Your client, Mr. Craig, hired you to go over their books in preparation for the tax return. Since you do not have access to their QBO profile, you will need to look at the following records and financial statements:

• General Ledger
• Trial Balance
• Income Statement
• Balance Sheet

  The company just started this year so we will not need to obtain the previous years financial information for comparison. Often times we can find additional red flags or unusual transactions/amounts by comparing this years ending balances with the previous ones.

  After having a meeting with Mr. Craig, you gather the facts below:

• 11/01/2021, $7,400 purchased Liability insurance policy coverage for 1 year on account
• 11/01/2021, $11,700 Rent paid for six months
• 12/01/2021 $2,750 purchased Machinery Equipment on account
• 12/10/2021 $478.50 TX sales taxes were filed and paid for November

• *In addition to the points above, there are 5 errors you need to find and correct.

  Requirements:

• Provide the journal entries that will be needed to correct the records in QBO
• Using those journal entries, prepare an adjusted Trial Balance report