I have I question regarding classified balance sheets.
If expenses and revenue are listed and I have to create a classified balance sheet with those items above, assets, liabilities, and stockholders equity, how would I incorporate the revenue and expenses? ???

matrix

First thing you do is to prepare the income statement - Revenues less Expenses. Whatever the result either loss or income you close it to retained earnings. Remember to prepare a balance sheet income statement is the #1 requirement.

danzer

Even though the accounting equation and expenses/revenues are in related classified categories one is prepared in the balance sheet (accounting equation) and the other in the income statement (revenues and expenses. Hope this helps

manik chand dey

In fact all expenses and incomes are incorporated into the balance sheet, showing the net effect of the transactions at the end of the reporting year as a net profit (added to the capital in B/S) or net loss(deducted from the capital in B/S).