[jlmmomaw]

Multistep Income statement and classified balance sheet

Accounts receivable $ 6,000
Common Stock 68,000
Salaries Expense 154,000
Interest xpense 5,000
Cash 20,000
Accounts payable 1,800
Retained earnings 12/31/10 76,000
Accumulated depreciation 10,000
Unearned revenue 16,000
Land 90,000
Salaries payable 3,400
Cost of goods Sold 175,000
Supplies 900
Note receivable (long term) 10,000
Inventory 16,000
Office equipment 52,000
Gain on sale of equipment 10,000
Interest receivable (short term) 400
Operating expenses 34,000
Sales revenue 400,000
Prepaid rent 8,000
Interest payable (short term) 1,200
Notes Payable (long term) 26,900
Interest revenue 800


My income statement is coming out to 22,000 can someone check to see if that is right, and my balance sheet is not coming out right still messing with it. HELP

[jlmmomaw]

I did not come out the same on my balance sheet, had 188,100 for assets and 193,300 for total liabilities and stock holders equity. I can not seem to find the descrepancy.

[Just Looking]

With the numbers given, your trial balance is not in balance. Can you double check to see if your numbers are correct? Where did you get these numbers? I'm suspicious about the $68,000 common stock. Could it be $6,800? Even given that, something is not correct. If it is $6800, can you double check the title for the Interest Revenue - could be Interest Receivable? If not, is there an account missing with a $1600 balance?

To answer your question on income, I have a different answer. If you'll tell me how you came up with $22,000, I can tell you where you are going wrong. Thanks.

[jlmmomaw]

It is 68,000 common stock and it does say interest revenue 800; interst receivable (short term) 400, I rechecked the numbers and I wrote them down corretly. For my total assets I ended up with 188,00 and total liabilities and stockholders equity was 193,300. Still trying to figure out where I messed up in both the Income and Classified balance sheet.

[Just Looking]

When first looking at this, I thought the original numbers were your trial balance. I see now that the retained earnings already include the year's income. The $193,300 is correct. I'm trying to see if I can figure out where you went wrong on the assets. My assets equal liabilities and stockholders equity. Tell me what you show as assets and what you show as net income. I thought one possibility was Supplies - which should be an asset, but that doesn't account for the full difference.

[jlmmomaw]

Cash -20,000
Supplies 900
Inventory 16,000
Office equipment 52,000
Prepaid rent 8000
Accts receivable 6000
Less: accum depreci (10000)


Okay I just found one mistake I made but now I come up with 194,100 for total assests

Notes receivable (long term) 10,000
Interest receivable (short term) 400
Interest revenue 800

Land 90,000

Total property and equipment 101,200

[Just Looking]

Interest Revenue is an Income Statement item. Everything else is good. Let's take a look at your Income Statement and how you came up with $22,000. My guess is that it has to do with the gain on sale of equipment.