Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial and Managerial Accounting

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

12th edition

978-1133952428, 1285078578, 1133952429, 978-1285078571

Students also viewed these Accounting questions

Question

explain five important changes in the world of work;

Answered: 1 week ago