I'am so confused! Could you, please, help me out of this this problem?
:confused: the balanse isn't even close to be right.
Here it comes:



John Nalezny Corporation
Balance Sheet
December 31, 2007

Assets
Current assets
Cash $197,000
Sales $8,100,000
Cost of Goods Sold $4,800,000
Investment Revenue $63,000
Accounts receivable $435,000
Less: allowance for doubtful accounts $25,000
Notes receivable $90,000
Total $8,650,000

Inventories $597,000
Franchise $160,000
Traiding Securities $153,000
Patents $195,000
Total Current Assets $6,165,000

Long-term Investments Long-term Investments in Bonds $299,000
Long-term Investments in Stock $277,000
Total
$576,000
Property, Plant and Equipment Land $260,000
Building $1,040,000
Less:Accumulated Depreciation-Buildings $152,000
Accumulated Depreciation-Equipment $60,000
$1,088,000
Equipment
Total property, plant, and equipment $600,000
Total $2,476,000

Liablities and Stockholders' Equity
Current Liabilities
Accounts payable $455,000
Accrued Liabilities $96,000
Dividens payable $136,000
Bonds Payable $1,000,000
Short-time Notes payable $90,000
Total $1,777,000

Long-term Debt
Long-term Notes Payable $900,000
Total liabilities $900,000
Expenses
Selling Expenses $2,000,000
Administrative Expenses $900,000
Interest Expenses $211,000
Total Expenses 1,322,000

Extraordinary Revenues and Gains
Extraordinary Gains $80,000
Total $80,000

Stockholder' Equity
Common Stock $1,000,000 Treasury Stock $191,000
Total $1,191,000

Additional paid-in capital $78,000
Retained earnings $80,000
Total liabilites and stockholders' equity $158,000

Under Assets….
Sales is NOT an asset.
COGS NOT an asset
Investment Revenue is NOT an asset

Under Liabilities…all your expense are NOT liabilities (such as selling expense, admin expense, interest expense)

Also, Extraordinary Gain is NOT a liability


Notes:
All your Revenue and Expenses accounts go on your INCOME STATEMENT, not your balance sheet.

Then, you add your net income to retained earnings (or subtract for a net loss)

What are current assets? Would Long term notes payable be considered a current liability?