I am having issues getting a balance sheet to come out right. I have redone this several times and am at a loss as to what I am doing wrong. Can anyone help me out with this? I have attached my documenmts to show what I am working with and where I have gotten stuck. Thanks


Steely Company
Adjusted Trial Balance
For the Year ended December 31, 2008

Cash 6,130
Accounts Receivable 2,300
Prepaid Expenses 750
Equipment 13,400
Accumulated Depreciation 1,200
Accounts Payable 1,700
Notes Payable - Due on June 30, 2009 5,000
Bob Steely, Capital 12,000
Bob Steely, Withdrawals 870
Fees Earned 6,600
Wages Expense 1,450
Rent Expense 900
Utilities Expense 475
Depreciation Expense 150
Miscellaneous Expense 75
Totals 26,500 26,500





Steely Co.
Balance Sheet
December 31, 2008

Assets Liabilities
Current Assets: Current Liabilities:
Cash 6,130 Acct Pay 1,700
Acct Rcv 2,300 Notes Pay 5,000
PrePaid Exp 750 Total Liab 6,700
Total current assets 9,180
Property, Equipment: Owner’s Equity
Equipment 13,400 Bob Steely, capital 12,680
Less Accum Depr 1,200 Total Liabilities & equity
Total Prop, Equip 12,200 19,380
Total assets 21,380

The problem is in the equity. Net income and withdrawals affect equity. You have changed this balance, telling me you know it needs changed, but how did you get 12,680?

Here were my instructions. Thanks for helping


Prepare an Income Statement, Balance Sheet, and Statement of Owner's Equity. Assume that the capital account started with a beginning balance of $10,000. 20 points
ANS:
Steely Co.
Income Statement
For Year Ended December 31, 2008

Fees earned 6,600
Expenses:
Wages Expense 1,450
Rent Expense 900
Utilities Expense 475
Depreciation Expense 150
Misc Expense 75
Total Expenses 3,050
Net Income 3,550

Steely Co.
Statement of Owner's Equity
For Year Ended December 31, 2008

Bob Steely, Capital December 1, 2008 10,000
Net income for December 2008 3,550

Less Withdraws 870
Increase in Owners Equity 2,680
Bob Steely, capital, December 31,2008 12,680

Quote:

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Originally Posted by mommamoon64

Bob Steely, Capital December 1, 2008 10,000

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But this was 12,000 in your first post. That's why your exactly 2000 off.

Thank you so much. Greatfulk that you did not give me the answer but illuminated the path so that I could find it myself. I was able to successfullky complete my assignment and am awaiting my grade. Will let you know how it works out. Thanks for you expertise and the extra eye.

You're welcome. :-)

Thank you so very much... grade in this morning. I scored 147 out of a possible 150 points for the assignment. Hope I don't need help in the future but wonderful to know someone like you is there if I do have a need. Have a great week.

Hey cool. Congrats. :-)

22,580