Please review my accounting here. I have completed the Journal entries along with the T accounts.
There is a mistake here that I am not seeing as I am unable to achieve the provided check figures provided. (Ending Cash = 834,914, Total Ending = 2,712,443)
Can we revise and show work on corrections on errors made?
See Balance Sheet for T-Accounts. Building Value is listed under property, plant & equipment.
T Accounts: Please help
Transaction and Adjustment Data: 1 Paid the $8,377 in salaries owed at year end 2019. 2 Collected the $22,508 of accounts receivable due to them at year end 3 Paid the $381,796 owed on account at year end 2019. 4 Purchased additional Furniture & Equipment on January 2, 2020 costing $76,000 due to increased shipping activities for their 5 Paid $3,150 to renew their annual insurance policy on March 1, 2020. 6 Purchased a new computerized sales system on April 1, 2020 for $78,000 in cash. The system has a useful economic life of 3 years and will be depreciated monthly using the straight line method. The 7 Made a payment on the long-term note of $90,000. 8 Made a payment on the mortgage note of $16.800. 9 Paid the interest of $24,653 that was payable at year end 2019. 10 Paid the taxes owed of $41,670 at year end 2019. 11 Issued 22,000 shares of Common Stock on May 1, 2020 for $10 per sh 12 Sales of woolen goods for 2020 were $2,542,690. At December 31, 2020, $41,550 of this amount was still listed as receivable. 13 The total cost of the goods sold during 2020 was $1.665,462. 14 Purchased inventory during the year that cost $1,690,000. The company owed $411,050 on these purchases at year end 2020, 15 Total Salaries Expense for the year were $129,050 and total interest expense was $20,301. Salaries of $8,420 and interest expense of $20,301 are still payable at year end 2020. 16 Supplies inventory of $3,677 was purchased with cash during 2020. Total supplies inventory of $578 was still on hand at year end 2020. 17 Depreciation expense needs to be recorded on the buildings, furniture and equipment, and the new computer system at year end 2020. All items are depreciated on a monthly basis using straight line depreciation. The building has a useful life of 40 years and the furniture and equipment is depreciated over 7 years--there is no salvage value on the buildings or the furniture and equipment. As noted above, the new sales system has a useful life of 3 years and 18 The Prepaid Insurance and the Supplies Inventory need to be adjusted at year end 2020 so that the proper amount for insurance expense and supplies expense is recorded. See items 5 and 16 for details. (If you adjusted the supplies in #16, do not do it again) 19 Estimated income tax payments of $132,000 were made during the ye 20 The company paid out cash dividends totaling $2,000 to its sharehol 21 The company determined that a customer account was not collectible, and wrote off $135 on December 31. 22 The company believes that 3% of ending Accounts Receivable is a reasonable estimate of its Allowance for Doubtful Accounts balance. The Company uses the allowance method to record bad debts. 23 Tax expense is 21% of Income before Income Tax. Credit Journal Entries: 1 Salaries Payable Cash Debit 8,377 8,377 22,508 2 Cash Accounts receivable 22,508 381,796 3 Accounts Payable Cash 381,796 76,000 4 Furniture & Equipment Cash 76,000 5 Prepaid Insurance cash 3,150 3,150 6 Computer Sales System Cash 78,000 78,000 7 Long term note payable Cash 90,000 90,000 16,800 8 Mortgage note payable Cash 16,800 24,653 9 Interest Payable Cash 24,653 10 Taxes Payable Cash 41,670 41,670 220,000 11 Cash Common Stock 220,000 12 Cash Accounts Receivable Sales 2,501,140 41,550 2,542,690 13 Cost of Goods Sold Inventory 1,665,462 1,665,462 1,690,000 14 Purchased Inventory Accounts Payable Cash 411,050 1,278,950 129,050 20,301 15 Salaries and Wages Expense Interest Expense Cash Salary Payable Interest Payable 16 Supplies Inventory Cash Supplies expense Supplies 120,630 8,420 20,301 3,677 3,677 3,099 3,099 17 Depreciation Expense 41,357 Accum Depr-Building Accum Depr-Equipment & Furniture Accum Depr-Sales System 11,750 10,857 18,750 2,625 18 Insurance Prepaid Insurance 2,625 132,000 19 Income Tax payable Cash 132,000 20 Retained Earnings Cash 2,000 2,000 135 21 Allowance for doubtful accounts Accounts receivable 135 1,224 22 Bad Debt Expense Allowance for Doubtful accounts 1,224 142,710 23 Tax Expense Tax payable 142,710 Balance Sheet Current Assets Cash Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Supplies Inventory Prepaid Insurance Total Current Assets X XXX 348,969 22,508 (465) 1,090,844 664 545 1,463,065 Property, Plant, and Equipment Land Buildings Accumulated Depreciation--Buildings Furniture and Equipment X Accumulated Depreciation--Furniture and EqX Net Property, Plant, and Equipment xxx 180,000 470,000 (47,000) 18,300 (10,457) 610,843 Total Assets 2,073,908 $ Liabilities and Stockholders' Equity Current Liabilities Accounts Payable Salaries Payable Interest Payable X Taxes Payable Total Current Liabilities 381,796 8,377 24,653 41,670 456,496 Long-term Liabilities Mortgage Note Payable Note Payable Total Long-term Liabilities 381,333 235,000 616,333 Total Liabilities 1,072,829 Stockholders' Equity Common Stock, 5,000 shares issued and outs X Retained Earnings X Total Stockholders' Equity 50,000 951,079 1,001,079 Total Liabilities and Stockholders' Equity 2,073,908 Salaries & Wages Expense 129,050 129,050 3 15 BB 5 B 2 11 12 Prepaid Insurance 545 2,625 18 3,150 1,070 Accounts Payable 381,796 381,796 BB 411,050 14 411,050 Common Stock 50,000 BB 220,000 11 270,000 3 4 5 6 Supplies Expense 3,099 3,099 16 7 Land 180,000 BB 1 Cash 348,969 8,377 22,508 381,796 220,000 76,000 2,501,140 3,150 78,000 90,000 10,000 16,800 24,653 41,670 1,278.950 "0.000 120 630 3,677 132,000 2,000 834,914 Salaries Payable 8,377 8,377 BB 8,420 15 8,420 Retained Earnings 2,000 951,079 BB 536,862 1,485,941 Insurance Expense 2,625 2,625 18 Building 470,000 BB 8 9 10 14 15 16 19 20 Bad Debt Expense 1,224 1,224 9 22 urniture and Equipmel BB 18,300 4 76.000 94.300 Interest Payable 24,653 24,653 BB 20,301 15 20,301 Sales Revenue 2,542,690 2,542,690 12 Depreciation Expense 41.357 41,357 17 mputerized Sales Sust 6 78,000 10 19 B 12 Accounts Receivable 22,508 22,508 41,550 135 41,415 Taxes Payable 41,670 41.670 BB 132,000 142,710 10.710 2 21 Interest Expense 20,301 20,301 15 Cost of Goods Sold 1,665,462 1,665,462 Accum Depr-Building 47,000 BB 11,750 17 58,750 Mortgage Note Payable 16,800 381,333 BB 364,533 Tax Expense 142,710 142,710 8 23 llowance for Doubtful Acc 21 135 465 1,224 1,554 BB 22 7 ccum Depr-Furn&Equ 10,457 BB 10,857 17 21,314 Note Payable 90,000 235,000 BB 145.000 13 Merchandise Inventory 1,090.844 1,665,462 1,690.000 1.115.382 B 14 ccum Depr-Sales Syste 18.750 17 16 BB 16 Supplies Inventory 664 3,099 3,677 1242 Transaction and Adjustment Data: 1 Paid the $8,377 in salaries owed at year end 2019. 2 Collected the $22,508 of accounts receivable due to them at year end 3 Paid the $381,796 owed on account at year end 2019. 4 Purchased additional Furniture & Equipment on January 2, 2020 costing $76,000 due to increased shipping activities for their 5 Paid $3,150 to renew their annual insurance policy on March 1, 2020. 6 Purchased a new computerized sales system on April 1, 2020 for $78,000 in cash. The system has a useful economic life of 3 years and will be depreciated monthly using the straight line method. The 7 Made a payment on the long-term note of $90,000. 8 Made a payment on the mortgage note of $16.800. 9 Paid the interest of $24,653 that was payable at year end 2019. 10 Paid the taxes owed of $41,670 at year end 2019. 11 Issued 22,000 shares of Common Stock on May 1, 2020 for $10 per sh 12 Sales of woolen goods for 2020 were $2,542,690. At December 31, 2020, $41,550 of this amount was still listed as receivable. 13 The total cost of the goods sold during 2020 was $1.665,462. 14 Purchased inventory during the year that cost $1,690,000. The company owed $411,050 on these purchases at year end 2020, 15 Total Salaries Expense for the year were $129,050 and total interest expense was $20,301. Salaries of $8,420 and interest expense of $20,301 are still payable at year end 2020. 16 Supplies inventory of $3,677 was purchased with cash during 2020. Total supplies inventory of $578 was still on hand at year end 2020. 17 Depreciation expense needs to be recorded on the buildings, furniture and equipment, and the new computer system at year end 2020. All items are depreciated on a monthly basis using straight line depreciation. The building has a useful life of 40 years and the furniture and equipment is depreciated over 7 years--there is no salvage value on the buildings or the furniture and equipment. As noted above, the new sales system has a useful life of 3 years and 18 The Prepaid Insurance and the Supplies Inventory need to be adjusted at year end 2020 so that the proper amount for insurance expense and supplies expense is recorded. See items 5 and 16 for details. (If you adjusted the supplies in #16, do not do it again) 19 Estimated income tax payments of $132,000 were made during the ye 20 The company paid out cash dividends totaling $2,000 to its sharehol 21 The company determined that a customer account was not collectible, and wrote off $135 on December 31. 22 The company believes that 3% of ending Accounts Receivable is a reasonable estimate of its Allowance for Doubtful Accounts balance. The Company uses the allowance method to record bad debts. 23 Tax expense is 21% of Income before Income Tax. Credit Journal Entries: 1 Salaries Payable Cash Debit 8,377 8,377 22,508 2 Cash Accounts receivable 22,508 381,796 3 Accounts Payable Cash 381,796 76,000 4 Furniture & Equipment Cash 76,000 5 Prepaid Insurance cash 3,150 3,150 6 Computer Sales System Cash 78,000 78,000 7 Long term note payable Cash 90,000 90,000 16,800 8 Mortgage note payable Cash 16,800 24,653 9 Interest Payable Cash 24,653 10 Taxes Payable Cash 41,670 41,670 220,000 11 Cash Common Stock 220,000 12 Cash Accounts Receivable Sales 2,501,140 41,550 2,542,690 13 Cost of Goods Sold Inventory 1,665,462 1,665,462 1,690,000 14 Purchased Inventory Accounts Payable Cash 411,050 1,278,950 129,050 20,301 15 Salaries and Wages Expense Interest Expense Cash Salary Payable Interest Payable 16 Supplies Inventory Cash Supplies expense Supplies 120,630 8,420 20,301 3,677 3,677 3,099 3,099 17 Depreciation Expense 41,357 Accum Depr-Building Accum Depr-Equipment & Furniture Accum Depr-Sales System 11,750 10,857 18,750 2,625 18 Insurance Prepaid Insurance 2,625 132,000 19 Income Tax payable Cash 132,000 20 Retained Earnings Cash 2,000 2,000 135 21 Allowance for doubtful accounts Accounts receivable 135 1,224 22 Bad Debt Expense Allowance for Doubtful accounts 1,224 142,710 23 Tax Expense Tax payable 142,710 Balance Sheet Current Assets Cash Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Supplies Inventory Prepaid Insurance Total Current Assets X XXX 348,969 22,508 (465) 1,090,844 664 545 1,463,065 Property, Plant, and Equipment Land Buildings Accumulated Depreciation--Buildings Furniture and Equipment X Accumulated Depreciation--Furniture and EqX Net Property, Plant, and Equipment xxx 180,000 470,000 (47,000) 18,300 (10,457) 610,843 Total Assets 2,073,908 $ Liabilities and Stockholders' Equity Current Liabilities Accounts Payable Salaries Payable Interest Payable X Taxes Payable Total Current Liabilities 381,796 8,377 24,653 41,670 456,496 Long-term Liabilities Mortgage Note Payable Note Payable Total Long-term Liabilities 381,333 235,000 616,333 Total Liabilities 1,072,829 Stockholders' Equity Common Stock, 5,000 shares issued and outs X Retained Earnings X Total Stockholders' Equity 50,000 951,079 1,001,079 Total Liabilities and Stockholders' Equity 2,073,908 Salaries & Wages Expense 129,050 129,050 3 15 BB 5 B 2 11 12 Prepaid Insurance 545 2,625 18 3,150 1,070 Accounts Payable 381,796 381,796 BB 411,050 14 411,050 Common Stock 50,000 BB 220,000 11 270,000 3 4 5 6 Supplies Expense 3,099 3,099 16 7 Land 180,000 BB 1 Cash 348,969 8,377 22,508 381,796 220,000 76,000 2,501,140 3,150 78,000 90,000 10,000 16,800 24,653 41,670 1,278.950 "0.000 120 630 3,677 132,000 2,000 834,914 Salaries Payable 8,377 8,377 BB 8,420 15 8,420 Retained Earnings 2,000 951,079 BB 536,862 1,485,941 Insurance Expense 2,625 2,625 18 Building 470,000 BB 8 9 10 14 15 16 19 20 Bad Debt Expense 1,224 1,224 9 22 urniture and Equipmel BB 18,300 4 76.000 94.300 Interest Payable 24,653 24,653 BB 20,301 15 20,301 Sales Revenue 2,542,690 2,542,690 12 Depreciation Expense 41.357 41,357 17 mputerized Sales Sust 6 78,000 10 19 B 12 Accounts Receivable 22,508 22,508 41,550 135 41,415 Taxes Payable 41,670 41.670 BB 132,000 142,710 10.710 2 21 Interest Expense 20,301 20,301 15 Cost of Goods Sold 1,665,462 1,665,462 Accum Depr-Building 47,000 BB 11,750 17 58,750 Mortgage Note Payable 16,800 381,333 BB 364,533 Tax Expense 142,710 142,710 8 23 llowance for Doubtful Acc 21 135 465 1,224 1,554 BB 22 7 ccum Depr-Furn&Equ 10,457 BB 10,857 17 21,314 Note Payable 90,000 235,000 BB 145.000 13 Merchandise Inventory 1,090.844 1,665,462 1,690.000 1.115.382 B 14 ccum Depr-Sales Syste 18.750 17 16 BB 16 Supplies Inventory 664 3,099 3,677 1242
