Cash 5,850
Accounts Receivable 2,750
Prepaid Insurance 700
Equipment 8,000
Accounts Payable 4,500
Property Taxes Payable 560
M Sterling, Capital 11,700
Service Revenue 6,690
Salaries Expense 4,200
Advertising Expense 1,100
Property Tax Expense 800

1. The totals of the debit sides of Prepaid Insurance, Accounts Payable, and Property Tax Expense were each
Understated $100
2. Transposition errors were made in Accounts Receivable and Service Revenue. Based on posting made, the
Correct balances were $2,570 and $6,960 respectively.
3. A debit posting to Salaries Expense of $200 was omitted.
4. A $1,000 cash drawing by the owner was debited to M. Sterling, Capital for $1,000 and
Credited to Cash for $1,000
5. A $520 purchase of supplies on account was debited to Equipment for $520 and
Credited to Cash for $520
6. A cash payment of $450 for advertising was debited to Advertising Expense for $45 and
And credited to Cash for $45
7. A collection from a customer for $210 was debited to Cash for $210 and credited to
Accounts Payable for $210

The first thing I did was add $100 to Dr. of accounts payable, prepaid insurance, and property tax expense. Was that correct?

Then I changed the amounts to 2570 and 6960 of account receivable and service revenue respectfully. I moved service revenue to the credit side, was that correct?

Next I debited owners drawings 1000 and credited M. Sterling, Capital 1000.

I debited supplies 520 and credited accounts payable 520. I guess I subtract 520 from equipment on the debit side and subtract 520 from cash on the credit side.

Next, I debited advertising expense for 405 and credited cash for 405.

Finally, I debited cash for 210 and credited accounts receivable for 210.

I need help determining what side everything goes on as well, please.

First thing to do is set up a trial balance on Excel or use a 2 column paper.

Assets & Expenses have a normal Debit Balance. Liabilities and capital accounts have a normal Credit Balance.

1. Subtract 100 from A/P, Add 100 to both Prepaid Insurance and the Expense account.
2. Change the amounts in the accounts.
3. Add 200 to the Expense account.
4. Add a Drawing account with 1000 Debit balance, and subtract 1000 from the Capital Account.
5. Add a supplies account with 520 Debit balance, subtract 520 from the Eqpt Balance, add 520 to the Cash balance and add 520 to A/P account.
6. Subtract 405 from the Cash Balance, add 405 to the Expense Account.
7. subtract 210 from A/R and subtract 210 from A/P.

Cash $5,965 amount
Accounts Receivable 2,360 amount
Prepaid Insurance 800 amount
Equipment 7,480 amount
Accounts Payable amount $4,710
Property Taxes Payable amount $560
M Sterling, Capital amount 10,700
Service Revenue amount 6,960
Salaries Expense 4,400 amount
Advertising Expense 1,505 amount
Property Tax Expense 900 amount
M Sterling, Drawing 1,000 amount
Supplies 520 amount

I got a debit balance of $2000.

Your Debits and Credits should Equal 24,410

See attached Excel file

Do you guys have the answer for this? The correct balance should be 24,930. I got the debit side to balance but not the credit side. Can you walk me through this? I included my numbers belows
Trial Balance
Account Name
Cash 6,565 Dr
Accounts Receivable 2,570 Dr
Prepaid Insurance 800 Dr
Supplies 520 Dr
Equipment 7,480 Dr
Accounts Payable 4,610 Cr
Property Taxes Payable 560 Cr
M Sterling, Capital 12,700 Cr
M Sterling, Drawing 1,000 Dr
Service Revenue 6,960 Cr
Salaries Expense 4,400 Dr
Advertising Expense 695 Dr
Property Tax Expense 900 Dr
Total 24,930 (Debit) 24,830 (Credit)

This is a duplicate post and I posted a corrected explanation and a corrected Excel file in response to your other post in the Business & Careers Accounting thread.

I guess when I worked on it before I did not have my coffee yet, or my Wheaties (lol).