This trial balance of Eau Claire Company does not balance.

Your review of the ledger reveals that each account has a normal balance. You also discover the following errors:
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 $700 cash dividend was debited to Common Stock for $700 and credited to Cash for $700.
5. A $420 purchase of supplies on account was debited to Equipment for $420 and credited to Cash for $420.
6. A cash payment of $250 for advertising was debited to Advertising Expense for $25 and credited to Cash for $25.
7. A collection from a customer for $210 was debited to Cash for $210 and credited to Accounts Payable for $210.
Instructions Prepare the correct trial balance. [Note: The chart of accounts also includes the following: Dividends, Supplies, and Supplies Expense. ]

Transcribed Image Text:

EAU CLAIRE COMPANY Trial Balance May 31, 2001 Cash Debit $ 5,850 Credit Accounts Receivable $ 2,750 Prepaid Insurance 700 Equipment 8,000 Accounts Payable 4,500 Property Taxes Payable 560 Common Stock 5,700 Retained Earnings 6,000 Service Revenue 6,690 Salaries Expense 4,200 Advertising Expense 1,100 Property Tax Expense 800 $26,800 $20,050