2.(Corrected Trial Balance) The trial balance of Wanda Landowska Company (shown on th
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