When preparing a classified balance sheet, do you include the net income from the income statement?

I am having problems with this question.
Megan Co. Dec.31, 2005
Building $105,800
A/R 12,600
Prepaid insurance 4680
Cash 20,840
Equip 82,400
Land 61,200
Insurance exp 780
Depreciation exp 6300
Interest exp 2600
Common stock 66,000
Retained earnings (jan. 1, 2005) 40,000
Accumulated depreciation-building 45,600
A/P 11,500
Mortgage payable 93,600
Accumulated depreciation-equipment 18,720
Interest payable 3600
Bowling revenues 18,180

Assume that $13,600 of the mortgage payable will be paid in 2006. From the income statement I get a balance of $8500. Am I suppose to add this to the classified balance sheet? If so, do I put it as retained earnings or net income?
Thanks in advance.

Yes and No.

Net Income (Revenue, Expenses, etc.) will be closed into Retained Earnings.

So while you will never see a “Net Income” account on the balance sheet, the amount will be reflected on the balance sheet under the “Retained Earnings” account.

As for your second question, if you get a net income of 8,500, that is added to retained earnings.

Wow. I have such a similar problem that I am doing.
When doing the interest, insurance and deprec. Expenses as well as the bowling revenue.. where did you include these in the classified balance sheet?

Prepare a classified balance sheet, assuming that $13,600 of the mortgage payable will be paid next year

Why are you adding to an old thread. You should start your own thread.

A mortgage payable that is to be paid within one year will be listed in the current liabilities section of a classified balance sheet.