Can someone please help with pat K - balance sheet (see in bold "help here" down below). I am going crazy figuring out why my balance sheet is out of balance. Below is the question, then the work I have done so far -

QUESTION -

Music-Is-Us, Inc., is a supplier of musical instruments for professional and amateur musicians. The companys accountants make adjusting entries monthly, and they make all closing entries annually. The company is growing rapidly and prides itself on having no long-term liabilities.

The company has provided the following trial balance dated December 31, 2021.

MUSIC-IS-US, INC. TRIAL BALANCE DECEMBER 31, 2021

Cash $ 45,000 Marketable securities 25,000 Accounts receivable 125,000 Allowance for doubtful accounts $ 5,000 Merchandise inventory 250,000 Office supplies 1,200 Prepaid insurance 6,600 Building and fixtures 1,791,000 Accumulated depreciation 800,000 Land 64,800 Accounts payable 70,000 Unearned customer deposits 8,000 Income taxes payable 75,000 Capital stock 1,000,000 Retained earnings 240,200 Unrealized holding gain on investments 6,000 Sales 1,600,000 Cost of goods sold 958,000 Bank service charges 200 Uncollectible accounts expense 9,000 Salary and wages expense 395,000 Office supplies expense 400 Insurance expense 6,400 Utilities expense 3,600 Depreciation expense 48,000 Income tax expense 75,000 $3,804,200 $3,804,200 Other information pertaining to the companys trial balance is provided as follows.

The most recent bank statement reports a balance of $46,975. Included with the bank statement was a $2,500 check from Iggy Smarts, a professional musician, charged back to Music-Is-Us as NSF. The banks monthly service charge was $25. Three checks written by Music-Is-Us to suppliers of merchandise inventory had not yet cleared the bank for payment as of the statement date. These checks included: no. 508, $5,500; no. 511, $7,500; and no. 521, $8,000. Deposits of $16,500 reached the bank too late for inclusion in the current bank statement. The company prepares a bank reconciliation at the end of each month.

page 388Music-Is-Us has a portfolio of marketable securities that originally cost $19,000. As of December 31, the market value of these securities was $27,500. All short-term investments are classified as available for sale.

During December, $6,400 of accounts receivable were written off as uncollectible. A recent aging of the companys accounts receivable led management to conclude that an allowance for doubtful accounts of $8,500 is needed at December 31, 2021.

The company uses a perpetual inventory system. A year-end physical count revealed that several guitars reported in the inventory records were missing. The cost of the missing units amounted to $1,350. This amount is not considered significant relative to the total cost of inventory on hand.

At December 31, approximately $900 in office supplies remained on hand.

The company pays for its insurance policies 12 months in advance. Its most recent payment was made on November 1, 2021. The cost of this policy was slightly higher than the cost of coverage for the previous 12 months.

Depreciation expense related to the companys building and fixtures is $5,000 for the month ending December 31, 2021.

Although Music-Is-Us carries an extensive inventory, it is not uncommon for experienced musicians to order custom guitars made to their exact specifications. Manufacturers do not allow any sales returns of custom-made guitars. The entire sales amount is collected at the time a custom order is placed, and is credited to an account entitled Unearned Customer Deposits. As of December 31, $4,800 of these deposits remained unfilled because the special-order guitars have not been received from the manufacturer. The cost of goods sold and the reduction in inventory associated with all custom orders is recorded when the custom merchandise is delivered to customers. At that time, the adjusting entry requires only a decrease to unearned customer deposits and an increase in sales.

Accrued income taxes payable for the entire year ending December 31, 2021, total $81,000. No income tax payments are due until early in 2022.

HELP HERE ON BALANCE SHEET -- Using the adjusted trial balance prepared in part j, prepare an annual income statement, statement of retained earnings, and a balance sheet dated December 31, 2021.

will post my work so far in the notes as it is saying it is to long here.