2.(Corrected Trial Balance) The trial balance of Wanda Landowska Company (shown on the next page) does not balance. The review of the ledger reveals the following: (a) Each account had a normal balance. (b) The debit footings in Prepaid Insurance, Accounts Payable, and Property Tax Expense were each understated $100. (c) A transposition error was made in Accounts Receivable and Service Revenue; the correct balances for Accounts Receivable and Service Revenue are $2,750 and $6,690, respectively. (d) A debit posting to Advertising Expense of $300 was omitted. (e) A $1,500 cash drawing by the owner was debited to Wanda Landowska, Capital, and credited to Cash.
Debit$
Credit$
Cash
$ 4,800
Accounts Receivable
2,570
Prepaid Insurance
700
Equipment
$ 8,000
Accounts Payable
4,500
Property Tax Payable
560
Wanda Landowska, Capital
11,200
Service Revenue
6,960
Salaries Expenses
4,200
Advertising Expense
1,100
Property Tax Expense
800
$20,890
$24,500
Instructions
Prepare a correct trial balance