I cant seem to balance and get to the correct answer for the Adj. Trial Balance and After closing trial balance. Somehow I'm getting different numbers. The correct answer is:In the sheet titled Worksheet, cells B38 and C38 should be $574,219 and cell H38 and I38 should be $562,590.

I need help in this accounting case study.

GENERAL JOURNAL GROUP 01 Date GENERAL JOURNAL Account Titles Page 1 Debit Credit GENERAL JOURNAL Page 2 GENERAL JOURNAL Date GENERAL JOURNAL - ADJUSTING ENTRIES Account Titles Page 3 Debit Credit GENERAL JOURNAL Date GENERAL JOURNAL - CLOSING ENTRIES Account Titles Page 4 Debit Credit GENERAL JOURNAL Page 5 GENERAL LEDGER PRACTICE SET GENERAL LEDGER 1 ACCOUNT CASH DATE BEG DR 7,500 CR BAL NOTES 7,500 CASH BALANCE ACCOUNTS RECEIVABLE BEG 2,800 2,800 ACCOUNTS RECEIVABLE BALANCE INVENTORY - SHIRTS 0 UNADJUSTED INVENTORY BALANCE 0 ENDING INVENTORY BALANCE INVENTORY - CONCESSIONS BEG 500 500 UNADJUSTED INVENTORY BALANCE 500 ENDING INVENTORY-CONCESSIONS BAL. OFFICE SUPPLIES BEG 100 100 UNADJUSTED SUPPLIES BALANCE 100 ENDING SUPPLIES BALANCE PREPAID INSURANCE BEG 4,125 4,125 UNADJUSTED PREPAID INSURANCE BALANCE 4,125 ENDING PREPAID INSURANCE BALANCE PREPAID ADVERTISING Page 6 GENERAL LEDGER 0 UNADJUSTED PREPAID ADV BALANCE 0 ENDING PREPAID ADV BALANCE LAND BEG 100,000 100,000 LAND BALANCE BUILDING BEG 300,000 300,000 BUILDING BALANCE FURNITURE AND FIXTURES BEG 23,760 23,760 FURNITURE &FIXTURES BALANCE EQUIPMENT BEG 43,200 43,200 EQUIPMENT BALANCE ACCUMULATED DEPRECIATION - BUILDING BEG 1,250 1,250 UNADJUSTED ACCUM. DEPR.- FURNITURE BALANCE 1,250 ENDING ACCUM. DEPR. - BUILDING ACCUMULATED DEPRECIATION - FURN. & FIXT. BEG 220 220 UNADJUSTED ACCUM. DEPR.- FIXTURES BALANCE 220 ENDING ACCUM. DEPR.- FIXTURES BALANCE ACCUMULATED DEPRECIATION - EQUIPMENT BEG 600 600 UNADJUSTED ACCUM. DEPR.- EQUIPMENT BALANCE 600 ENDING ACCUM. DEPR.- EQUIPMENT BALANCE ACCOUNTS PAYABLE BEG 4,100 4,100 ACCOUNTS PAYABLE BALANCE SALARIES PAYABLE BEG 3,650 3,650 UNADJUSTED SALARY PAYABLE BALANCE 3,650 ENDING SALARY PAYABLE BALANCE INTEREST PAYABLE BEG 1,875 1,875 UNADJUSTED INTEREST PAYABLE BALANCE 1,875 ENDING INTEREST PAYABLE BALANCE UNEARNED REVENUE BEG 850 850 UNADJUSTED UNEARNED REVENUE BALANCE 850 ENDING UNEARNED REVENUE BALANCE NOTES PAYABLE -Short-term BEG 250,000 250,000 S-T NOTES PAYABLE BALANCE NOTES PAYABLE - Long-term 0 L-T NOTES PAYABLE BALANCE Page 7 GENERAL LEDGER COMMON STOCK BEG 200,000 200,000 COMMON STOCK BALANCE RETAINED EARNINGS BEG 19,440 19,440 BEG.RETAINED EARNINGS BALANCE 19,440 END. RETAINED EARNINGS BALANCE DIVIDENDS 0 DIVIDENDS BALANCE 0 DIVIDENDS BALANCE - AFTER CLOSING SALES REVENUE 0 SALES REVENUE BALANCE 0 BALANCE AFTER CLOSING SERVICE REVENUE 0 UNADJUSTED SERVICE REVENUE BALANCE 0 SERVICE REVENUE BALANCE 0 BALANCE AFTER CLOSING COST OF GOODS SOLD 0 COST OF GOODS SOLD BALANCE 0 BALANCE AFTER CLOSING INSURANCE EXPENSE 0 INSURANCE EXPENSE BALANCE 0 BALANCE AFTER CLOSING ADVERTISING EXPENSE 0 ADVERTISING EXPENSE BALANCE 0 BALANCE AFTER CLOSING SALARY AND WAGE EXPENSE 0 UNADJUSTED SALARY EXPENSE BALANCE 0 SALARY AND WAGE EXPENSE BALANCE 0 BALANCE AFTER CLOSING SUPPLIES EXPENSE 0 SUPPLIES EXPENSE BALANCE 0 BALANCE AFTER CLOSING MISCELLANEOUS EXPENSE 0 MISCELLANEOUS EXPENSE BALANCE 0 BALANCE AFTER CLOSING Page 8 GENERAL LEDGER UTILITIES EXPENSE 0 UTILITIES EXPENSE BALANCE 0 BALANCE AFTER CLOSING DEPRECIATION EXPENSE 0 DEPRECIATION EXPENSE BALANCE 0 BALANCE AFTER CLOSING INTEREST EXPENSE 0 INTEREST EXPENSE BALANCE 0 BALANCE AFTER CLOSING LOSS ON SHRINKAGE 0 LOSS ON SHRINKAGE BALANCE 0 BALANCE AFTER CLOSING INCOME SUMMARY 0 INCOME SUMMARY BALANCE 0 BALANCE AFTER CLOSING Page 9 WORKSHEET GROUP ID 01 ACCOUNT CASH ACCOUNTS RECEIVABLE INVENTORY - SHIRTS INVENTORY - CONCESSIONS SUPPLIES PREPAID INSURANCE PREPAID ADVERTISING LAND BUILDING ACCUMULATED DEPRECIATION - BUILDING FURNITURE AND FIXTURES ACCUMULATED DEPRECIATION - FIXTURES EQUIPMENT ACCUMULATED DEPRECIATION - EQUIPMENT ACCOUNTS PAYABLE SALARIES PAYABLE INTEREST PAYABLE UNEARNED REVENUE NOTES PAYABLE -SHORT-TERM NOTES PAYABLE -LONG-TERM COMMON STOCK RETAINED EARNINGS DIVIDENDS SALES REVENUE SERVICE REVENUE COST OF GOODS SOLD INSURANCE EXPENSE ADVERTISING EXPENSE SALARY AND WAGE EXPENSE SUPPLIES EXPENSE MISCELLANEOUS EXPENSE UTILITIES EXPENSE DEPRECIATION EXPENSE INTEREST EXPENSE LOSS ON SHRINKAGE Trial Balance Totals TRIAL BALANCE DR CR ADJUSTMENTS DR CR 7,500 2,800 0 500 100 4,125 0 100,000 300,000 ADJ. TRIAL BALANCE DR CR 0 0 0 0 0 1,250 0 23,760 1,250 23,760 220 0 43,200 220 43,200 600 4,100 3,650 1,875 850 250,000 0 200,000 19,440 0 600 4,100 3,650 1,875 850 250,000 0 200,000 19,440 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 481,985 7,500 2,800 0 500 100 4,125 0 100,000 300,000 0 0 0 0 0 481,985 Page 10 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 481,985 481,985 AFTER CLOSING TB DR CR 7,500 2,800 0 500 100 4,125 0 100,000 300,000 1,250 23,760 220 43,200 600 4,100 3,650 1,875 850 250,000 0 200,000 19,440 0 0 0 0 0 0 0 0 0 0 0 0 0 481,985 481,985 FINANCIAL STATEMENTS INCOME STATEMENT A STATEMENT OF STOCKHOLDERS' EQUITY Page 11 FINANCIAL STATEMENTS BALANCE SHEET Page 12 INSTRUCTIONS The Health & Fitness Center Practice Problem Fall 2016 Each group will work the project and electronically submit the completed spreadsheet for your group and only your group through eLearning (details will be provided in class). Do not copy files between groups, do not share files between groups. The Practice Problem is worth 5% of your overall course grade and will be scored out of 100 points: 80 points of your grade will be a common group grade based on the completeness and accuracy of your group's work. The remaining 20 points will be based on the other group members' assessment of your individual contribution to the project. Anyone not actively participating in the project will receive a zero on the assignment. 1. Download the transactions for the second month of business for the Fitness Center. Also download the excel spreadsheet files for your group number and save to your own CD/computer. The balances shown on the January 31, 2015 Balance Sheet have been entered as the beginning balances in your General Ledger. Enter transactions for February 1 through 28th as journal entries in the General Journal of the electronic spreadsheet. Use the format we use in the lectures to write these journal entries. 2. Post from the \"General Journal\" into the \"General Ledger\" (using the cell referencing feature of excel works best). Post the debit or credit in the appropriate account, and make a note in the \"notes\" column so that you will be able to track your entries when you make an error (if necessary). The spreadsheet will automatically compute a balance in the \"Unadjusted Balance\" cell. Do not enter any negative numbers. There are enough lines for all necessary entries, so if you run out of space, it means that you have not done it correctly. Start the entries on the top line of the account's section (right under the blue line). You should never get a negative balance. If you do, re-check to see that you posted the entry correctly to either the debit or credit column. I have protected cells in these sheets so that you shouldn't be able to inadvertently mess up the formula. However, if you post an entry to the Ledger and later want to remove it...DON'T hit the delete key...simply hit the backspace key to clear the cell. Hitting delete will cause an error in the formula and then your trial balance will not balance. In the \"Notes\" column include explanations such as \"purchased 160 shirts for $11 each\" or \"sold 50 shirts\". This will make it much easier for you to keep track of how many units of inventory you have on hand, and how much each unit cost. Use the perpetual inventory method to update your inventory as discussed in class. The unadjusted balances will post automatically into the Unadjusted Trial Balance on the \"Worksheet\" page of the electronic spreadsheet. After you finish with the primary transactions (Feb 1-28th) you need to check the Unadjusted Trial Balance to make sure it balances! (Refer to check figure announced in class) 3. Enter the adjusting entries in the General Journal in the electronic spreadsheet. (It is titled \"General Journal - Adjusting Entries\".) You are provided with a partial listing of adjusting entries on page 5 of the transaction packet. These are only the adjusting entries that require additional information - you will need to go back to the original transactions to determine what other accounts require adjustment and how much the adjustment should be. Inventory shortfalls get debited to \"Loss on Shrinkage.\" You should have a total of eight adjusting entries when you finish (depreciation counts as only one entry and loss on shrinkage counts as only one entry). 4. Post the adjusting entries into the \"General Ledger\" using cell referencing. Do not use negative numbers. Put the entry into the appropriate cell on the line below the \"Unadjusted Balance\" (if applicable). The adjusting entries will automatically post into the \"Adjustments\" column of the \"Worksheet\" page in the electronic spreadsheet. When you are done with your adjustments, make sure that the debits and credits in the \"Adjustments\" columns are equal. The adjusting entries will be combined automatically with the unadjusted balances to provide the final \"Adjusted Trial Balance\" on the \"Worksheet\". The \"Worksheet\" page is automated; you will do all of your work on the \"General Journal\A Practice Problem in Accounting The Health and Fitness Center Fall 2015 Instructions: Use the following balance sheet information from The Health and Fitness Centers' month-end financial statements dated January 31, 2015 and open t-accounts for each balance sheet line item. Then use the enclosed TRANSACTIONS AND ADDITIONAL INFORMATION to complete the General Journal, Ledger, Worksheet and Financial Statements for the second month of operations during fiscal year 2015. Use the Perpetual Inventory method as discussed in class for all sales of merchandise. The Health and Fitness Center Balance Sheet As of January 31, 2015 Assets: Liabilities: Cash $7,500 Accounts Payable $4,100 2,800 Salaries Payable 3,650 Inventory - Concessions 500 Interest Payable 1,875 Supplies 100 Unearned Revenue Accounts Receivable Prepaid Insurance Note Payable 250,000 15,025 Total Current Liabilities 260,475 Land 100,000 Stockholder's Equity Building 300,000 Common Stock Total Current Assets Equipment 4,125 850 43,200 Retained Earnings Furniture and Fixtures 23,760 Accumulated Depreciation (2,070) Total Assets Total Liab. and SHE $479,915 Notes to Financial Statements: 1 200,000 19,440 $479,915 The Health and Fitness Center, a Texas corporation, is principally engaged in providing a fitness facility available to \"club\" members. The Health and Fitness Center offers all of the latest equipment and services including group exercise, personal training, cardiovascular equipment, Pilates and yoga, and weight lifting. The Center also provides massage services. Fiscal Year The Health and Fitness Center was established as a business in January 2015. The Health and Fitness Center follows a fiscal year end of December 31. Inventories Inventories consist of concessions available for resale to members. These concessions consist of energy drinks, nutritional supplements, etc. Inventories are valued on a first-in, first-out basis, using the perpetual method. (Note: The Center plans to expand its inventory during February to include logo-based apparel.) Prepaid Insurance The Health and Fitness Center carries property insurance through Good Hands Insurance Co. The Center purchased a 12 month policy on January 1, 2015 for $4,500. Fixed Assets Property and Equipment are stated on the basis of historical cost. Land and Building: The Land and Building was a group purchase made on January 1, 2015. The total purchase price amounted to $400,000. On the date of purchase the land was appraised at $100,000 and the building was appraised at $300,000. The Health and Fitness Center paid $150,000 down and signed a $250,000, 12-month, 9% note for the balance. Depreciation on the building is computed using the straight-line basis with no salvage value. The life of the building is estimated to be 20 years. Equipment and Furniture and Fixtures: All equipment and furniture and fixtures were purchased for cash on January 1, 2015. Both equipment and furniture and fixtures are depreciated using the straight-line method of depreciation. No salvage value is anticipated. The useful life of the equipment is 6 years. The useful life of the furniture and fixtures is 9 years. The book values of these assets are presented below: Land Building Less: Accumulated Depr Equipment Less: Accumulated Depr Furniture and Fixtures Less: Accumulated Depr $100,000 $100,000 300,000 1,250 298,750 43,200 600 42,600 23,760 220 Net Plant, Property, and Equipment 23,540 $464,890 Unearned Revenue The balance in the unearned revenue account is due to the sale of gift certificates redeemable for massage therapy. Revenue Recognition The Company recognizes service revenue upon providing services for customers. Sales revenue is recognized upon customer receipt of goods. Revenue for gift certificate sales is recognized at redemption. (Note: all memberships sold during the first month of operations were for trial memberships for one month only). 2 Practice Problem in Accounting The Health & Fitness Center Fall 2015 Instructions Use the following TRANSACTIONS AND ADDITIONAL INFORMATION to complete the General Journal, Ledger, Worksheet and Financial Statements for the second month of operations for the Health & Fitness Center. Use the Perpetual Inventory method as discussed in class for all sales of merchandise. TRANSACTIONS Feb 1 Purchased office supplies for $325 on an open account from Kelli's Office Supplies. The Fitness Center has 30 days to pay for the supplies. Feb 1 Purchased a 4-month advertising campaign to be broadcast on local radio stations during the months of Feb. through May. Paid $2,200 in advance for this ad campaign. Feb 1 Sold 120, twelve-month memberships to the Fitness Center for $415 each. All membership dues were collected in cash. Feb 3 Paid wages due on January 31. Feb 5 Purchased on account a total of 160 shirts with an embroidered Fitness Center logo from C & C Creations at a price of $11 per shirt. These shirts are available for resale to customers. Feb 6 Purchased concessions for $2,550 on account from Advocare Distributing, Inc. These concessions consist of energy drinks, nutritional supplements, etc., and are available for resale to customers. Feb 7 Provided 45 hours of personal training services to members. Fees are charged at a rate of $38 an hour. The total amount was billed to individual member's accounts. Feb 9 Paid the total amounts due to Kelli's Office Supplies for the Feb. 1 st transaction and C&C Creations for the Feb. 5 th transaction. Feb 10 Sold thirty five shirts to a corporate member, Allen & Associates for $32 each. Collected $800 in cash and the balance is owed to the Fitness Center on account. Feb 11 Purchased Valentines Day flowers for the reception desk for $80 cash. Feb 13 Sold a gift certificate for $100. The gift certificate is valid for one year and is redeemable for a 60 minute massage. Feb 15 The concessions stand reported the following sales for the first half of the month. All sales were billed to the members' account. $ Sales Amount $ Cost of Merchandise $3,840 $2,160 3 Feb 15 For the first half of February, provided 25 hours of massage therapy at a rate of $75/hour. Billed the individual members' accounts for services provided. Feb 16 Paid wages and salaries of $3,195 to Fitness Center employees. Feb 17 Gift certificates totaling $250 were redeemed for massage therapy performed. Feb 18 Received $2,200 for services previously billed to customer's accounts. Feb 19 Purchased with cash additional concessions for $850 from Advocare Distributing. Feb 20 Paid $4,320 on accounts payable. Feb 21 Received $3,250 for services previously billed to customers' accounts. Feb 22 Collected the balance of what was owed on account from Allen & Associates for the Feb.10 transaction. Feb 23 Received a utility bill that totaled $419 for the month. It is due March 12. Feb 24 Sold fifty shirts to individual customers for $39 each. Collected 30% in cash, the balance is owed to the Fitness Center on account. Feb 25 The owners of the company invested an additional $15,000 into the Fitness Center in exchange for common stock. Feb 26 Cash sales of shirts: 30 shirts sold at $42 each. Feb 27 The Fitness Center paid a dividend of $2,000 to its shareholders. Feb 28 Purchased additional equipment for $27,000; paid $17,000 in cash and signed a two year, 8% note for the balance. Feb 28 Fees for massage therapy for the last half of February totaled $3,900. All of these transactions were billed directly to each member's account. Fees for personal training given during February amounted to $5,160. Forty percent of these fees were collected in cash. Feb 28 Feb 28 Credit sales for concessions during the last half of February totaled $1,940. Cash sales for concessions during the last half of February totaled $680. Cost of the concessions sold during the last half of February was $1,195. Paid $1,100 on accounts payable. 4 ADDITIONAL INFORMATION: 1. Depreciation expense for the month of February should be calculated using the straightline method. [You do not need to depreciate the new equipment purchased on 2/28.] 2. At the end of the month, a physical count was taken of the Fitness Center's inventories. It revealed the following information: a. Forty two of the shirts for resale were on hand at February 28. b. Concession merchandise still on hand as of February 28 amounted to $523. 3. Salaries earned by employees but unpaid on February 28 th totaled $2,935. 4. Interest accrued as of February 28th is $1,875. 5. Office Supplies still on hand on February 28th totaled $90. 5