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.
Instructions
Prepare a correct trial balance.
Step by Step Answer:
Intermediate Accounting principles and analysis
ISBN: 978-0471737933
2nd Edition
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso