If someone can please let me know where I am making my mistake I would greatly appreciate it. Thanks in advance.

Account receivable = $62,500
accounts payable = 123,500
buildings = 418,500
owner's equity, 1/1/06 = 210,000
cash = 179,750
distributions to owners during 2006 = 21,750
supplies = 3,750
land = 130,000
mortgage payable = 479,500
net income for 2006 = 124,750
owner's equity, 12/31/06 = ???

Here is what I have:


Balance Sheet for Simon Company
At December 31, 2006
Assets
Current Assets
Cash $ 179,750
Accounts Receivable 123,000
Supplies 3,750
Total Current Assets 306,500

Property
Buildings 418,500
Land 130,000
Total Property 548,500

Total Assets 855,000

Liability and Stockholder Equity

Current Liability
Accounts payable 62,500
Total Current Liabilities 62,500

Long Term Liability
Mortgage payable 479,500
Distribution to owners during 2006 21,750

Total Liabilities 563,750

Stockholder Equity
Net Income for 2006 124,700


Total Stockholder Equity 146,450

Total Liabilities and Stockholder Equity 688,450



I can't figure out what I did. It doesn't balance and it should. At least I think it should. HELP!

CaptainForest

Assets:
Current Assets:
cash = 179,750
Account receivable = $62,500
supplies = 3,750
TOTAL CA = 246,000

Fixed Assets:
land = 130,000
buildings = 418,500
Total FA = 548,500

Total Assets = 794,500

Liabilities:
Current:
accounts payable = 123,500

Long Term:
mortgage payable = 479,500

Total Liabilities = 603,000

Owner’s Equity = 313,000

Total Liabilities and Owner’s Equity = 916,000

Note: We calculate Owner’s Equity as follows:
owner's equity, 1/1/06 = 210,000
ADD: net income for 2006 = 124,750
LESS: distributions to owners during 2006 = 21,750
owner's equity, 12/31/06 = ??? = 313,000

Comments:
As you can see, it does not balance.
I would suggest you look over the numbers.

For example, in your answer you reversed AR and AP (or did you do that right and reversed them in the top portion?).

Also, where is the Accumulated Amortization on the Building? Or are you ignoring that right now?

LittleMiss1962

Thank you for your response. I had the accounts receiveable and accounts payable mixed up. The amounts should have been: AR = $123,000 & AP = $62,500. Thanks again for your help. As for the amortization, that was not mentioned in the problem.