Any accountants?

[schmedes2]

I'm asking everyone I can at this point to help me out with this danged problem


1.) fees received in advance from clients and recorded as revenue for which service has not been provided 15,000
2.) Services performed for clients that were not recorded by December 31, 2007 total 20,000
3.) Allowance for doubtful accounts should be increased by 1% of total revenues (after considering 1 and 2)
4.) Insurance expired during the year totals 1,300
5.) Furniture and equipment is being depreciated at 10% of cost a year
6.) On December 1, a 90 day not was signed at 6% for 300,000 shown as note payable. Accrue interest for this note
7.) Rent for the building is 4,000 a month. Rent for 2007 has been paid as well as January 2008
8.) Office salaries earned but unpaid as of 31 December are 3,000
9.) Assume 30% income tax rate and that amounts for revenues and expenses are taxable

Unadjusted trial balance:
DR:
Accounts receivable 340,000
cash: 213,000
furniture and equipment : 137,000
misc. office expense 1,300
office salaries expense 166,000
unexpired insurance: 3,700
utilities expense 6,000
supplies inventory 11,000
rent expense 52,000
CR:
accumulated depreciation 22,000
allowance for doubtful account 2,700
capital stock 100,000
notes payable 300,000
retained earnings 5,300
revenue from consulting fees 500,000

So I have as my adjustments
Revenue 15000
unearned revenue 15000

Accounts receivable 20000
revenue 20000

allowance for doubtful account expense 5050 = (500,000 + 20,000 - 15,000) x 10%
total allowance for doubtful account 5050

insurance expense 1300
unexpired insurance 1300

depreciation expense 13700
accumulated depreciation 13700

interest expense 6000
note payable 6000

rent expense 48,000
prepaid rent 48,000

office salaries expense 3000
office salaries payable 3000

income tax is the kicker. I did 505000 - (169,000 salaries expense + 1300 misc. office expense + 4000 rent expense + 1300 insurance expense + 6000 interest expense + 5050 bad debt expense + 13700 depreciation expense + 6000 utilities expense) = 298650 x .3 = 89595

Now when I add my DR and CR up, they don't match. I get like 1.05 million to 1.12 million

For DR i end up with
accounts receivable 360,000
cash 213,000
Furniture and equipment 137,000
misc. office expense 1300
salaries expense 169,000
rent expense 4000
prepaid rent 48,000
supplies 11,000
unexpired insurance 2400
utilities expense 6000
insurance expense 1300
doubtful account expense 5050
depreciation expense 13,700
income tax 89,595

for cr

accumulated depreciation 35,700
allowance for doubtful accounts 7750
capital stock 100,000
notes payable 306,000
retained earnings 214,355
revenue 505,000
salaries payable 3000


which gives me 1067345 dr and 1171805 cr...obviously I'm a little off somewhere

[EvoBilly]

lol wah im glad im not a accountent ive read it 3 times and im still lost

[schmedes2]

lol yea I'm missing something here I just can't find out what

[cashpro2011]

In my former life I was a CPA. No really...a real Certified Public Accountant. I'm now a internet marketer. I GLANCED at your account and got a headache.

AR doesnt look right.

Allowance for da doesnt look right. That should offset your ar account
depreciation should be higher because you started with 22k and increased it by 13.7k

This is just glancing at your account info.

After you get this settled, you may want to become an affiliate for Quickbooks...you would make some serious moolah!!!!

Just my 2 cents...

CashPro

[Avidpoet]

Now I see why the Partners in the Firm I work for charge in upwards of $450 an hour in fees lol.

[graceharman]

You should seriously visit an accountant. They only charge about $800/year to do your tax returns. If you work from home or are a small business, you'll find they save you at least that in tax. I've found my accountant well worth the expense.

[JasonDodd]

With a subject line like that you might attract a few tax investigators instead :)

Accounts are something that really should be outsourced and can often pay for themselves (as Grace mentions).

If you arent already an online accounting software program like Xero is a good investment.

[schmedes2]

I figured it out, made a couple of dumb mistakes.

The adjustments for prepaid rent and rent expense were wrong and so was the interest expense and interest payable.

AND then I tried to balance the adjusted trial balance with new net income in it too! Silly me

[wollowra]

I'm now a internet marketer. I GLANCED at your account and got a headache.

CashPro

Wise decision Cash...lol
Now you can pay other CPA's to do your stuff while your sipping cocktail's with me in OZ ( Downunder )..lol

:)
Troy