Question
The following trial balance of Crane Company does not balance. Your review of the ledger reveals the following. (a) Each account had a normal balance.
The following trial balance of Crane 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 $99. (c) A transposition error was made in Accounts Receivable and Service Revenue; the correct balances for Accounts Receivable and Service Revenue are $2,760and $6,680, respectively. (d) A debit posting to Advertising Expense of $318was omitted. (e) A $1,370cash drawing by the owner was debited to Owner's Capital and credited to Cash.
Crane Company Trial Balance April 30, 2020 | ||||||||
---|---|---|---|---|---|---|---|---|
Debit | Credit | |||||||
Cash | $4,672 | |||||||
Accounts Receivable | 2,670 | |||||||
Prepaid Insurance | 652 | |||||||
Equipment | $8,470 | |||||||
Accounts Payable | 4,360 | |||||||
Property Tax Payable | 543 | |||||||
Owner's Capital | 11,302 | |||||||
Service Revenue | 6,860 | |||||||
Salaries and Wages Expense | 3,823 | |||||||
Advertising Expense | 1,081 | |||||||
Property Tax Expense | 812 | |||||||
$20,301 | $24,944 |
Prepare a correct trial balance.
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