798.00
   
   
Vehicles
   
   
  $27,387.12
   
   
Accounts
Receivable
   
   
  $56,626.36
   
Imbalance-USD
   
   
   
   
       $0.00
Orphan-USD
   
   
   
   
       $0.00
Total
Assets 
   
   
   
   
 $85,858.87 

____________

____________
Liabilities 
   
   
   
   
            
Liabilities
   
   
   
       $0.00
   
   
Credit Card
   
   
       $0.00
   
   
Fica Payable
   
   
       $0.00
   
   
FIT Payable
   
   
       $0.00
   
   
FUI Payable
   
   
      $56.00
   
   
Medicare
Payable
   
   
       $0.00
   
   
SDI Payable
   
   
       $0.00
   
   
Sep/Ira
Payable
   
   
  $29,125.00
   
   
SIT Payable
   
   
       $0.00
   
   
Accounts
Payable
   
   
       $0.00
   
Total
Liabilities 
   
   
   
   
 $29,181.00 

____________
Equity 
   
   
   
   
            
Equity
   
   
   
       $0.00
   
   
Common Stock
   
   
  $47,686.74
   
   
Opening
Balances
   
   
 -$56,626.36
   
   
Retained
Earnings
   
   
   $8,991.13
   
Retained
Earnings 
   
   
   
   
 $56,626.36 
Total
Equity 
   
   
   
   
 $56,677.87 

____________
Total
Liabilities
& Equity 
   
   
   
   
  $85,858.87

Here is the balance sheet as of 6/2/08

-----------------------

Balance Sheet 07/02/2008
               
               
               






Assets 
   
   
   
   
            
Assets
   
   
   
       $0.00
   
   
Accumulated
Depreciation
   
   
-$207,043.00
   
   
Computer
Hardware
   
   
 $178,269.81
   
   
Current
Assets
   
       $0.00
   
   
   
   
Franchise
Tax Board
Deposit
     $800.00
   
   
   
   
BoA Checking
   $9,179.52
   
   
   
   
Savings
Account
       $0.00
   
   
   
Furniture &
Fixtures
   
   
  $11,836.74
   
   
Shareholder
Advance-Wm
Nelson
   
   
 -$10,000.00
   
   
Vehicles
   
   
  $27,387.12
   
   
Accounts
Receivable
   
   
  $19,517.95
   
Imbalance-USD
   
   
   
   
       $0.00
Orphan-USD
   
   
   
   
       $0.00
Total
Assets 
   
   
   
   
 $29,948.14 

____________

____________
Liabilities 
   
   
   
   
            
Liabilities
   
   
   
       $0.00
   
   
Credit Card
   
   
       $0.00
   
   
Fica Payable
   
   
       $0.00
   
   
FIT Payable
   
   
       $0.00
   
   
FUI Payable
   
   
       $0.00
   
   
Medicare
Payable
   
   
       $0.00
   
   
SDI Payable
   
   
       $0.00
   
   
Sep/Ira
Payable
   
   
       $0.00
   
   
SIT Payable
   
   
       $0.00
   
   
Accounts
Payable
   
   
       $0.00
   
Total
Liabilities 
   
   
   
   
      $0.00 

____________
Equity 
   
   
   
   
            
Equity
   
   
   
       $0.00
   
   
Common Stock
   
   
  $47,686.74
   
   
Opening
Balances
   
   
 -$56,626.36
   
   
Retained
Earnings
   
   
   $8,991.13
   
Retained
Earnings 
   
   
   
   
 $29,896.63 
Total
Equity 
   
   
   
   
 $29,948.14 

____________
Total
Liabilities
& Equity 
   
   
   
   
  $29,948.14

























On Tue, 2008-07-08 at 01:14 +0200, Jannick Asmus wrote:
> 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.
> > 
> >