Classified Balance sheet queston?

I’ve been having a hard time with this question. For total assets I got $ 212,720 and $ 206,700 for Total liabilities and stockholders’ equity. I’ve noticed that the only way to make them equal is by using the service revenue and expenses, which would give me an answer of 221,400. The problem is that I thought Service revenue wasn’t listed in the balance sheet and it should be stated in the income statement instead. Am I doing something wrong, or is the book just incorrect?

Here’s the question:

These items are taken from the financial statements of Victory Co. at December 31, 2012.
Buildings ……………………………….. $ 105,800
Accounts receivable ………………………. 12,600
Prepaid insurance ……………………….….. 3,200
Cash ………………………………………. 11,840
Equipment ………………………………… 82,400
Land ………………………………………. 61,200
Insurance expense …………………………….. 780
Depreciation expense ……………………….. 5,300
Interest expense ………………………….…. 2,600
Common stock …………………………….. 60,000
Retained earnings (January 1, 2012) ………. 40,000
Accumulated depreciation—buildings ……. 45,600
Accounts payable …………………………… 9,500
Notes payable ……………………………… 93,600
Accumulated depreciation—equipment …… 18,720
Interest payable ……………………………… 3,600
Service revenue …………………………….. 14,700
Instructions
Prepare a classified balance sheet. Assume that $ 13,600 of the note payable will be paid in 2013.

classified balance sheet for 2012 assume that 13600 of the note payble will be paid in 2013 prepare a classified balance sheet assume that 13 600 of the mortgage payable will be pain in 2011 prepare a classified balance sheet assume that €13 600 of the mortgage payable will be paid in 2013

Home Insurance

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  1. Sandy, November 29, 2011 7:54 am - Classified Balance sheet queston?

    You’ve already got the answer, in a way. The Retained earnings they gave you were at January 1, 2012. You need to arrive at the Retained earnings at December 31, 2012 before you can fit it into your balance sheet. So,

    Net income:
    Service revenue 14,700
    less:
    Insurance expense 780
    Depreciation expense 5,300
    Interest expense 2,600
    = $ 6,020

    Retained earnings January 1, 2012 $ 40,000
    Net income 6,020
    Retained earnings December 31, 2012 $ 46,020

    Can you get it now?

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