This trial balance of Lindbergh Company does not balance.

LINDBERGH COMPANY Trial Balance May 31, 2014 Debit Credit Cash $ 5,340 Accounts Receivable $ 2,750 Prepaid Insurance 700 Equipment 9,000 Accounts Payable 4,100 Income Taxes Payable 850 Common Stock 5,700 Retained Earnings 6,000 Service Revenue 7,690 Salaries and Wages Expense 4,200 Advertising Expense 1,100 Income Tax Expense 900

$28,680 $19,650 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 Income 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 $7,960, respectively. 3. A debit posting to Salaries and Wages Expense of $500 was omitted. 4. A $600 cash dividend was debited to Common Stock for $600 and credited to Cash for

$600. 5. A $350 purchase of supplies on account was debited to Equipment for $350 and credited to Cash for $350. 6. A cash payment of $490 for advertising was debited to Advertising Expense for $49 and credited to Cash for $49. 7. A collection from a customer for $240 was debited to Cash for $240 and credited to Accounts Payable for $240.

Instructions Prepare the correct trial balance, assuming all accounts have normal balances. (Note: The chart of accounts also includes the following: Dividends and Supplies.)AppendixLO1