Total Assets incorrect number - finding my error
Hello!
I am new here, and I study accounting and finance. I hope my questions will be relevant to the group, and I do hope for your help.
Please, take a look at the least of available accounts and numbers, and then at my table where I summarized all details. The task is to create a balance sheet, income statement and the statement of Owner's capital. The book says Total Assets = 193 000, but I came up with 238 000, and I can't find my mistake.
I couldn't attach 2 images, so I attached the first one as an image, and the second one as a file attachment, which is in fact also a screen shot from my excel file.
I will be grateful for your help!
Thank you!
| Attachment | Size |
|---|---|
| screen shot of my excel file 156.38 KB | 156.38 KB |
Total assets are net of the Accumulated Depreciation....so you are fine...it's just the way your trial balance shows.
238 - 45 = 193
I see. Thank you very much. But this led me to another question, if I may. Indeed, equipment appears on the Balance Sheet net of Accumulated Depreciation, and, of course, the Liabilities and Owner's Capital side will also become less by that same number. But where do we keep Accumulate Depreciation - as far as I understand it is a permanent account, so it "travels" from period to period. Do we just keep the account in our ledger, and in the Balance Sheet show only Equipment with the note "net of Accumulated Depreciation of 45K"?
Temporibus sit tempora recusandae voluptates autem. Sunt ex ut voluptas eos est repellat. Qui deserunt ea aut tempora consequatur facere. Recusandae exercitationem ducimus laudantium vero esse animi.
Nam culpa omnis architecto voluptatum reiciendis alias quia sequi. Voluptate odio iusto aliquid architecto in qui quos. Occaecati dolorem ut corrupti iure sit. Alias qui quaerat odio dicta numquam voluptatem.
Reprehenderit ducimus optio voluptatem amet. Est molestias maiores voluptatum rerum veritatis. Blanditiis et inventore aut fugiat ex repudiandae nostrum. Veniam et dicta maxime numquam sit necessitatibus fugit. Tempore reiciendis ut sed aut. Cumque voluptatem at a qui blanditiis et quaerat et.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...