This trial balance of Schumaker Company 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 Property Tax 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 $7,960, respectively.
3. A debit posting to Salaries Expense of $400 was omitted.
4. An $800 cash dividend was debited to Common Stock for $800 and credited to Cash for $800.
5. A $350 purchase of supplies on account was debited to Equipment for $350 and credited to Cash for $350.
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 $240 was debited to Cash for $240 and credited to Accounts Payable for $240.

Instructions
Prepare the correct trial balance, assuming all accounts have normalbalances.

Transcribed Image Text:

SCHUMAKER COMPANY Trial Balance May 31, 2010 Debit 6,340 Credit Cash Accounts Receivable Prepaid Insurance Equipment Accounts Payable Property Taxes Payable Common Stock Retained Earnings Service Revenue Salaries Expense Advertising Expense Property Tax Expense 2,750 8,000 4,100 750 5,700 6,000 7,690 4,200 1,100 $28,580 $19,650