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The following trial balance of Coronado Company does not balance. Your review of the ledger reveals the following. (a) Each account had a normal balance.
The following trial balance of Coronado 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 $97. (c) A transposition error was made in Accounts Receivable and Service Revenue; the correct balances for Accounts Receivable and Service Revenue are $2,850 and $6,690, respectively. (d) A debit posting to Advertising Expense of $322 was omitted. (e) A $1,440 cash drawing by the owner was debited to Owner's Capital and credited to Cash. Coronado Company Trial Balance April 30, 2020 Debit Credit Cash $5,203 Accounts Receivable 2,580 Prepaid Insurance 705 Equipment $8,290 Accounts Payable 4,210 Property Tax Payable 538 Owner's Capital 12,125 Service Revenue 6,960 Salaries and Wages Expense 4,038 Advertising Expense 1,024 Property Tax Expense 840 $21,048 $25,465 Prepare a correct trial balance. Cash Accounts Receivable Prepaid Insurance Equipment Accounts Payable Property Tax Payable Owner's Capital Service Revenue CORONADO COMPANY Trial Balance April 30, 2020 Debit 5203 2850 802 8290 Salaries and Wages Expense 4038 Advertising Expense Property Tax Expense Owner's Drawings Totals 702 302 1440 Credit 12275 205 13565 6690 23627 32735
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