0.

Ending balances from 2019 matched beginning balances from 2020

1. 385 transactions were cleared up with client.
385 transactions 2020

Date Payee Amount

Dec 15,2020 CHECK 1113 4545,07
Dec 15,2020 CHECK 1114 5394,72
Dec 17, 2020 IMCD 6042,88

Per by client, both checks were under his name, check 1113 was a reimbursement of
health insurance that he paid during the year 2020, was a bonus and IMCD, was an
ingredient purchase for a new product. The ingredient could not be delivered by supplier,
so they sent a check to return the money on January 11, 2021.
Check 1113 was coded to 579, check 1114 was coded to 251 an IMCD was coded to 650

2.  Sales and sales tax matched sales tax report.

Inventory 2020 was $65.833,97. Per by client, inventory ending balance 2020 is $107.168.
We entered an adjustment to debit Inventory for $41.334,03. (Journal 1)
Inventory ending balance December 2020 post adjustment  $107,168.
COGS increased 2% in comparison with 2019. $ 299,254. from freight (519) were
reclassified to freight costs (651). Freight cost adjustment is pending to add as manual
journal.
3.  Cash in transit December 2020 EB $21,563.40. We entered the following adjustment:
Debit $21,563.40 to Cash in transit and credit the same amount to Wholesale. (Journal 2)
Cash in transit post adjustment --> $0
4. Leasehold improvements December 2020 EB  $30,490.47

Date Payee Amount

Sep 16,
2020 CHECK 1103 $ 3.725,00
Sep 21,
2020 CHECK 1104 $ 3.360,00
TOTAL   $ 7.085,00
WE need to add to FS ACS

5.       No other assets. No amortization expenses.

6.        Current liabilities December 2020 ending balance are as follows:

# Account PDF XERO

Chase 0013 $ 1.858,91 $ 1.858,91
Amex $ 2.614,62 $ 2.614,62
Capital one
4136 $ 12.907,56 $ 12.907,56
Chase 3920 $ 9,22 $ 9,22
Pnc 3411 $ 18,17 $ 18,17
Payroll clearing December EB $8,295.77.
Client process payroll via zelle (sometimes). Few extra payments were coded to payroll
clearing creating a positive balance of $8,296, which were reclassified to outside labor.
(Journal 3)
Payroll clearing December EB post adjustment $0
Wages amount for 2020 are the same in Xero and W2.

W2
Wages $ 156.498,24
Xero
502+50
3 $ 156.498,24

Payroll taxes payable December 2020 EB $1,328.43.

Sales tax liabilities December 2020 EB $19,76.

7. Interest expenses for 2020 are as follows:

All of them matched Whit CC statements

# Account PDF XERO

Chase
0013 $1.782.56 $1.782.56
Amex 146.58 146.58
Pnc 3411 $12.83 $12.83
Capital one $0.90 $0.90
Due to share holder 202O EB $132.396,35.
Loan payable Amex 2020 EB $20.000. This loan was acquired on Dec 31, 2020

8. Officer’s salary for 2020 $ 77.369.66

9. December cash balances from 2020 matched bank statement

# Account PDF XERO

Chase
5902 $ 459.61 $ 459.61
Citi 8709 $33,471.57 $33,471.57
PNC 1636 $ 28,766.81 $ 28,766.81
Paypal $170.23 $170.23