E3-2 (Corrected Trial Balance) The trial balance of Wanda Landowska Company (shown on the next page) 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 Owners Capital and credited to Cash.

WANDA LANDOWSKA COMPANY TRIAL BALANCE APRIL 30, 2014 Debit Credit Cash $ 4,800 (D)

Accounts Receivable 2,570(D) Prepaid Insurance 700(D) Equipment $ 8,000(C) Accounts Payable 4,500 (C) Property Taxes Payable 560(D)

Owners Capital 11,200(C) Service Revenue 6,960(D) Salaries and Wages Expense 4,200(D) Advertising Expense 1,100(D) Property Tax Expense 800(D) $20,890 $24,500