I have a new company that's not really in full operation yet, but I want to make the year end now...
I've personally paid $487 in expenses for stuff I bought that I eventually want to be reimbursed for.
The company has $34 in revenue.
So, on my Income Statement I have:
Sales $34
Expenses $487
Net income ($453)
Now I know my Balance sheet needs to have Assets=Liabilities + Shareholder Equity
But it's not working, as you'll see below I have $521 assets which does not equal $34 liabilities+shareholder equity! I have:
Current Assets $34 (my revenue)
Other assets $487 (all the stuff that I bought and paid for personally)
TOTAL ASSETS $521
Current Liabilities $34 (I will reimburse myself this to cover part of my expenses)
Long term Liabilities $453 (the part of my expenses not yet reimbursed
TOTAL LIABILITIES $487
Shareholders Equity ($453) - my tax software is pulling this from the Income statement.
TOTAL Liabilities + Shareholders Equity $34
Retained Earnings ($453)
OK, so where am I going wrong here???
Thanks in advance!
Lexi
I've personally paid $487 in expenses for stuff I bought that I eventually want to be reimbursed for.
The company has $34 in revenue.
So, on my Income Statement I have:
Sales $34
Expenses $487
Net income ($453)
Now I know my Balance sheet needs to have Assets=Liabilities + Shareholder Equity
But it's not working, as you'll see below I have $521 assets which does not equal $34 liabilities+shareholder equity! I have:
Current Assets $34 (my revenue)
Other assets $487 (all the stuff that I bought and paid for personally)
TOTAL ASSETS $521
Current Liabilities $34 (I will reimburse myself this to cover part of my expenses)
Long term Liabilities $453 (the part of my expenses not yet reimbursed
TOTAL LIABILITIES $487
Shareholders Equity ($453) - my tax software is pulling this from the Income statement.
TOTAL Liabilities + Shareholders Equity $34
Retained Earnings ($453)
OK, so where am I going wrong here???
Thanks in advance!
Lexi