[rimmel]

I am taking a business course, and I got stuck on this question. The first part of the question A) says to journalize the opening entry I did that. B says Journalize the December transactions, using accounts on the balance sheet and in the chart of accounts; I did that. C says Post the opening entry and the December journal entries to the ledger. Prepare a trial balance (this is where I get stuck). I tried so many different options I can't get the balances to balance I tried everything; it's really frustrating that's why I decided to ask. I don't know maybe it's a minor thing I can't see, but I just need help! Please! I need help with the trial balance. Any help is appreciated! Thank You! :)
15. Following is the December 1 balance sheet for the Lakeside Bed and Breakfast, owned by Janice Stowe, as well as the December transactions that took place, and the chart of accounts.
Lakeside Bed and Breakfast
Balance Sheet December 1, 20--

Assets

Cash $6600
Supplies 2400
Land 80 000
Building 200 000
Furniture and Equipment 10 000
Automobile 7200
Total Assets $306 200

Liabilities

Accounts Payable/
United Supplies $1000
Bank Loan 20 500
Mortgage Payable 125 000
Total Liabilities 146 500


Owner's Equity
J. Stowe, Capital 159 700
Total Liabilities and
Owner's Equity $306 200

December transactions:
Dec. 1 Paid $100 for automobile expenses. Cheque 279
2 J. Stowe withdrew $150 for personal use. Cheque 280
3 Paid $1000 to United Supplies on account. Cheque 281

3 Paid $175 for the month's telephone charges. '
Cheque 282
4 Received cash, $900, for room rentals for the week
5 Purchased cleaning supplies from United Supplies, $120,
but did not pay for them. Invoice 39586

10 Paid $125 for repairs to Stowe's personal car.
Cheque 283
11 Bought a printer for the office for $200. Cheque 284

11 Received cash, $1500, for room rentals for the week
12 Paid $75 for postage stamps (General Expense). Cheque
285
12 Paid the hydro bill, $250, and the water bill, $155. Cheque 286 and Cheque 287
14 Paid $275 for the printing of an advertising brochure.
Cheque 288
15 Paid $45 for a small advertisement in the local
newspaper. Cheque 289
15 Paid $250 to J. St^efwe, the owner, for her own use. Cheque 290
15 Paid salaries for; the first half of the month, $850. Cheque 291
17 The bank sent a memorandum informing J. Stowe that $350 had been taken out the business's bank account to pay for interest on the bank loan.
19 Received $1850 cash for room rentals for the week
20 Received a $225 bill from United Supplies for new linen
and towels. Terms 30 days. Invoice 305466
23 Received a $85 bill from Westend Motors for gasoline and oil used in the business car. Invoice 366 (A new Account will have to be opened for Westend Motors.)
25 Paid $345 cash to United Supplies, on account.
Cheque 292
26 Received $1525 cash for room rentals for the week
31 Paid salaries for the rest of the month, $1225 cash. Cheque 293


Chart of accounts:

Chart of Accounts

Account No
Cash 100
Supplies 102
Land 150
Building 151
Furniture and Equipment 152
Automobile 153
Accounts Payable — United Supplies 200
Accounts Payable — Westend Motors 201
Bank Loan 220
Mortgage Payable 221
J. Stowe, Capital 300
J. Stowe, Drawings 301
Room Rentals 400
Advertising Expense 500
General Expense 501
Salaries Expense 502
Telephone Expense 503
Utilities Expense 504
Automobile Expense 505
Interest Expense 506

[Just Looking]

Since you have done the journal entries and trial balance, why don't you post them? We can check them and see what the problem is.

Another option if you want to try and find your error is to first double check that you didn't make any mistakes in posting your original TB (does it balance?), or your entries (do debits and credits balance?), your extensions to come up with the adjusted tiral balance. Look at the difference between debits and credits. Is there an amount that matches any of the original accounts or the entries? Is there an entry that matches 1/2 of the difference? Are you off by a multiple of 9? If so, look for a transposition error. For example, you shoud have written 2,400 but wrote 4,200 - an error of 1800, which is a multiple of 9.

[rimmel]

This is the first part of my answer; the journal. Tell if this is correct.

Date Account and Explanation Debit Credit
Dec. 1 Automobile Expense 100
Cash 100


Dec.2 J.Stowe, Drawings 150
Cash 150

Dec.3 Accounts Payable/United Supplies 1000
Cash 1000


Dec.3 Telephone Expense 175
Cash 175

Dec.4 Cash 900
Room Rentals 900

Dec.5 Supplies 120
Accounts Payable/United Supplies 120

Dec.6 Automoblie Expense 125
Cash 125

Dec.11 Furniture and Equipment 200
Cash 200

Dec.11 Cash 1500
Room rentals 1500

Dec.12 General Expense 75
Cash 75

Dec.12 Utilities Expense 405
Cash 405

Dec.14 Advertising Expense 275
Cash 275

Dec.15 Advertising Expense 45
Cash 45

Dec.15 J.Stowe, Drawings 250
Cash 250

Dec.15 Salaries Expense 850
Cash 850

Dec.17 Interest Expense 350
Cash 350

Dec.19 Cash 1850
Room Rentals 1850

Dec.20 Supplies 225
Accounts Payable/United Supplies 225

Dec.23 Automoblie Expense 85
Accounts Payable/Westend Motors 85

Dec.25 Accounts Payable/United supplies 345
Cash 345

Dec.26 Cash 1525
Room Rentals 1525

Dec.31 Salaries Expense 1225
Cash 1225
I didn't put the explanation for time purposes, but I did on my actual work. Then part 2 of the question says post the opening entry and the December journal entries to the ledger (they gave me a template to put all the data). This is what I did:

General Ledger
Account: Cash

Date
20-- Items/Particulars P.R. Debit Credit Balance
Dec.1 Opening Entry J48 6600 6600
Dec.1 J48 100 6500
Dec.2 J48 150 6350
Dec.3 J48 1000 5350
Dec.3 J48 175 5175
Dec.4 J48 900 6075
Dec.10 J48 125 5950
Dec.11 J48 200 5750
Dec.11 J48 1500 7250
Dec.12 J48 75 7175
Dec.12 J48 405 6770
Dec.14 J48 275 6495
Dec.15 J48 45 6450
Dec.15 J48 250 6200
Dec.15 J48 850 5350
Dec.17 J48 350 5000
Dec.19 J48 1850 6850
Dec.25 J48 345 7195
Dec.26 J48 1525 8720
Dec.31 J48 1225 7435

Tell me if I am right so far... to be continued. Thanks for your help!

[Just Looking]

You did a good job on your journal entries.

I found 2 mistakes in posting to the ledger. Look at Dec. 25. It is a credit to cash, but you added it to the balance. Look at Dec 26 to Dec 31. There is a subtraction error. Hopefully, that will put you in balance.

[rimmel]

For December 25th the $345 is not in the balance column it is in the credit column; anyway I re calculated, and I came up with $6804 for the total amount of cash. The rest of accounts for the ledger sre:

General Ledger

Account: Supplies

Date Items/Particulars P.R. Debit Credit Balance
Dec.1 Opening Entry J48 2400 2400
Dec.5 J48 120 2520
Dec.20 J48 225 2745

Account: Furniture and Equipment

Date Items/Particulars P.R. Debit Credit Balance
Dec.1 Opening Entry J48 10 000 10 000
Dec.11 J48 200 10 200

Account: Automobile Expense

Date Items/Particulars P.R. Debit Credit Balance
Dec.1 J48 100 100
Dec.10 J48 125 225
Dec.23 J48 85 310

Account: Telephone Expense

Date Items/Particulars P.R. Debit Credit Balance
Dec.3 J48 175 175

Account: General Expense

Date Items/Particulars P.R. Debit Credit Balance
Dec.12 J48 75 75

Account: Utilities Expense

Date Items/Particulars P.R. Debit Credit Balance
Dec.12 J48 405 405

Account: Advertising Expense

Date Items/Particulars P.R. Debit Credit Balance
Dec.14 J48 275 275
Dec.15 J48 45 320

Account: Salaries Expense

Date Items/Particulars P.R. Debit Credit Balance
Dec.15 J48 850 850
Dec.31 J48 1225 2075

Account: Interest Expense

Date Items/Particulars P.R. Debit Credit Balance
Dec.17 J48 350 350

Account: Accounts Payable/United Supplies

Date Items/Particulars P.R. Debit Credit Balance
Dec.1 Opening Entry J48 1000 1000
Dec.3 J48 1000 2000
Dec.5 J48 120 1880
Dec.20 J48 225 1655
Dec.25 J48 345 2000

Account: J.Stowe, Drawings

Date Items/Particulars P.R. Debit Credit Balance
Dec.2 J48 150 150
Dec.15 J48 250 400

Account: Accounts Payable/Westend Motors

Date Items/Particulars P.R. Debit Credit Balance
Dec.23 J48 85 85

Account: Room Rentals

Date Items/Particulars P.R. Debit Credit Balance
Dec.4 J48 900 900
Dec.11 J48 1500 2400
Dec.19 J48 1850 4250
Dec.26 J48 1525 5775

Lakeside Bed and Breakfast
Trial Balance
December 1, 20--

Account Debit Credit
Cash $6804
Supplies 2745
Furniture and Equipment 10200
Automobile Expense 310
Telephone Expense 175
General Expense 75
Utilities Expense 405
Ad Expense 320
Salaries Expense 2075
Interest Expense 350
Accounts Payable/United Supplies $2000
J.Stowe, Drawings 400
Room rentals 5775
Accounts Payable/Westend Motors 85
------- --------
$23,459 $8,260

See I can't get them to balance; it is way off. The difference is 15,199. I really need help! I don't know what I am doing wrong. I worked it out so many different ways, and it's still not working. I am missing something, but I don't know what it is? Thanks, again for your help!

[Just Looking]

Little thing, but I came up with 6,805 for cash.

You are only listing the accounts that had transactions when seeing if you are in balance. For example, you don't show Land or the Bank Loan. There are others. This is the biggest problem, so if you don't understand why they need to be included please ask.

On Dec. 3, you paid the $1000 balance owed to United Supplies. When you posted this, you now show you owe them $2,000. Your two purchases of $120 and $225 should increase that account (you owe them once again), but you are subtracting the amounts. You paid them $345 due on Dec. 25, but added this to the balance in the account. It seems there is confusion on Accounts Payable. If you don't understand, please ask.

In your totals to see if you are in balance (23,459 and 8,260), you are including the Owner Draws as a credit. Look at the balance in your ledger - should it be a debit or credit - plus draws are a reduction to Equity.

[pready]

See attached Worksheet for your account balances.

Your Dec 10 transaction should be a Debit to the owners drawing account and a credit to Cash for the payment for the owners personal vehicle.

[rimmel]

Ok, so I got the trial balance to balance (thanks for your help!! ) and I did the income statement, but now I have another issue. When I did the balance sheet, doesn't balance on both sides. Aren't you supposed to just put the orginial accounts?

[pready]

Net income from the income statement needs to be added to the balance sheet. The difference between your debits and credits should equal net income from the income statement. The difference bwtween the debits and credits in your income statement is your net income.

[rimmel]

I did the income statement, and it still does not work out. Revenue I got 5775 and for expenses I got 3585 I subtracted those two amounts and got a net income of $2190. So, do add the net income to both sides of the balance sheet or just on the debit side? I tried both and it still doesn't work? The difference between debit and credits is $1750. This is what the income statement looks like:

Revenue
Room Rentals $5775

Expenses
Automobile 185
Telephone 175
General 75
Utilities 405
Advertising 320
Salaries 2075
Interest 350

Total expenses $3585
Net Income $2190

So I don't what I am doing wrong? Maybe you can see it. By the way thanks again!!

[pready]

Net Income will be a Credit to your Balance sheet worksheet. You are Probably missing the drawing account, which is a debit to the balance sheet on the worksheet. Also your revenues and expense are temporary accounts, therefore they will not show up on the balance sheet. Only add Net Income as a credit to the balance sheet section of the worksheet.

I have attached an updated worksheet with the Income Statement and Balance Sheet sections added.

When you do your post-closing balance sheet the drawing account will be subtracted from your capital account and net income will be added to the capital account, as these accounts will not appear on the post-closing balance sheet section of the worksheet.

[rimmel]

Thanks!! All your info helped. :)

[athal]

Journalizing opening trial balance journal voucher. What does it mean?