I am Stuck. Please help. I cant get my trial balance to work out. Im not sure if its the general ledger or what it is. I haven't been able to get to the income statement, balance sheet, A/R or A/P.

1. Enter transactions to the appropriate journals (Sales, Purchases, Cash Receipts, Cash Disbursements or General Journal). An example is shown for each special journal.
   1. Hint: before you begin go down the list of transaction and decide what journal it goes in.
2. Post to the appropriate subledgers and general ledger accounts.
   1. Hint: use the post column to keep yourself organized as to which amounts you have transferred to the ledgers.
   2. Hint: if there are several transactions to the same account in a special journal, you only have to transfer the total to the general ledger.
3. Prepare a trial balance
4. Prepare an income statement
5. Prepare a balance sheet.
6. Prepare schedules of AR and AP to test the accuracy of the subledgers.

TRANSACTIONS

The Owls Company completed these transactions during January of the current year:

January 1, Began business by selling stock for $470,000.00.

January 1, Rented office space for 1 month using check number 800 for $11,500.00 to Smithlord Properties. (Example posted to cash disbursement journal).

January 2, Purchased office furniture and equipment on credit from McKay Company, invoice mck66 dated January 9, terms 2/10, net 30, $20,499.11. (Example posted to purchases journal).

January 2, Sold merchandise on credit to John Nelson. Invoice No. 324, $7,965.37. (Terms for all credit sales are 2/10, n/30). (Example posted to sales journal).

January 3, Purchased on credit from Cosair Company office supplies, $1350.54, invoice xx12 dated January 3, due in 30 days. Supplies are expected to last for approximately 4 months.

January 3, Received merchandise and invoice F1 dated Jan 1, terms 2/10, n/30; from Farnswood Company, $213,022.22.

January 3, Sold merchandise on credit to Thomas Zak, Invoice no 325, $4,666.88.

January 10, Sent Farnswood Company Check no. 876 in payment of its January 1 invoice less the discount.

January 10, Sold merchandise on credit to Margo Edwards, Invoice no. 326, $8,375.21.

January 11. Sold merchandise on credit to Ken Duclose, Invoice no. 327, $5,554.23

January 12, Received payment from John Nelson for the January 2 sales less the discount check number 4444. (Example posted to cash receipts journal).

January 13, Received payment from Thomas Zak for the January 3 sales less the discount check number 12345.

January 15, Issued check no. 877 payable to payroll, in payment of sales salaries for the first half of the month, $8,500.00. Cashed the check and paid the employees.

January 15, Cash sales for the first half of the month were $83,341.22. (Normally cash sales are posted daily, but for the purposes of this problem you are going to post them all at once.)

January 19, Received payment from Margo Edwards for the sale of January 10 less the discount check number 8888.

January 20, Received merchandise and invoice F2 dated Jan 19, terms 2/10, n/30; from Farnswood Company, $113,044.44.

January 27, Sold merchandise on credit to Margo Edwards, Invoice no. 328, $7,598.22

January 28, Sold merchandise on credit to Thomas Zak, Invoice no 329, $26,544.11.

January 29, Sold merchandise on credit to Heather Terry, Invoice no 330, $13,523.45.

January 31, Issued check no. 879 payable to payroll, in payment of sales salaries for the second half of the month, $8,500.00. Cashed the check and paid the employees.

January 31, Cash sales for the second half of the month were $72,345.00. (Normally cash sales are posted daily, but for the purposes of this problem, you are going to post them all at once.)

January 31, Paid for utilities (water, power, etc) to Unified Utilities Inc. $1,954.57 check number 880.

January 31, Paid for advertising from AdsRus for January $15,000.00 check number 881

January 31, Estimated the expected life of the office furniture and equipment to be 5 years with no salvage value. The company will take a full month of straight-line depreciation in January.

January 31, Counted ending inventory valued at $ 183,312.00.

January 31, Counted office supplies and determined that approximately $475.00 worth of supplies were left and that the rest had been used in January.