The trial balance of wanda landowska company (shown on the next page)

E3-2 (Corrected Trial Balance)The trial balance of Wanda Landowska Company (shown on the next page) does not balance. Your 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.

 

WANDA LANDOWSKA COMPANY

TRIAL BALANCE

APRIL 30, 2007

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 Expense 4,200

Advertising Expense 1,100

Property Tax Expense 800

 

$20,890 $24,500