Question

I need help with completing my balance sheet on the last section I can't get the assets to match the liability and owner equity. You can see the trail balance for help.


Happy House Bakeshop Balance Sheet as of October 31, 2018 Assets Current Assets Cash Accounts Receivable Baking Supplies Pre-paid Insurance Total Current Assets 10400 8000 300 1650 20350 11000 Long Term Assets Equipment less: Accumulated Depreciation Total Long Term Assets 200 10800 Total Assets 3116 Liabilities Current Liabilities Accounts Payable Salaries Payable Total Current Liabilities 400 500 900 Long Term Liabilities Bank Loan Total Long Term Liabilities 5500 5500 Total Liabilities 6400 Owners' Equity Common Stock Retained Earnings Beginning Retained Earnings Net Income less: Dividends Ending Retained Earnings 10100 5850 800 3750 Total Owners' Equity 19900 Total Liabilities and Owners' Equity 25200

Answer 1

Please adjust the following owners equity section in your current balance sheet.

Comman stock $20,000

+ Retained earning -

+ Transfer from income summary $5,550

- Dividend paid during the period $ 800

Total Owners Equity $ 24,750

Now you should tally the balance of both side of balance sheet,it will be tallied to a total of $31,150.

Now you will be concerned about the balance transfer from income summary(Net income),so this is profit which has been calculated after adjusting all the expenses from service revenue.Profit will be calculated as follow-

(9,200-500-600-200-150-2200) = $5,550.

Please fix it then it will be tallied.

Even if you find it difficult to do,you can leave commemt for any explanation or calculation.

Thanks