Question

The Ending trial balance is not correct, can you help me with it. Thank you

Packing Inc.’s transactions during January 2019:

1. Jan. 1 - Issued 7,500 shares of no-par common stock for $12 per share.

2. Jan. 1 - Purchased a deliver van (used) for $8,000. Monthly depreciation for the van is $100.

3. Jan. 6 - Purchased office supplies on account for $16,000.

4. Jan. 10 - Performed repairs and maintenance on their computer equipment costing $3,500.

5. Jan. 12 - Purchased inventory for $75,000.

6. Jan. 15 - Declared and paid $10,500 in dividends to its shareholders.

7. Jan. 18 - Paid $35,000 to its suppliers for inventory purchased on credit in December 2018

8. Jan. 20 - Paid $16,000 for the supplies purchased on January 6.

9. Jan. 25 - Provided services for which a customer had paid $7,500 in December of 2018 (hint: see the deferred revenue account in the January 1, 2019 trial balance).

10. Jan. 31 - Paid its employees $25,000 for work performed from December 26 – January 25. $1,200 was for work performed in December 2018, and 23,800 was for work performed from January 1 – January 25, 2019.

11. During January Packing Inc. collected $145,000 in accounts receivable from customers (make one summary entry for the entire month).

12. During January Packing Inc. made credit sales for $205,000. The cost of the goods sold was $102,500 (make one summary entry for the entire month)

Other information:

1. At the end of January, Packing Inc. had $4,000 of office supplies on hand.

2. Monthly depreciation for the Furniture & Fixtures is $1500, and monthly depreciation for the computer equipment is $850.

3. The note payable for $15,000 is a 5-year note that matures on December 31, 2022. The interest on the note is 6% and is payable annually on each December 31st. Packing Inc. made their regularly scheduled interest payment of $900 on December 31, 2018.

4. During the period January 26 – January 31 employees earned an additional $4,500 which will be included in their February paycheck.

	Cash		90000
		Common Stock		90000
	van		8000
		cash		8000
	office supplies		16000
		Account Payable		16000
	maintenance expenses		3,500
		Cash		3,500
	Inventory		75000
		cash		75000
	Dividends		10,500
		cash		10,500
	Account Payable		35000
		cash		35000
	Account Payable		16000
		cash		16000
	Deferred Revenue		7500
		Service Revenue		7500
	Salaries and wages payable		1200
	Salaries and wages expenses		23800
		cash		25000
	cash		145000
		Account receivable		145000
	Account receivable		205000
		sales revenue		205000
	cost of goods sold		102500
		Inventory		102500

cash	145,200
Accounts Receivable	165,000
Inventory	58,200.00
Office Supplies	6,000
Van	8,000.00
Furniture & Fixtures	40,000.00
Computer Equipment	27,500.00
Accum. Dep. - F & F			2,000.00
Accum. Dep. - Comp. Eqp			1,500.00
Accounts Payable			14,000.00
Salaries Payable			0.00
Notes Payable			15,000.00
Deferred Revenue			0.00
Common Stock			187,000.00
Dividends	10,500.00
Retained Earnings			168,200.00
Service Revenue			7,500.00
Sales Revenue			205,000.00
COGS	102,500.00
Maintenance Expense	3,500.00
Salary and Wage Expense	23,800
Total	590,200.00		600,200.00

1 Trial Balance Summary As of January 1, 2019 Description Cash Accounts Receivable Inventory Furniture & Fixtures Computer Equipment 11 Accum. Dep.. F&F 12 Accum. Dep. - Comp. Eqp 13 Accounts Payable Salaries Payable 15 Notes Payable 16 Deferred Revenue Common Stock 18 Retained Earnings 19 Total Debit 83,200.00 105,000.00 85,700.00 40,000.00 27,500.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 341,400.00 Credit 0.00 0.00 0.00 0.00 0.00 2,000.00 1,500.00 49,000.00 1,200.00 15,000.00 7,500.00 97,000.00 168,200.00 341,400.00

Answer 1

1 B D E Unadjusted Adjustments Debit ($) Credit (S) | Debit ($) Credit (S) $ 145,200 $ 165,000 $ 58,200 $ 16,000 $ 12,000 $ 8,000 $ 40,000 $ 27,500 $ 2,000 $ 1,500 $ 1,500 $ 850 100 $ 14,000 $ 4,500 $ 15,000 $ 75 Trial Balance 2 Account Titles 3 Cash 4 Accounts Receivable 5 Inventory 6 Office Supplies 7 Van 8 Furniture & Fixtures 9 Computer Equipment 10 Accum. Dep. - F%F 11 Accum. Dep. - Comp. Eqp 12 Accum. Dep. - Van 13 Accounts Payable 14 Salaries Payable 15 Notes Payable 16 Interest Payable 17 Deferred Revenue 18 Common Stock 19 Retained Earnings 20 Dividends 21 Service Revenue 22 Sales Revenue 23 Cost of Goods Sold 24 Maintenance Expense 25 Salary and Wages Expense 26 Supplies Expense 27 Depreciation Expense - F&F 28 Depreciation Expense - Comp. Eqp. 29 Depreciation Expense - Van 30 Interest Expense 31 32 Total 33 F G Adjusted Debit ($) Credit (S) $ 145,200 $ 165,000 $ 58,200 $ 4,000 $ 8,000 $ 40,000 $ 27,500 $ 3,500 $ 2,350 $ 100 $ 14,000 $ 4,500 $ 15,000 $ 75 $ - $ 187,000 $ 168,200 $ 10,500 $ 7,500 $ 205,000 $ 102,500 $ 3,500 $ 28,300 $ 12,000 $ 1,500 $ 850 $ 100 $ 75 $ 187,000 $ 168,200 $ 10,500 $ 7,500 $ 205,000 $102,500 $ 3,500 $ 23,800 $ 4,500 $ 12,000 $ 1,500 $ 850 $ 100 $ 75 $600,200 $ 600,200 $ 19,025 $ 19,025 $607,225 $ 607,225

| Credit (S) Debit ($) Adjustments Credit ($) =B6-4000 Adjusted | Debit ($) Credit ($) =B3 =B4 =B5 =B6-E6 =B7 =B8 =B9 =C10+E10 =C11+E11 =E12 =C13 =E14 2000 1500 1500 850 100 =49000+16000-35000-16000 =1200-1200 15000 4500 =C15 А B 1 Trial Balance Unadjusted 2 Account Titles Debit (S) 3 Cash =83200+(7500*12)-8000-3500-75000-10500-35000-16000-25000+145000 4 Accounts Receivable =105000+205000-145000 5 Inventory =85700+75000-102500 6 Office Supplies =16000 7 Van =8000 8 Furniture & Fixtures 40000 9 Computer Equipment 27500 10 Accum. Dep. - F %F 11 Accum. Dep. - Comp. Eqp 12 Accum. Dep. - Van 13 Accounts Payable 14 Salaries Payable 15 Notes Payable 16 Interest Payable 17 Deferred Revenue 18 Common Stock 19 Retained Earnings 20 Dividends =10500 21 Service Revenue 22 Sales Revenue 23 Cost of Goods Sold 102500 24 Maintenance Expense =3500 25 Salary and Wages Expense =23800 26 Supplies Expense 27 Depreciation Expense - F & F 28 Depreciation Expense - Comp. 29 Depreciation Expense - Van 30 Interest Expense 31 32 Total =SUM(B3:B30) =(15000*6%*(1/12) =7500-7500 =97000+(7500*12) 168200 =E16 =C17 =C18 =C19 =B20 =7500 =205000 =C21 =C22 14500 12000 11500 850 100 175 =B23 =B24 =B25+D25 =D26 =D27 =D28 =D29 =D30 =SUMC3:C30) 1=SUM(F3:F30) =SUM(G3:630) | 33

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