The trial balance of the Garland Company shown below does not balance.

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 $2,570 and $8,960, respectively.
3. A debit posting to Salaries and Wages Expense of $200 was omitted.
4. A $1,000 cash dividend was debited to Common Stock for $1,000 and credited to Cash for $1,000.
5. A $520 purchase of supplies on account was debited to Equipment for $520 and credited to Cash for $520.
6. A cash payment of $450 for advertising was debited to Advertising Expense for $45 and credited to Cash for $45.
7. A collection from a customer for $420 was debited to Cash for $420 and credited to Accounts Payable for $420.

Instructions
Prepare a correct trial balance. Note that the chart of accounts includes the following: Dividends and Supplies.

Transcribed Image Text:

Garland Company Trial Balance May 31, 2014 Debit 3,850 700 12,000 560 8,690 Credit Cash Accounts Receivable Prepaid Insurance Equipment Accounts Payable Unearned Service Revenue Common Stock Service Revenue Salaries and Wages Expense Advertising Expense Utilities Expense 2,750 4 4,500 11,700 4,200 1,100 800 $30,800 $20,050