I have added Below my balance sheet and
income statement now the statement of owners equity is the beginning capital 28,2800 plus the net income 21,550 which is 49,750 less withdrawals 5,000 equals 44,750 which does not equal my assets. I cannot figure out what I am doing wrong.
Balance Sheet
Assets:
Cash $21,500
Accounts Receivable 17,500
Office Supplies 500
Equipment 15,000
Total Assets 54,500
Liabilities
Accounts Payable 9,750
Total Liabilities 9,750
Owner's Equity
Raya Page, Beg. Capital 28,200
Raya Page, End. Capital 37,950
Income Statement
Planning Fees Income $26,250
Total Income $26,250
Less:
Office Supplies Expenses $200
Rent Expense 800
Salaries Expense 3,000
Utilities Expense 700
Total Expenses (4,700)
Net Income $21,550
Something wrong here: "owners equity is the beginning capital 28,2800 plus the net income 21,550 which is 49,750" The figure 28,2800 is 28,280? (comma in the wrong place) If I add 28,280 plus 21,550 I get 49,830.
Sra
Something wrong here: "owners equity is the beginning capital 28,2800 plus the net income 21,550 which is 49,750" The figure 28,2800 is 28,280? (comma in the wrong place) If I add 28,280 plus 21,550 I get 49,830.
If, instead it's 28200 + 21550 = 49750. Now subtract 5000 from that = 54750. (not 44750)
Check the figures and then check the math.
Sra
To address the discrepancy between the owner's equity and the total assets, let's go through the calculation step by step.
1. Calculate the owner's equity:
Beginning Capital: $28,200
Net Income: $21,550
Less: Withdrawals: $5,000
----------------------------------------------------
Owner's Equity: $28,200 + $21,550 - $5,000 = $44,750
2. Calculate the total assets:
Cash: $21,500
Accounts Receivable: $17,500
Office Supplies: $500
Equipment: $15,000
----------------------------------------------------
Total Assets: $21,500 + $17,500 + $500 + $15,000 = $54,500
The total assets should match the owner's equity in a balanced financial statement. In this case, the owner's equity is indeed $44,750, which matches the calculated value. However, it seems there might have been a typographical error for the beginning capital value of Raya Page.
In the balance sheet, you mentioned that the beginning capital is $28,2800. Please check if that is the correct value. If the correct value is $28,200, then the calculations are correct, and the owner's equity matches the total assets. If there is an error in the beginning capital value, that could explain the discrepancy.
Review the values and make sure you have correctly input all the numbers in the financial statements. Double-checking the entries and calculations should help identify any errors and resolve the discrepancy.