Question: Does anyone know what error I've made when documenting my journal entries? The problem is that the credit and debit totals are not balanced.
I do not see the error... suggestions??


March 1 Began business by making a deposit in a company bank account of $72,000, in exchange
for 7,200 shares of $10 par value common stock.

March 1 Paid the current month's rent, $4,500.

March 1 Paid the premium on a one-year insurance policy, $3,300.

March 7 Purchased supplies on account from Parkview Company, $900.

March 10 Paid employee salaries, $2,200.

March 14 Purchased equipment from Hammond Company, $9,000. Paid $1,500 down and the balance was
placed on account. Payments will be $375.00 per month for twenty months. The first payment is due 4/1.
Note: Use Accounts Payable for the Balance Due.

March 15 Received cash for landscaping revenue for the first half of March, $4,896.

March 19 Made payment on account to Parkview Company, $450.

March 31 Received cash for landscaping revenue for the last half of March, $5,304.

March 31 Declared and paid cash dividend of $1,000.

MYJOUNRNAL ENTRIES***

General Journal
Date Description(Account Name) Debit Credit
1-Mar Bank Deposit-$72,000 (72 shares/10 stock) 72,000 72,000
1-Mar Insurance Policy -$3,300 3,300
1-Mar Rental Pymt $4,500 4,500
7-Mar Parkview Supply Purchase $900 900
10-Mar Employee Salaries $2,200 2,200
14-Mar Hammond Equipment Purchase $9000 9,000
14-Mar Hammond Equipment Dwn Pymt $1500 1,500
15-Mar Landscaping Acct Receivable $4,896 4,896
19-Mar Parkview Payment $450 450
31-Mar Landscaping Acct Receivable $5,304 5,304
31-Mar Payment $1000 1,000

14-Mar Hammond Mntly Pymt $375/mo 9,000


93,350 92,700

Here are what your journal entries should be:

Mar 1 Debit Cash and Credit Common Stock for $72,000

Mar 1 Debit Rent Expense and Credit Cash for $4,500

Mar 1 Debit Prepaid Insurance and Credit Cash for $3,300

Mar 7 Debit Supplies and Credit Accounts Payable - Paarkview Company for $900

Mar 10 Debit Salaries Expense and Credit Cash for $2,200

Mar 14 Debit Equipment for $9,000 Credit Cash for $1,500 Credit Accounts Payable - Hammond Company $7,500

Mar 15 Debit Cash and Credit Landscaping Revenue for $4,896

Mar 19 Debit Accounts Payable - Parkview Company and Credit Cash $450

Mar 31 Debit Cash and Credit Landscaping Revenue for $5,304

Mar 31 Debit Cash Dividends and Credit Cash for 1,000

Your Debits and Credits should equal $90,150

Your payment to Hammond Company will not be recorded until 4/1 also check your math i.e. additions and subtractions as your account balances may be off.

I have done this same exercise and the total Debits and Credits I came up with were $103,550 which also matches what the professor hinted they should be but he also said he had not verified the totals... Or are we making a big mistake somewhere?
Debits Credits
72,000 72,000
4,500 4,500
3,300 3,300
900 900
2,200 2,200
9,000 1,500
7,500
4,896 4,896
450 450
5,304 5,304
1,000 1,000
103,550 103,550

I have attached a Trial Balance in Excel 97-2003 format to show you what your account balances should be. Based on the information provided your debits and credits should equal $90,150

Sometimes the check figures or the solutions in the textbooks could be incorrect. I have seen this in a couple of times in my accounting textbooks. Also there could be information that has been posted that is different in your textbook, or there could be additional information in your problem that you have not provided.

Here is a guide to help you figure out what types of accounts have normal debit or credit balances:

D - Debit Balance
E - Expenses
A - Assets
D - Dividends/Owners Withdrawals

C - Credit Balance
U - Unearned Revenue
R - Revenues
L - Liabilities
S - Stockholders Equity/Owners Investment

A debit entry to an account with a normal debit balance will increase the account balance, while a credit entry will decrease the account balance.

A Credit entry to an account with a normal credit balance will increase the account balance, while a debit entry will decrease the account balance.

The 1500 and 7500 should be under credit and 9000 (equipment) debit remember your 7500 is balance due therefore, it should be under account payable which should be credited and a down payment of 1500 was make which is also credited the ending value should sum up to 103,550 for credits and debits. Hopefully my explanation helped

The explanation made above is for the Journal Entry

Can somebody help me with the General Ledger please...

That's what the entire General Ledger should look like after closing your entries

Can somebody help me with the General Ledger please....

OK that's what it should look like after closing all your entries

Anola,
Thanks so much for your response... If u don't mind could you post the comets answer... I mean the adjusting entries, adjusted TB, financial statements, closing entries and post closing TB... Please help me with this... I would highly appreciate your help...

What is your question and what have you attempted. If the readers can see what the information is and what has been attempted then we can assist you. Right now there has not been any information provided so we the readers do not know what you are having problems with.

My question is :
Prepare adjusting entries using the following information in the General Journal
Below. Show your calculations!

a) One month's insurance has expired.

b) The remaining inventory of supplies is $475.

c) The estimated depreciation on equipment is $150.

d) The estimated income taxes are $795.

I am trying to make adjusting entries, adjusting trial balance, Can anyone help

a. You need to calculate one months insurance. Take your original amount of prepaid and divide it my the total number of months. i.e. 12 months for a 1 year policy, 24 months for a 2 year policy, or 36 months for a 3 year policy. Your Debit will be to Insurance Expense and your Credit will be to Prepaid Insurance for the amount of insurance used in one month.

b. You have to take your Supplies account balance and subtract your actual onhand balance to get your adjusting entry amount. Your Debit will be to Supplies Expense and your Credit will be to Supplies for the amount of supplies calculated.

c. The amount is given, so your Debit will be to Depreciation Expense and your Credit will be to Accumulated Depreciation for the amount given.

d. The amount is given, so your Debit will be to Income Taxes Expense and your Credit will be to Income Taxes Payable for the amount given.

I have attached a sample Worksheet containing the trial balance, adjusting entries, and an adjusted trial balance so you can see what one looks like.

a. You need to calculate one months insurance. Take your original amount of prepaid and divide it my the total number of months. i.e. 12 months for a 1 year policy, 24 months for a 2 year policy, or 36 months for a 3 year policy. Your Debit will be to Insurance Expense and your Credit will be to Prepaid Insurance for the amount of insurance used in one month.

b. You have to take your Supplies account balance and subtract your actual onhand balance to get your adjusting entry amount. Your Debit will be to Supplies Expense and your Credit will be to Supplies for the amount of supplies calculated.

c. The amount is given, so your Debit will be to Depreciation Expense and your Credit will be to Accumulated Depreciation for the amount given.

d. The amount is given, so your Debit will be to Income Taxes Expense and your Credit will be to Income Taxes Payable for the amount given.

I have attached a sample Worksheet containing the trial balance, adjusting entries, and an adjusted trial balance so you can see what one looks like.

Thanks so much :) n

a. You need to calculate one months insurance. Take your original amount of prepaid and divide it my the total number of months. i.e. 12 months for a 1 year policy, 24 months for a 2 year policy, or 36 months for a 3 year policy. Your Debit will be to Insurance Expense and your Credit will be to Prepaid Insurance for the amount of insurance used in one month.

b. You have to take your Supplies account balance and subtract your actual onhand balance to get your adjusting entry amount. Your Debit will be to Supplies Expense and your Credit will be to Supplies for the amount of supplies calculated.

c. The amount is given, so your Debit will be to Depreciation Expense and your Credit will be to Accumulated Depreciation for the amount given.

d. The amount is given, so your Debit will be to Income Taxes Expense and your Credit will be to Income Taxes Payable for the amount given.

I have attached a sample Worksheet containing the trial balance, adjusting entries, and an adjusted trial balance so you can see what one looks like.

Hello pready,
As suggested I am doing the same.. However my adjusted trail balance doesn't match at all.. Can you please help me in solving this please... Can you check where am I doing wrong.
TRAILBALANCE:
This Sheet will be used for Requirements 2, 5, and 9

Requirement #2:

Post the March journal entries to the following T-accounts and compute ending balances.


Cash (111) Landscaping Revenue (411)
72000 4500 4896
4896 3300 5304
5304 2200
1500 Credit Balance $10200
450
1000
Debit Balance 69250



Prepaid Insurance (117) Rent Expense (511)
3300 275 4500

Debit Balance $4500
Debit Balance $3025


Supplies (119) Salaries Expense (512)
900 2200


Debit Balance 900 Debit Balance $2200


Equipment (144) Insurance Expense (513)
9000 275


Debit Balance $275

Debit balance $9000
Accumulated Depreciation-Equipment (145) Supplies Expense (514)
150 425



Credit balance $150 Credit balance $425


Accounts Payable (212) Depreciation Expense (515)
450 900 150
7500

Credit balance 7950 Debit balance $150


Income Tax Payable (213) Income Tax Expense (516)
795 795


Debit balance $795
Credit balance $795

Common Stock (311)
72000 Income Summary (517)




Credit Balance $72000
Retained Earnings (312)






Dividends (313)
1000

Debit Balance $1000


ADJUSTED ENTRIES:

Requirement #4:

Prepare adjusting entries using the following information in the General Journal
Below. Show your calculations!

a) One month's insurance has expired.

b) The remaining inventory of supplies is $475.

c) The estimated depreciation on equipment is $150.

d) The estimated income taxes are $795.

General Journal
Date Description(Account Name) Debit Credit
(a) Insurance expense 275
Prepaid Insurance 275
(1 month insurance expired)
(b) Supply expense 425
Supplies 425
(remaining inventory supplies)
© Depreciation expense 150
Accumulated depreciation--Equipment 150
Estimated depreciation on equitment)
(d) Income Tax Expense 795
Income Tax Payable 795



ADJUSTED TRAILBALANCE :
Flower Landscaping Corporation
Adjusted Trial Balance
March 31


Cash 69,250
Landscaping Revenue 10,200
Prepaid Insurance 3025
Rent Expense 4500
Supplies 900
Salary Expense 2,200
Equipment 9,000
Insurance Expense 275
Accumulated depreciation 150
Supplies Expense 425
Accounts Payable 7,950
Depreciation Expense 150
Income tax Payable 795
Income tax Expense 795
Common Stock 72,000
Dividends 1,000

91095 91520
Adjusted TRAILBALANCE doesn't match at all... Don know what am I missing in here.. Can you please help.. Its should be 91095 as per my professor. So, there is a differnce of $425.. PLease please please HELP

Thanks I got the correct adjusted trail balance... Thanks... please ignore my questiond that I asked for..

Attached is a Worksheet that shows what your trial balance, adjusting entries, and the adjusted trial balance should look like.

I got the same entries of you and the total that I get is 103,500 not 90,500

If you just add the totals for debits and credits of your journal entries your total will be 103,500 but when you do a trial balance the balance of your debits and credits will be 90,150.

The reason for the difference is that some transactions will reduce one account with a debit balance and increase one account with a debit balance, and some transactions will decrease one account with a debit balance and decrease one account with a credit balance.

OK Thank you so much

I have a question Why in the General Ledger in the Insurance Expense you have 275 in both parts debit and credit Is not only in the debit sie because we credited 275 to prepaid insurance?

The journal entry for the insurance was: Debit Insurance Expense and Credit Prepaid Insurance for the amount of insurance expired during the month. The calculation was the cost of the insurance premium purchased divided by 12 months to get one month of insurance expired.

The effects of the journal entry is that Prepaid Insurance was decreased (credited) and Insurance Expense was increased (Debited) by the amount of insurance expired in one month.

Did you look at my Worksheet to the Adjusted Trial Balance. The adjusting entry was made in the Adjustments columns and the net result of the adjusting entry is shown in the adjusted trial balance columns.

OK Thanks

Anola,
Thanks so much for ur response... If u don't mind could u post the comets answer... I mean the adjusting entries, adjusted TB, financial statements, closing entries and post closing TB... Please help me with this... I would highly appreciate your help...

Do you guys have the Financial statement? Really need help with it.

What do you need help with.

Start with your adjusted trial balance and create 4 columns; 2 for the Income Statement and 2 for the Balance Sheet. The only accounts that transfer to the Income Statement will be your revenues and expenses. Your other accounts will go on the balance sheet.

When you do your actual balance sheet your cash dividends will be subtracted from your retained earnings(net income on the Worksheet).

What do you need help with.

Start with your adjusted trial balance and create 4 columns; 2 for the Income Statement and 2 for the Balance Sheet. The only accounts that transfer to the Income Statement will be your revenues and expenses. Your other accounts will go on the balance sheet.

When you do your actual balance sheet your cash dividends will be subtracted from your retained earnings(net income on the Worksheet).

Pready,

Could u please help me in making a closing entries out of this financial statement.. I am very much confused about the RETAINED EARNINGS for this? Please help

Income Statement Statement of Retained Earnings Balance Sheet
For the Month Ending March 31 For the Month Ending March 31 March 31

Revenues: Retained Earnings, March 1 Assets:
Landscaping Revenue $10,200 Add: Net Income 1,855 Cash $69,250
Subtotal Prepaid Insurance 3,025
Expenses: Less: Dividends 1,000 Supplies 475
Rent Expense 4,500 Retained Earnings, March 31 $855 Equipment 9,000
Salaries Expense 2,200 Less: Accum. Depr. 150 8,850
Insurance Expense 275 Total Assets 81,600
Supplies Expense 425
Depreciation Expense 150 Liabilities:
Income Tax Expense 795 Accounts Payable 7,950
Total Expenses (-) 8,345 Income Tax Payable 795
Total Liabilities 8,745
Net Income $1,855 Stockholders' Equity:
Common Stock 72,000
Retained Earnings 855
Total Stockholders' Equity 72,855
Total Liabilities and
Stockholders' Equity $81,600

You should have the Worksheet for your financial statements. Now for the Statement of Retained Earnings you will start with the Retained Earnings Beginning Balance plus your Net Income minus your Cash Dividends equals your Retained Earnings, Ending Balance.

After you have made your financial statements you close out your income statements accounts to the Income Summary Account, then close out your Cash Dividends to your Retained Earnings. After this you will prepare a post-closing balance sheet.

Note: Use a Worksheet as it will help in preparing your financial statement. I have not used a Statement of Retained Earnings on a Worksheet, but you can add two columns between the Income Statement and the Balance Sheet. Just create a row for Retained Earnings, Beginning Balance and use Net Income, Cash Dividends, and create a row after your last totals row for Retained Earnings, Ending Balance.