The following trial balance of Geronimo AG does not balance. Your review of the ledger reveals the
Question:
The following trial balance of Geronimo AG 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 €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 Advertising Expense of €300 was omitted.
(e) A €3,200 cash drawing by the owner was debited to Geronimo, Capital, and credited to Cash.
Instructions
Prepare a correct trial balance.
Step by Step Answer:
Intermediate Accounting IFRS
ISBN: 9781119607519
4th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield