ED 9 '0' (5 FAAWeekaTutorialQuestions_updated(3) Fi EA 'Ti'l' 'F EIFH W41 [$93 I H. ii'l' * 0d Ekm ASCXDI. it? 9x 4\" e CD'W' 5v xvl Pi it twig . we E lam at: as a me as: :A 'F" ' . in ass! are J:" rA that name we misfit 2;: E 93+ m: i ' m [figs-Kama ' ' 2a P5323 This trial balance of Theatre Adelaide Ltd does not balance. Account name Debit Credit Cash 3 5850 Accounts Receivable $ 2750 Prepaid Insurance 700 Equipment 8000 4 500 Accounm Payable Rates and Taxes Payable 550 Share Capital 5 700 Retained Earnings 6 000 Service Revenue 6690 Salaries Expense 4 200 Advertising Expense 1 100 Rates and Taxes Expense 800 526800 $20 0 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 Rates and Taxes Expense were each understated $100. 2. Transposition errors were made in Accounts Receivable and Service Revenue. Based on postings made, the correct balances were $2570 and $6960. respectively. 3. A debit posting to Salaries Expense of $200 was omitted. 4. A $700 cash dividend was debited to Share Capital for $700 and credited to Cash for $700. 5. A $420 purchase of supplies on account was debited to Equipment for $420 and credited to Cash for $420. 6. A cash payment of $250 for advertising was debited to Advertising Expense for $25 and credited to Cash for $25. 7. A collection from a customer for $210 was debited to Cash for $210 and credited to Accounts Payable for $210. Required (3) Prepare the correct trial balance. (Note.- The chart of accounts also includes die following: Dividends, Supplies, and Supplies Expense.) (1)) Explain what adjustments were made and why they were necessary. mam