Balancing the books

[Scott75]

Alright, I'm doing this homework assignment in my course.. the thing is, the books aren't balancing. I'm attaching a zip file in this post to try to show what's going on, hopefully someone will be able to point out where the problem is. I've included everything; from the original balance sheet in the book, to the instructions/transactions, to the general ledger entries, to the trial balance, income statement, and finally the balance sheet. For the trial balance I just put in the owner's equity that would balance both sides, but when I put in the same owner's equity for the balance sheet, the books weren't balanced; so clearly something is wrong, I just don't know where. There are 20 accounts, which can all be seen in the Trial Balance.

 

[Triest123]

Lakeside Bed and Breakfast
Balance Sheet
December 31, 20--

Assets :
Cash $6,805
Supplies $2,945
Land $80,000
Building $200,000
Furn & Equip $10,000
Automobile $7,200
Total Assets $306,950

A/P – Westend Motors $85
Bank Loan $20,500
Mortgage Payable $125,000
J. Stowe, Capital $161,365
Total Liabilities and Owner's Equity $306,950


Note 1 : Your journal entries (i.e. done on the file KQ15ab) are correct.

2 : Cash balance is $6,805 (you omit this transaction in the Cash ledger
- "15 Paid $45 for a small advertisement in the local newspaper. Cheque 289"

3 : The Accounts Payable for United Supplies is $0 [you omit this transaction
in the A/P ledger - "5 Purchased cleaning supplies from United Supplies,
$120, but did not pay for them. Invoice 39586")

4 : Closing capital = $159,700 (opening) + $2,190 (profit) - $525 (Drawings)
= $161,365

 

[Scott75]

Lakeside Bed and Breakfast
Balance Sheet
December 31, 20--

Assets :
Cash $6,805
Supplies $2,945
Land $80,000
Building $200,000
Furn & Equip $10,000
Automobile $7,200
Total Assets $306,950

A/P – Westend Motors $85
Bank Loan $20,500
Mortgage Payable $125,000
J. Stowe, Capital $161,365
Total Liabilities and Owner's Equity $306,950


Note 1 : Your journal entries (i.e. done on the file KQ15ab) are correct.

2 : Cash balance is $6,805 (you omit this transaction in the Cash ledger
- "15 Paid $45 for a small advertisement in the local newspaper. Cheque 289"

3 : The Accounts Payable for United Supplies is $0 [you omit this transaction
in the A/P ledger - "5 Purchased cleaning supplies from United Supplies,
$120, but did not pay for them. Invoice 39586")

4 : Closing capital = $159,700 (opening) + $2,190 (profit) - $525 (Drawings)
= $161,365

Thanks so much . I definitely did think it was strange that Accounts Payable - United Supplies would have a positive balance; I really should have checked that. As to the $45 advertising expense, that would have been harder to trace; but I'm now thinking that I really should have gone through each of the entries to make sure it was all in there. The fact that I had to stop multiple times while putting it all in probably didn't help either, laugh . Also, thank you for explaining how to figure out the closing capital the -right- way; reviewing my textbook, I see it was in there, but I guess I didn't really pay as much attention on that part as I should have .