E3-2 (Corrected Trial Balance) The following trial balance of Wanda Landowska Company 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 Receviable and Serice Revenue are $2,750 and $6,690, respectively. (d) A debit posting to Advertising Expense of $300 was omitted. (e) A $1500 cash drawing by the owner was debited to Owners Capital and credited to Cash.

Debit Credit

Cash 4,800

Accounts Recievable 2,570

Prepaid Insurance 700

Equipment 8,000

Accounts payable 4,500

Property Taxes Payable 560

Owner Capital 11,200

Service Revenue 6,960

Salaries and Wages Expense 4,200

Advertising Expense 1,100

Property Tax Expense 800

20,890 24,500