1. Identify which column specific business-related costs belong to which group: Balance Sheet or Income Statement.
2. Calculate the Owner's Equity and Gross Profit to verify that you categorized the items correctly.

Introductory Accounting does not require complex math or complicated procedures. It is important to be able to assign cost figures to their correct place in the key financial documents. This Assignment requires a two-step process: 1. Place the items listed below into either the Balance Sheet or the Income Statement. 2. Check your answers using the following formulas: A. REVENUE - COST OF GOODS SOLD = GROSS PROFIT - OPERATING EXPENSES = NET INCOME B. ASSETS = LIABILITIES + OWNERS EQUITY (OWNER'S EQUITY = RETAINED EARNINGS ENDING BALANCE + COMMON STOCK) Retained Earnings Beginning Balance + Net Income (Loss) - Dividends Retained Earnings Ending Balance Review your assignments. If you have the items in the right places, you should be able to calculate an Owner's Equity of $85,900 and a Gross Profit of $66,900. Be sure to include the Example: Trucks (4) in your calculations. If you don't get those answers, then you've probably got something in the wrong place