Bluegrove Coffee Roasters, Inc. · S corporation · accrual basis
Financial Diagnostic — Year Ended December 31, 2025
Proposed correcting entries — every one balances to the cent, states its assumptions and confidence, and requires review by someone qualified before posting. KAM never posts to your accounting system. In the Controller plan and above, approved entries export as a QuickBooks-importable file.
Review-ready entries (4)
JE-1Paid twice: Peak Roast Equipment Co. — $2,340.00 on 2025-10-14
| Account | Debit | Credit |
|---|---|---|
| 6400 · Repairs & Maintenance | $2,340.00 | |
| 1000 · Cash — Operating | $2,340.00 |
Reverse duplicate payment CHK-2311 to Peak Roast Equipment Co. ($2,340.00).
Proposed effective date: 2025-10-14
Assumptions: The duplicate payment was voided or will be refunded. If it cleared and no refund is expected, pursue a vendor credit instead of posting this entry.
Alternative treatment: If a vendor refund arrives instead, record the refund receipt upon arrival and skip this entry.
JE-2Bank charged $45.00 on 2025-11-28 — never recorded in the books
| Account | Debit | Credit |
|---|---|---|
| 6460 · Bank Charges | $45.00 | |
| 1000 · Cash — Operating | $45.00 |
Record November bank charge of $45.00 per statement STMT-BANK-2025-11.
Proposed effective date: 2025-11-28
JE-3Card payment of $4,850.00 was coded to expense — expenses are double-counted
| Account | Debit | Credit |
|---|---|---|
| 2100 · Credit Card — Business Card | $4,850.00 | |
| 6900 · Miscellaneous Expense | $4,850.00 |
Reclassify the August card payment (CHK-CC-0820) from Miscellaneous Expense to the card liability.
Proposed effective date: 2025-08-20
JE-7$6,200.00 of improvement work was expensed — likely belongs on the balance sheet
| Account | Debit | Credit |
|---|---|---|
| 1510 · Leasehold Improvements | $6,200.00 | |
| 6400 · Repairs & Maintenance | $6,200.00 |
Capitalize the BuildRight Contractors improvement (CHK-BR-0512) to Leasehold Improvements.
Proposed effective date: 2025-05-12
Assumptions: The work extends or improves the asset rather than restoring it. No de minimis safe-harbor election makes expensing preferable — confirm before posting.
Alternative treatment: If the tax preparer elects to expense under an applicable safe harbor, do not post; document the election instead.
Investigation steps (3)
Where the evidence can't determine the correct account, period, or treatment, KAM gives you the investigation — not a guessed entry.
INV-4Suspense balance of $3,275.00 has no supporting detail
Pull the bank image for the 2025-09-09 item of $3,275.00, identify the payee, and confirm the business purpose. Then post: Dr [correct account] / Cr 1900 · Suspense $3,275.00.
INV-5Prepaid Expenses has a negative balance of ($600.00)
Obtain the underlying invoices and coverage dates; recompute the amortization schedule; post a correcting entry restoring Prepaid Expenses to the unexpired amount.
INV-6Customer Deposits is negative by $2,400.00 — more relieved than was recorded
Customer Deposits has been in a debit position for only one month-end. Confirm the balance is still debit after the next close before posting any correction — a provider draft landing ahead of its journal entry produces this exact pattern and resolves itself.