[nikkiti]

I'm trying to correct this trial balance & I'm obviously missing something.


Trial Balance
Cash 2100 (Dr)
A/R 2570 (Dr)
Prepaid Ins 700 (Dr)
Equipment 8000 (Cr)
A/P 4500 (Cr)
Property Tax Payable 560 (Dr)
Capital 11200 (Cr)
Service Revenue 6960 (Dr)
Sales Expense 4200 (Dr)
Advertising Exp 1100 (Dr)
Prpoerty Tax Exp 800 (Cr)

(a) Each acct has a normal balance (b) The debit footing in Prepaid Ins, A/P and Property Tax Exp were each understated by $1000. (c) A transposition error in A/R & Service Rev; the correct balances are $2750 & $6690 respectively. (d) A debit posting to Advertising Exp of $300 was omitted. (e) A $3200 cash drawing by the owner was debited to capital and credited to cash.

All the info given was provided, nothing has been corrected. I still can't get the number to balance out. Any help would be appreciated.

[ArcSine]

It balances out fine if you take the corrections systematically...

First, fix those accounts which have 'abnormal' balances--that is, turn the debits into credits, or vice-versa, where needed. (Hint: There is one asset and two income statement accounts that need this 'repair' work.)

Next, add $1,000 debit amount to each of the three accounts named in (b).

Finally handle (c) and (d), and you're done. (Here's a freebie: Item (e) requires no action--it was recorded correctly as-is.)

[nikkiti]

Thank you very much... What was throwing my balance off was item (e). I got it to balance. Thanks again!

[ArcSine]

I'm very glad it helped... take care ;)