Discrepancy in Reports

[Mike or Penny Novack]

On 2/19/2015 6:23 PM, Shawn McGowan wrote:
> Wm,
>
> As usual, you are spot on. Equity statement matches P &L and I did not close
> the books. Can you help me understand what creates this difference?
>
If you really started your books at the beginning of the year and this 
is the first year and you used correct dates for all your reports then I 
can't explain this.

But if the books were started before the period (or this isn't the first 
year, etc.) then very easy to explain if you don't use "close the 
books". In that case:

1) The P&L Report (Income Statement) will show the gain or loss for the 
specified interval.
2) The Balance Sheet as of the end of the interval will show the 
cumulative gain of loss as "retained earnings" or "retained losses".

What you didn't say is whether besides running a Balance Sheet for the 
end of the interval you also ran one for the beginning of the interval. 
If you did (or do now) does the difference between "retained earnings" 
or "retained loses" (on those two Balance Sheets match what the Income 
Statement has for the interval (it should).

Michael D Novack