The trial balance of the Saginaw Corporation shown below does not balance. Your review of the ledger

Question:

The trial balance of the Saginaw Corporation shown below does not balance.

image text in transcribed

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 Property Tax Expense were each understated $\$ 100$.
2. Transposition errors were made in Accounts Receivable and Fees Earned. Based on postings made, the correct balances were $\$ 2,570$ and $\$ 6,960$, respectively.
3. A debit posting to Salaries Expense of $\$ 200$ was omitted.
4. A $\$ 700$ cash dividend by the corporation was debited to Common Stock 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 $\$ 210$.
\section*{Instructions}
Prepare a correct trial balance. (Note: The chart of accounts includes the following: Dividends; Supplies; and Supplies Expense.