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Question 4 The trial balance of Tamarisk, Inc. shown below does not balance. Tamarisk, Inc. Trial balance May 31, 2020 Debit Credit Cash $5,190 Accounts
Question 4 The trial balance of Tamarisk, Inc. shown below does not balance. Tamarisk, Inc. Trial balance May 31, 2020 Debit Credit Cash $5,190 Accounts Receivable $2,730 Prepaid Insurance 800 Equipment 13,340 Accounts Payable 5,840 Unearned Service Revenue 660 13,040 Common Stock Service Revenue 8,670 Salaries and Wages Expense 4,300 Advertising Expense 1,000 Utilities Expense 800 $33,760 $22,610 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 Utilities Expense were each understated $100. 2. Transposition errors were made in Accounts Receivable and Service Revenue. Based on postings made, the correct balances were $2,370 and $8,760, respectively. 3. A debit posting to Salaries and Wages Expense of $200 was omitted 4. A $1,060 cash dividend was debited to Common Stock for $1,060 and credited to Cash for $1,060. 5. A $570 purchase of supplies on account was debited to Equipment for $570 and credited to Cash for $570. 6. A cash payment of $610 for advertising was debited to Advertising Expense for $61 and credited to Cash for $61 7. A collection from a customer for $470 was debited to Cash for $470 and credited to Accounts Payable for $470. Prepare a correct trial balance. (Hint: It helps to prepare the correct journal entry for the transaction described and compare it to the mistake made.) Tamarisk, Inc. Trial balance Debit Credit Totals
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