why does my Trial Balance not balance
Question and Rubric Assignment #4 – The Accounting Cycle - Review (15%) This assignment relates to the following Course Learning Requirements: CLR 2: Prepare financial statements including the balance sheet, income statement and statement of owner's equity. CLR 3: Apply the rules of debit and credit to record business transactions in T-accounts and the General ledger. CLR 4: Prepare and explain each step in the accounting cycle including: posting journal entries to the general ledger, preparing a trial balance, making period-end adjusting entries, preparing an adjusted trial balance, and closing the book of accounts. Objective of this Assignment: The objectives of this assignment are: 1. Review and reinforce learning from Modules 1-8. 2. Reinforce all steps of the Accounting Cycle 3. Review preparation of reversing entries 4. Practice completion of work using MS-Excel. Pre-Assignment Instructions: 1. To prepare you for this assignment, review the content of module 9 , including the embedded learning activities. 2. Review feedback from Assignment 2 and 3 Assignment Tasks: 1. This assignment is worth 100 points and is worth 15% of your final grade. 2. Your assignment must be completed and submitted using MS Excel. 3. Your completed assignment file should be named lastname_firstname_ACC2201_Assignment_4 4. Please complete each part on the worksheets as provided in this file. 5. You should make best use of Excel formulas and formatting, whenever possible. 6. Your assignment must be completed and submitted via the course website by the date indicated on the Course Calendar. Assignment Grading Rubric (15%) Question 1RequirementsPoints Part 1Journalize and Post April Entries23 Part 2Prepare an Unadjusted Trial Balance6 Part 3Journalize and Post Adjusting Entries20 Part 4Prepare an Adjusted Trial Balance8 Part 5Prepare Financial Statements 20 Part 6Journalize and Post Closing Entries12 Part 7Prepare a Post Closing Trial Balance5 Part 8Journalize Reversing Entries6 Total Points100 Assignment #4 – The Accounting Cycle - Review - 100 Marks Comprehensive Question- Susie's Commercial Cleaning Susie Smith opened Susie's Commerical Clearning on April 1, 2021. In Apr, the following transactions were completed. Apr-01Invested $14,000 cash in the business 1Purchased a used truck for $26,400, paying $6,400 cash and signing a note payable for the balance 1Collected $3,000 from XYZ for their cleaning needs for Apr, May and June. 3Purchased cleaning supplies on account for $850 5Paid $1,800 on a one-year insurance policy, effective Apr 1 12Billed customers $3,800 for cleaning services 18Paid $400 of amount owed on cleaning supplies 20Paid $1,600 for employee's salaries 21Collected $1,400 from customers billed on Apr 12 25Billed customers for $3,000 for cleaning services 30Paid gas and oil for the month on the truck $350 30Withdrew $1,600 to pay personal property taxes Additional Information: 1. Annual payments of $3,000 are required on the note. Required: 1. Journalize and post the Apr transactions. Susie's Commerical Cleaning records all prepaid expenses and unearned revenues as assets and liabilities 2. Prepare an unadjusted trial balance at April 30, 2021. 3. Journalize and post the following adjustments a. Earned and unbilled fees at Apr 30, 2021 were $1,500. b. The truck has an estimated useful life of four years and no residual value. c. The insurance policy is effective Apr 1, 2021 and expires on March 31, 2022 d. An inventory count shows $375 of cleaning supplies on hand at Apr 30, 2021. e. At Apr 30. 2021, $1,000 of the fees collected in advance have been earned. f. Accrued but unpaid employee salaries were $400. g. The note payable has a 6% annual interest rate. 4. Prepare an adjusted trial balance at Apr 30, 2021. 5. Prepare in good form an Income Statement, Statement of Owner’s Equity and a Classified Balance Sheet for the month ended Apr 30, 2021. 6. Journalize and post the closing entries. 7. Prepare a post closing trial balance at Apr 30, 2021. 8. Susie's Commerial Clearning has chosen to prepare reversing entries. Prepare necessary reversing entries in May 2021. They do not need to be posted. &G Check Figures and Hints and Tip Check Figures: The balance in the cash ledger account is $6,250 on the debit side The closing balance in Susie Smith, Capital at April 30, 2021 is $18,075 on the credit side. General Tips You must number each page of the general journal Posting references are required All entries should be posted into one general ledger (not 3) In the general ledger, the particulars column can be left blank You should not start each ledger account with a line that says opening balance of zero, as the company did not exist last month. You are not required to prepare a worksheet for this assignment Assignment Tips for Each Part Part 1Your entries should be prepared in general journals. (As learned in chapter 2 – see page 2-20 for an excellent example – explanations are not required) Posting of entries is demonstrated in the Lesson Notes. It is a limited explanation. The Learning Activities will help here, Please note: You must post entries into a general ledger and not into T-Accounts as used in the textbook. (Using the Templates is a really good idea). Part 2An example of an unadjusted trial balance can be found on page 2-22. Illustration 2.38 or before you go on – do it question Part 3Your adjusting entries should be prepared in a general journal separate from Part 1. Label the general journal Adjusting Entries. Post your adjusting entries into the general ledger started in Part 1. Part 4Page 3.23 can be used as an example for this part illustration 3.28 Part 5Use good form to prepare your financial statements. Remember the feedback from assignment #2 so the same mistakes are not made. Part 6Prepare your closing entries in a general journal separate from Part 1 and Part 2. Label the general journal Closing Entries. Post your closing entries into the general ledger from part 3. Part 7Page 4-10 has an example of a post closing trial balance. Illustration 4.11 Part 8Prepare your reversing entries in a general journal separate from Parts 1, 2 and 6. Label the general journal Reversing Entries. You do not need to post these entries. Presenting Credit Balances in the General Ledger The next worksheet entitled G/L credit balances illustrated explain how to differentiate between debit and credit balances in the general ledger.The presentation of a debit balance should be different than a credit balance. Please be sure to present the debit and credit balances as explained in these files for this assignment. The text book does not explain or emphasize this point. GL Credit balances illustrated GENERAL LEDGER ACCOUNTS ACCOUNT: CASHACCOUNT NO:1010 DateParticularsP. R.DebitCreditBalance 30-Jun2021Opening Balance11740.0011740.00 1-JulGJ12200.009540.00 1-JulGJ13000.006540.00Each time the balance column is in a credit position the column 2-JulGJ1900.007440.00should be formatted (presented differently) 6-JulGJ18687.00(1247.00) 6-JulGJ1175.00(1422.00)In this example I have put brackets and red font on the credit balances 7-JulGJ 11200.00(2622.00) 7-JulGJ 16550.003928.00 10-JulGJ 26000.00(2072.00) 12-JulGJ 2800.00(2872.00) 14-JulGJ 21100.00(3972.00) 14-JulGJ 27550.003578.00 16-JulGJ 21200.002378.00 16-JulGJ 21683.00695.00 18-JulGJ 212500.0013195.00 21-JulGJ 21800.0011395.00 21-JulGJ 28450.0019845.00 22-JulGJ 2750.0019095.00 22-JulGJ 31370.0017725.00 28-JulGJ 31025.0016700.00 28-JulGJ 36220.0022920.00 29-JulGJ 3300.0022620.00 31-JulGJ 33855.0026475.00 A Sample Ledger GENERAL LEDGER ACCOUNTS ACCOUNT: CashACCOUNT NO:1450 DateParticularsP. R.DebitCreditBalance 1-Janopen balanceCarry Fwd1000 ACCOUNT: Accounts receivableACCOUNT NO:1452 DateParticularsP. R.DebitCreditBalance 1-Janopen balanceCarry Fwd500 ACCOUNT: Accounts payableACCOUNT NO:1470 DateParticularsP. R.DebitCreditBalance 1-Janopen balanceCarry Fwd250or 250 CR or (250) or -250 Jan-02entry199449or 449 CR or (449) or -490 Jan-03entry200649or 649 CR or (649) or -649 ACCOUNT: Owners capitalACCOUNT NO:1472 DateParticularsP. R.DebitCreditBalance 1-Janopen balanceCarry Fwd1250or 1250 CR or (1250) or -1250 Chart of Accounts Assets 1010Cash 1030Accounts Receivable 1200Cleaning Supplies 1300Prepaid Insurance 1450Vehicle 1452Accumulated Depreciation - Vehicle Liabilities 2000Accounts payable 2010Salaries payable 2020Interest Payable 2100Unearned Revenue 2300Notes Payable Capital 3010Susie Smith, Capital 3020Susie Smith, Withdrawals Revenue 4050Revenue Expenses 5100Vehicle Expense 5110Salaries Expense 5120Insurance Expense 5260Cleaning Supplies Expense 5290Interest Expense 5300Depreciation Expense Other 9000Income Summary General Journal Your Name April Embleton GENERAL JOURNAL Page # MONTHApril COMPANY NAME:Susie's Commercial Cleaning Date MthDay Account Titles and ExplanationP. R.DebitCredit April1Cash14,000.00 Owner's Equity Capital14,000.00 April1Vehicle26,400.00 Cash6,400.00 Notes Payable20,000.00 April1Cash3,000.00 Unearned Revenue3,000.00 April3Cleaning supplies850.00 Accounts Payable850.00 April 5Pre paid Insurance1,800.00 Cash1,800.00 April12Accounts Receivable3,800.00 Revenue3,800.00 April18Account Payable400.00 Cash400.00 April20Salaries Expense1,600.00 Cash1,600.00 April21Cash 1,400.00 Accounts Receivable1,400.00 April25Accounts Receivable3,000.00 Revenue 3,000.00 April30Vehiucle Expenses350.00 Cash350.00 April30Susie Smith Withdrawls1,600.00 Cash1,600.00 Your Name GENERAL JOURNAL Page # MONTHCOMPANY NAME: Date Account Titles and ExplanationP. R.DebitCredit Your Name GENERAL JOURNAL ADJUSTING ENTRIESPage # MONTHCOMPANY NAME: Date Account Titles and ExplanationP. R.DebitCredit Your Name GENERAL JOURNAL CLOSING ENTRIESPage # MONTHCOMPANY NAME: Date Account Titles and ExplanationP. R.DebitCredit Your Name GENERAL JOURNAL REVERSING ENTRIESPage # MONTHCOMPANY NAME: Date Account Titles and ExplanationP. R.DebitCredit General Ledger Company Name:Susie's Commercial CleaningYour NameApril Embleton GENERAL LEDGER ACCOUNT: CASHACCOUNT NO:1010 DateParticularsP. R.DebitCreditBalance April114,000.0014,000.00 April 16,400.007,600.00 April13,000.0010,600.00 April51,800.008,800.00 April18400.008,400.00 April201,600.006,800.00 April 211,400.008,200.00 April30350.007,850.00 April301,600.006,250.00 ACCOUNT: Accounts ReceivableACCOUNT NO:1030 DateParticularsP. R.DebitCreditBalance April123,8003,800.00 April211,400.002,400.00 3,000.005,400.00 ACCOUNT: Cleaning SuppliesACCOUNT NO:1200 DateParticularsP. R.DebitCreditBalance April3850.00850.00 ACCOUNT: Prepaid InsuranceACCOUNT NO:1300 DateParticularsP. R.DebitCreditBalance April51,800.001,800.00 ACCOUNT: VehicleACCOUNT NO:1450 DateParticularsP. R.DebitCreditBalance April 126,400.0026,400.00 ACCOUNT: Acc Depn VehicleACCOUNT NO:1452 DateParticularsP. R.DebitCreditBalance ACCOUNT: Accounts payableACCOUNT NO:2000