Canada Balance sheet question


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Hey everyone, first post on here didn't even know this site existed till I did some googling. Looks pretty cool though!

I was hoping someone could help me understand a question i've been doing for some of my homework (im a 1st semester noob, and not sure where im going wrong here)

Everything is right except the capital account in the equity section. I realize withdrawals doesn't belong, I was just fooling around trying to figure it out at the time..

It says that the capital should be $30,790, but unfortunately doesn't say how to get that number.

what I dont understand is if you add 30,790 + 20,290 + 59,040 = 110,120

and doesn't = the total assets of 89,830

anyways, hope someone can help clear this up for me..thanks in advance...i attached a screenshot of the question.

take care,
Screen Shot 2016-05-12 at 5.04.18 PM.png


Screen Shot 2016-05-12 at 5.04.07 PM.png
 
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Triest123

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The capital is $30,790. The breakdown as follow

Capital bal b/f (as per trial balance) : 14,340
Add : Profit for the current period (note 1) 18,250
Less : Withdrawal (1,800)
Capital bal c/f (to be shown on balance sheet 30,790

Note 1.
Commission earned 7,220
Consulting revenue earned 8,970
Interest earned 2,150
Total revenue 28,120
Less : Expenses
Advertising expense (4,380)
Depreciation - equipment (1,170)
Depreciation - Furniture (1,310)
Interest expense (3,010)
Total expenses (9,870)
Profit for the current period 18,250


You double count the current liabilities (i.e. 20,290) as 59,040 is the total amount of current and long term liabilities.
 
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thank you so much! makes sense now :)...i ended up finding it by just subtracting total assets from the total liabilities but was looking for a breakdown like this..thanks again
 
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Here's a trick I use for practice problems on homework. If you've run into a situation where A does not equal L+SE, put the problem into excel and let it do the math for you to verify that all your adding was done correctly. If it still doesn't match up, subtract Total Assets from Total Liabilities + Stockholder Equity (or visa versa) to find the difference. Then look at your homework to see if there's an amount in the list that would account for the difference that you're seeing. Usually, its a matter of double counting it or forgetting to count something.

Last time I was balancing a balance sheet, I had a $1000 difference between A and L+SE that I couldn't account for. Turned out that I had included Dividend Expenses in the Income Statement and it was throwing off Retained Earnings.
 

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