I'm stuck on question c, my trial balance isn't balancing the totals I got for debit is $653,535 and for credit it is $651,135
Cumulative CoverageChapters 2 to 5 The Board Shop. owned by Andrew Iohn. sells skateboards in the summer and snowboards in the Winter. The shop has an August 3i scal year end and uses a perpetual inventory system. On 01'5\"\" 1= 2014- the company had the following balances in its general ledger: Cas" $2I,335 a. Iohn, drawings 5 52.300 Merchandise inventory 54,125 Sales 435,500 Supplies 3.750 Rent revenue 1,200 Equipment 70,300 Sales returns and allowances 11.420 Acoumulated depreciatiOnequipment 13,275 Cost of goods sold 301.010 Accounts payable 12.650 Salaries expense 63.200 Unearnecl revenue 4.680 Rent expense 18.150 Notes payable 42,000 Insurance expense 4,140 A- 0'3th capital 58,400 Interest expense 1,925 During August. the last month of the scal year, the company had the following transactions: Aug. 1 Paid $1,650 for August's rent. 2 Paid $6,500 on account. - 4 Sold merchandise costing $7,900 for $12,260 cash. 5 Purchased merchandise on account from Orange Line Cot, FOB shipping point, for $24,500. 5 Paid freight charges of $500 on merchandise purchased from Orange Line Co. 8 Purchased supplies on account for $345. 9 Refunded a customer $425 cash for returned merchandise, The merchandise had cast $265 and was returned to inventory. 10 Sold merchandise on account to Spider Company for $15,250. terms 2i10, nt30, FOB shipping point. The merchandise had a cost of $9,265. 11 Paid Orange Line Co. for half of the merchandise purchasad on August 5. 12 Spider Company returned $750 of the merchandise it purchaSed. Board Shop issued Spider a credit memo. The merchandise had a cost of $465 and was returned to inventory. 15 Paid salaries, $3,100. l9 Spider Company paid the amount owing. 21 Purchased $9,900 of merchandise from Rainbow Option Co. on account. terms 2i10. It.i 30. FOB destination. 23 Returned $800 of the merchandise to Rainbow Option Co. and received a credit memo. 24 30 Received $525 cash in advance from customers for merchandise to be delivered in September. Paid salaries, $3,100. 30 31 Paid Rainbow Option Co. the amount owing. Andrew John withdrew $4,800 cash. Adjustment and additional data: Supplies Equipment Depriciation 1. A count of supplies on August 31 shows $755 on hand. Notes payables 2. The equipment has an estimated eight-year useful life. 3. Of the notes payable, $6,000 must be paid on September 1 each year. 4. An analysis of the Unearned Revenue account shows that $3,750 has been earned by August named Goods corresponding $2,325 for Cost of Goods Sold will also need to be recorded for these sales. cost of 5. Interest accrued on the note payable to August 31 was $175. Interest 6. A count of the merchandise inventory on August 31 shows $76,560 of inventory on hand. Is merchandise ledDay. Instructions (a) Create a general ledger account for each of the above accounts and enter the August 1 balances. (b) Record and post the August transactions. (c) Prepare a trial balance at August 31, 2014. (d) Record and post the adjustments required at August 31, 2014. (e) Prepare an adjusted trial balance at August 31, 2014. (f) Prepare a multiple-step income statement, statement of owner's equity, and classified balance sheet. (g) Record and post closing entries. (h) Prepare a post-closing trial balance at August 31, 2014. O
