Microsoft KB Archive/222674

= Money: How Retained Earnings and Unresolved Equity are Calculated =

Article ID: 222674

Article Last Modified on 1/24/2007

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APPLIES TO


 * Microsoft Money 2004 Small Business Edition
 * Microsoft Money 2001 Deluxe and Business Edition
 * Microsoft Money 2000 Business & Personal Edition
 * Microsoft Money 99 Personal & Business Edition
 * Microsoft Money 2002 Deluxe and Business Edition

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This article was previously published under Q222674



SUMMARY
This article describes how unresolved equity and retained earnings are calculated in Microsoft Money.



MORE INFORMATION

 * Retained Earnings. Retained Earnings is the sum of Net Income for the years that you select in the report date range.

When you open the Profit and Loss Statement in the Business report section with the All to Date date range, the Net Income figure for those years is equal to this year's Retained Earnings figure that is displayed on the Balance Sheet.
 * Unresolved Equity. Unresolved Equity is the difference between Total Assets and Total Liabilities on the Balance Sheet. Total Assets is always equal to Total Liabilities plus Equity.

Because Money is not a double-entry accounting program, it does not automatically record both sides of a transaction. The Unresolved Equity figure allows the Balance Sheet to stay balanced even if you do not record the second part of a transaction.

For example, if you take out a loan of $5000, the Liabilities section is increased by $5000, but the Cash account is not automatically increased by $5000. If you do not record the cash side of this transaction, the Unresolved Equity in this scenario is a negative value of $5000 in order to balance the Balance Sheet.

Additional query words: Money99 Money2000 Money2001 Money2002 Money2003 Money2004 w_money money2k 7.0 8.0 liability asset

Keywords: kbinfo KB222674

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