My unadjusted balance isn't adding up nor can I equal out my balances.

1 ACCOUNTING CYCLE PROBLEM The Watson Company has been in business for one year and sells electronic merchandise and accessories. On March 31, 2009, the end of the fiscal year, Watson had the following accounts and balances. Cash Taxes Payable Accounts Payable Furniture & Fixtures Retained Earnings Office Supplies $ 50,000 6,000 20,000 15,000 63,000 $ 2,000 Prepaid Insurance Notes Payable Accounts Receivable Common Stock Vehicles Merchandise Inventory $ 5,000 30,000 12,000 50,000 60,000 $ 25,000 Requirements: 1. Using the above information, prepare a balance sheet for March 31, 2009. 2. Set-up the General Ledger by creating T-accounts for each of the accounts listed above and drop-in the beginning balances for April 1, 2009. You will also have to create other T-accounts for additional accounts that will be used in April 2009 (see below). - Prepaid Warehouse Rent - Accumulated Depreciation - F&F - Accumulated Depreciation - Vehicles - Interest Payable - Dividends Payable - Unearned Revenue - Sales - Cost of Goods Sold - Depreciation Expense - F&F - Depreciation Expense - Vehicles - Warehouse Rent Expense - Equipment Rent Expense - Wages Expense - Advertising Expense - Office Supplies Expense - Interest Expense - Utilities Expense - Insurance Expense - Income Summary 3. Make the journal entries for the following April 2009 regular transactions in a two column Journal. April 2009 Regular Journal Entries 4-1 Leased a warehouse for one year. Signed a contract and paid $ 24,000 for the entire year. 4-3 Sold 5,000 shares of no-par common stock for $ 2 per share. 4-5 Purchased $ 4,000 of merchandise inventory on account. 4-7 Sold merchandise inventory to a customer for $ 20,000 cash. The cost of the inventory sold was $ 7,000. 2 4-9 Sold $ 30,000 of merchandise inventory on account to a customer. The cost of the inventory sold was $ 12,000. 4-11 Paid $ 5,000 for the rental of equipment for the month of April 2009. 4-13 Paid $ 6,000 to employees for wages earned during April 2009. 4-15 Paid $ 2,000 of the amount due in Accounts Payable. 4-17 Paid $ 500 cash for advertising for April 2009. 4-19 Collected $ 9,000 of the outstanding Accounts Receivable. 4-21 Sold $ 12,000 of merchandise inventory on account to a customer. The cost of the inventory sold was $ 3,000. 4-22 Purchased office furniture for $ 80,000. These items were purchased on a notes payable that will be due in 120 days and has an interest rate of 8%. 4-25 Received $ 7,000 from a customer as a deposit for future sales. 4-27 Paid-off the original $ 30,000 Notes Payable. The payoff included $ 2,000 of interest (i.e. principal = $ 30,000; interest = $ 2,000). 4-29 Sold merchandise inventory for $ 2,000 cash. The cost of the inventory sold was $ 1,200. 4-30 The Board of Directors declared a $ 0.15 cash dividend per share of common stock. There are 30,000 shares of common stock outstanding (this includes the 5,000 shares that were sold on 4-3). 4. Post the regular journal entries to the General Ledger (in this problem, represented by Taccounts). 5. Compute the ending balance in each General Ledger T-account. 6. Prepare an unadjusted trial balance for the month of April 2009. 7. Make journal entries for adjustments required at the end of April 2009. April 2009 Adjusting Journal Entries 4-30 Recorded depreciation for April: Furniture and Fixtures $ 3,000; Vehicles $ 5,000. 4-30 Received utility bill for $ 400 that will be paid in May 2009. 3 4-30 One month of the warehouse lease expired during April. 4-30 There was $ 1,200 of unused supplies at the end of April. 4-30 A review of the insurance policies revealed that $ 2,000 had expired during April. 4-30 A sale of merchandise inventory made late in the day on April 30 had not been recorded by the end of the day. The sale was for $ 800 and was made on account. The cost of the inventory sold was $ 400. 4-30 Recorded accrual for interest expense incurred on notes payable - used to purchase sofa (principal x rate x time -for time, use 360 days for the year). 8. Post the adjusting journal entries to the General Ledger (in this problem, represented by T-accounts). 9. Compute the ending balance in each General Ledger T-account. 10. Prepare an adjusted trial balance for the month of April 2009. 11. Use the adjusted trial balance to prepare an Income Statement, a Statement of Retained Earnings, and a Balance Sheet for April 2009. 12. Make journal entries to close the April 2009 temporary accounts in preparation for the upcoming month (May 2009). 13. Post the closing journal entries to the General Ledger (in this problem, represented by Taccounts). 14. Compute the ending balance in each General Ledger T-account. 15. Prepare a post-closing trial balance