Balance Sheet Confusion

[Charles Day]

On Mon, Jul 7, 2008 at 6:26 PM, Tony Nelson <tonyn at openlearning.com> wrote:

> 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
> 


At the risk of sounding silly, did you close the books on 9/30? Because it
looks to me as if your income and expense accounts were not zeroed out,
causing retained earnings through 9/30/07 to mix with the next period.

Retained Earnings through 9/30/07 ($56,626.36) plus Retained Loss
10/1/07-07/02/08 (-26729.73) = $29,948.14 which is what it shows on your
balance sheet.

-Charles


> 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.
> > >
> > >
>
> _______________________________________________
> gnucash-user mailing list
> gnucash-user at gnucash.org
> https://lists.gnucash.org/mailman/listinfo/gnucash-user
> -----
> Please remember to CC this list on all your replies.
> You can do this by using Reply-To-List or Reply-All.
>