Income and Expense YE Report

[RDPHELPS]

On the YE income and expense reports we were at about a $400 loss even though we transferred from savings to pay bills approximately $20,000 over the course of the year. Although the balance sheet reflected this in the difference from the first to the end of the year, how can we show the $20,000 on the income and expense report? Will transfer accounts correct this and if so, what is the correct set up? Thanks in advance....RP

[JohnDMeyers]

The $20,000 was income in the year that it came in. If that was prior to 2012, it isn't income in 2012 and should not appear on the income and expense statement.

I will show you what the transfer will look like, you will see that it will "cancel out" and therefore, not appear on the income and expense statement.

CR 01-1201-000 savings $20,000
DB 01-9101-000 transfer $20,000

CR 01-9101-000 transfer $20,000
DB 01-1110-000 checking $20,000

It's ok to show a $400 loss for the year, by the way.