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    I'm having trouble getting my balance sheet to balance and I'm not sure where I went wrong, this is the question: Prepare a single-step income statement and retained earings statement, as well as a balance sheet. Indicate the likely note disclosure for balance sheet items.

    Adjusted Trial Balance
    31 December 2005

    Debit Balance Accounts

    Cash $38600
    Land (used for building site) 129000
    Cost of goods sold 150000
    Short-term securities 42000
    Goodwill 120000
    Merchandise Inventory 29000
    Office supplies inventory 2000
    Patent 7000
    Operating expenses 55000
    Income tax expense 17500
    Bond discount (unamortized) 7500
    prepaid incurance 900
    Building (atcost) 150000
    Accrued interest receivable 300
    Land (hel for speculation) 75000
    Accounts receivable (trade) 22700
    Note receivable, 10% (long-term investment) 30000
    Subscriber lists (net) 9000
    Deferred plant rearrangement costs 26000
    Dividends, paid during 2005 15000
    Correction of error from prior year-no income tax effect 15000

    Credit Balance Accounts

    Reserve for bad debts 1100
    Accounts payable (trade) 15000
    Revenues 275000
    Deferred income tax 47500
    Note payable (short term) 12000
    Common shares, no par, authorized 50000 shares,
    10000 shares outstanding 100000
    Reserve for depreciaton, building 90000
    Retained earnings, 1 January 2005 188500
    Accrued wages 2100
    Non-controlling interest (balance sheet account) 10000
    Reserve for patent amortization 4000
    Cash advance form customer 3000
    Accrued property taxes 800
    Rent revenue collected in advance 1500
    Bonds payable, 11% (25000 due 1 June 2006) 175000
    Note Payable (long term) 16000

    Additional information ( no accounting erros are involved):
    a) The market value of the short-term marketable securities is 44000
    b) Merchandise inventory is based on FIFO, lower of cost or market.
    c)The patent is being amortized (written off) over a 10-year period. The amortization for 2005 has already been recorded.
    d) Operating expenses as given include amortization and interest expense, and revenues include interest and ivestment revenues.
    e) The "cas advance form customer" was for a special order that will not be completed and shipped until March 2006; the sales price has not been definitely established because it is to be based on cost (no revenue should be recognized for 2005).

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    Solution Summary

    Excel file contains :
    1. Single step income statement
    2. Retained earnings statement
    3. Balance sheet.