Questions About Balance Sheet and Income Statement

[James Kerr]

On 07/04/2013 1:41 AM, Mark Phillips wrote:
> I am confused. I ran an income/expenses report for 1/1/13 - 1/31/13 and
> included all the income and expense accounts. I then ran a balance sheet
> for 1/31/13 and Assets = L + OE, as I would expect, but the Retained Losses
> = $4,270.76 and the Net Income on the income statement is $1,074.74
>
> 1. Shouldn't these two amounts be the same?

No.

Profit/Loss is for a specific period.

Retained Earnings/Losses are the sum of all profits/losses since the 
business began.

>
> 2. How do I find out the reason for the difference?
>

Run a Balance Sheet at the preceding 12/31.

Jim