Journal Entries

GL-T account (of JE)

There is a mistake in my GL-T Accounts, I can't find it. That's Why my Trial Balance is not Matching, Could someone's helo me to find the mistake and explain to me what's wrong Please!

2017 620,000 620,000 410,000 210,000 15,000 10,000 5,000 Comparitive statement of Financial Position December 31, 2018 and 2017 Account 2018 Sales Revenue 713,000 Sales discount Net slaes 713,000 Cost of goods sold 471,500 Gross Profit 241,500 Operating exp: Salaries & wages exp. 17,250 Rent expense 11,500 Utility Expense 5,750 Maintenance exp. Dep. Expense (equip. & Build) 57,500 Bad debt exp 4,025 Insurance exp 13,800 Total operating exp. 109,825 Operating income 131,675 Other revenues and expenses: Rent revenue Interest exp. 34,500 Income before tax 97,175 Income tax exp. 45,000 Net Income 52,175 50,000 3,500 12,000 95,500 114,500 30,000 84,500 42,000 42,500 Comparitive statement of Financial Position December 31, 2018 and 2017 Account 2018 2017 Current Assets: Cash Accounts Receivable Inventory Prepaid Insurance Total current assets Long term Investments Equipment Accumulated depreciation Equipment Total Assets 100,000 200,000 185,000 24,000 509,000 250,000 500,000 (150,000) 1,109,000.00 50,000 100,000 125,000 36,000 311,000 80,000 500,000 (100,000) 791,000.00 60,000 Liabilities and sharholders equity Accounts Payable Wages & Salaries Payable Unearned Sales Revenue Income tax payable Total current liabilities Bonds payable Total Liabilities Common shares Retained earnings Total Liabilities and sharholders equity 160,000 75,000 107,500 45,000 387,500 350,000 737,500 100,000 271,500 1,109,000.00 10,000 42,000 112,000 350,000 462,000 100,000 229,000 791,000.00 25 years. Jan 1 purchased new building for 585,873 they paid 130,194 cash and they sign 12 note payable for the balance. The note carry interest o 6% The note principle due with the interest on Dec 31, 2019. The building expected useful life residual (salvage) value amount of 65,097 ACCT 1115 uses straight line as their method of depreciation. Jan 3, all wages payable from 2018 paid cash Jan 8, they deliver merchandise to customer amount of 107,500 cost of these products are 26,039 Previously ACCT 1115 received cash amount of 107,500 from customer and record it in Dec 18, 2018 in account (Unearned sales revenue) Jan 12, all income taxes owed from last year are paid cash Jan 13, collect from customers 130,194 cash Jan 15, issued common shares for 390.582 cash Jan 16 purchased merchandise for 273,407 from ABC co., term 3/20, n 45. FOB destination. 3% discount if paid in 20 days Jan 21 returned merchandise to ABC co amount of 13,019 Jan 28 paid the amounts owed to ABC Co. Jan 31 paid utilities 6,510 cash Jan 31 paid salaries 10.416 cash Feb 2 sold merchandise of 156.233 cost of those goods was 104,155 ACCT 1115 used perpetual inventory system Feb 12 sold merchandise of 78,116 to XYZ Co., term 2/10, 1/30. FOB shipping point. cost of those goods was 52,078 2% discount if received in 10 days March 1, XYZ paid their account in full Apr 1 paid rent for the months Jan-Mar amount of 3,906 Apr 15, purchased merchandise for cash 260,388 May 1 borrow from a local bank 130,194 by signing a 12% 12 note payable Aug 1, they paid for one-year rent amount of 15,623 Aug 31, paid cash for maintenance and cleaning the building 6,510 Sep 1, paid in salaries 19,529 Sep 30, they rent part of their building to a local business and collect one year rent in advance amount of 31,247 for 12 months Oct 21 sold merchandise on account for 260,388 to BC itd., cost of those goods was 130,194 Nov 1, Bc Itd., paid 65,097 cash on their account Nov 8 sold merchandise to SK Co., for 273,407 term 2/10, 1/30. FOB shipping point. Cost of those goods was 182,272 2% discount if received in 10 days Nov 14, SK paid their account in full Dec 31, paid income taxes amount of 10,000 10 using perpetual inventory system Equipment on their SFP purchased on 2016 for $500,000 with 500,000 $0 residual value, depreciated straight line over 10 year estimated useful life. . They use aging accounts receivables method to estimate any bad debt expenses. They estimated 3% of outstanding net Accounts Receivables t year yean sales at year will not be collected Prepaid insurance was paid on Jan 1,2017 to cover 3 years insurance No accruals/ deferrals other than the ones found in the above transactions. 3% 2019 Credit Debit 585,873 01-Jan 130,194 455,679 03-Jan 75,000 75,000 08-Jan 107,500 107,500 26,039 26,039 12-Jan 45,000 45,000 13-Jan 130,194 130,194 15-Jan 390,582 390,582 16-Jan 273,407 273,407 21-Jan 13,019 13,019 28-Jan 273,407 13,019 7,812 252,576 31-Jan 6,510 6,510 31-Jan Account Titles Building Cash Notes Payable Wages & Salaries Payable Cash Unearned Sales Revenue Sales Revenue Cost of goods sold Inventory Income tax payable Cash Cash Accounts Receivable Cash Common shares Inventory Accounts Payable Accounts Payable Inventory Accounts Payable Inventory Purchase Discount Cash Utility Expense Cash Salaries & wages exp. (Cash Cash Sales Revenue Cost of goods sold Inventory Accounts Receivable Sales Revenue Cost of goods sold Inventory Cash Accounts Receivable Rent expense Cash Inventory Cash Cash Notes Payable Prepaid Rent Cash Maintenance exp. Cash Salaries & wages exp. Cash Cash Unearned Rent Revenue Accounts Receivable Sales Revenue 10,416 10,416 02-Feb 156,233 156,233 104,155 104,155 12-Feb 12-Feb 78,116 78,116 52,078 52,078 01-Mar 78,116 78,116 01-Apr 3,906 3,906 15-Apr 260,388 260,388 01-May 130,194 130,194 01-Aug 15,623 15,623 31-Aug 6,510 6,510 01-Sep 19,529 19,529 30-Sep 31,247 31,247 21-Oct 260,388 260,388 130,194 130,194 01-Nov 65,097 65,097 08-Nov 273,407 273,407 Cost of goods sold Inventory Cash Accounts Receivable Accounts Receivable Sales Revenue Cost of goods sold Inventory Cash Sales discount Accounts Receivable Income tax exp. Cash 182,272 182,272 14-Nov 267,939 5,468 273,407 31-Dec 10,000 10,000 Dec 31, the note payable and the interest need to be calculated and paid Can be done here or in Adj. JE sheet Interest expense = 36,454 31-Dec Notes Payable Interest expense Cash 455,679 36,454 492,133 4,559,939 4,559,939 dr + cr- dr- crt dr- crt Beg. B. LIABILITIES Accounts Payable 160,000 13,019 273,407 252,576 Beg SHAREHOLDERS' EQUITY Common Shares 100,000 390,582 490.582 Beg End 167.812 End dr + cr- Retained earnings 323,675 Beg ASSETS Cash 100,000 130,194 130,194 390,582 75,000 156,233 45,000 78,116 252,576 130,194 6,510 31,247 10,416 65,097 3,906 267,939 260,388 15,623 6,510 19,529 10,000 492,133 21.817 323.675 End dr- Notes Payable cr+ Beg 455,679 455,679 130,194 130.194 End 1 17 REVENUES dr- Sales Revenue crt 31-Dec 0 Beg End 107,500 156,233 78,116 dr- dr + Unearned sales Revenue crt 107,500 107,500 Beg 260,388 273,407 Beg. B. Accounts Receivable or 200,000 78.116 130,194 260,388 78,116 273,407 65,097 273,407 End 875.644 End dr + Sales Discount cr- dr- Beg End 265.097 Unearned Rent Revenue crt o 7812 31,247 Beg 5,468 5.468 End dr + cr- 23.435 End dr + cr- Cost of Goods Sold 0 Beg B. Beg dr- Inventory 185,000 273,407 26,039 260,388 13,019 104,155 52,078 130,194 182,272 Wages & salaries payable crt 75,000 75,000 Beg 26,039 104,155 52,078 130,194 182,272 494.737 End End dr- cr+ End 211.039 Income Tax payable 45,000 45,000 Beg dr + Rent Expense cr- dr- Beg 0 Beg Prepaid Insurance exp. crt 24,000 12000 End 3,906 5,208 9.114 dr- cr+ End Bonds payable 350,000 End 12.000 Beg dr- crt End 9.114 Bonds payable 350,000 End 12.000 Beg dr- Prepaid rent exp. crt 350.000 End Beg 0 dr + 15,623 5208 Beg laries & wages Expen or - 0 10,416 19,529 End 10.415 dr + End 29.945 Long term investment: cr - 250,000 Beg End 250.000 Utility Expense cr- dr + Beg dr + cr- Equipment 500,000 6,510 6.510 Beg End End 500.000 dr- Maintenance exp. crt I drt Beg Accumulated dep. Equ cr- 150,000 Beg 50000 200.000 End 6,510 End 6.510 dr + Building cr - dr + Interest expense cr- Beg 0 Beg 1 End 585,873 585.873 36,454 36.454 End dr + Income tax exp. cr- Beg 10,000 End 10.000 ACCT 1115 Unadjusted Trial balance As at December 31, 2019 Credit Cash Accounts Receivable Inventory Prepaid Insurance exp. Prepaid rent exp. Long term investments Equipment Accumulated dep. Equipment Building Debit 21,817 265,097 211,039 12,000 10,415 250,000 500,000 200,000 585,873 167,812 130,194 Accounts Payable Notes Payable Unearned sales Revenue Unearned Rent Revenue Wages & salaries payable Income Tax payable Bonds payable 23,435 350,000 490,582 323,675 875,644 Common Shares Retained earnings Sales Revenue Sales discount Cost of goods sold Rent expense Salaries & wages exp. Utility Expense Maintenance exp. Interest exp. Income tax exp. 5,468 494,737 9,114 29,945 6,510 6,510 36,454 10,000 Totals 2,454,978 2,561,341 X