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randirose
Sep 19, 2012, 10:54 AM
Below is the trial balance to the question I am working on.

Cash=debit balance of $2,100
Accounts receivable=debit balance of $2,570
Prepaid Insurance=debit balance of $700
Equipment=credit balance of $8,000
Accounts Payable=credit balance of $4,500
property taxes payable=debit balance of $560
Owner's Capital=credit balance of $11,200
Service Revenue=debit balance of $6,960
Salaries and Wages Expenses=debit balance of $4,200
Advertising Expense=debit balance of $1,100
property Tax expense=credit balance of $800

a.) each account had a normal balance.
b.) the debit footings in Prepaid Insurance, Accounts Payable, and Property Tax Expense were each understated $1,000.
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 Adverting Expense of $300 was omitted.
e.) a $3,200 cash drawing by the owner was debited to Owner's Capital and credited to Cash

I have to prepare a corrected trial balance.

paraclete
Sep 19, 2012, 03:55 PM
Then prepare a worksheet, make the adjustments and extract a new trail balance