Correcting A Trial Balance!
Each account has a normal balance.
Cash - Dr: $5,850
Accounts Receivable - Cr: 2,750
Prepaid Insurance - Dr: 700
Equipment - Dr: 8,000
Accounts Payable - Cr: 4,500
Property Taxes Payable - Dr: 560
M. Sterling, Capital - Dr: 11,700
Service Revenue - Dr: 6,690
Salaries Expense - Dr: 4,200
Advertising Expense - Cr: 1,100
Property Tax Expense - Dr: 800
This is what I am supposed to fix:
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 postings 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 credited to Cash for $45.
7) A collection from a customer for $210 was debited to Cash and credited to Accounts Payable for $210.
I have been working at this for two days now, and I do not understand it at all! Could somebody please help me?
