The trial balance of Wanda Landowska Company (shown below) does not balance. Your review of the ledger

Question:

The trial balance of Wanda Landowska Company (shown below) 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, 2008 Debit Credit Cash $ 4,800 Accounts Receivable 2,570 Prepaid Insurance 700 $ 8,000 Equipment Accounts Payable 4,500 560 Property Tax Payable 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


Instructions

Prepare a correct trial balance.

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Related Book For  book-img-for-question

Intermediate Accounting principles and analysis

ISBN: 978-0471737933

2nd Edition

Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso

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