The following trial balance of Wanda Landowska Company does not balance. Your re

Question

The following trial balance of Wanda Landowska 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 $100. (c) A transposition error was made in Accounts Receivable and Service Revenue; the correct balances for Accounts Receivable and Service Revenue are $2,750 and $6,690, respectively. (d) A debit posting to Advertising Expense of $300 was omitted. (e) A $1,500 cash drawing by the owner was deb-ited to Owner’s Capital and credited to Cash.

WANDA LANDOWSKA COMPANY TRIAL BALANCE APRIL 30, 2017

Instructions Prepare a correct trial balance.

Debit credit cash 4800 Accounts Receivable 2570 Prepaid Insurance 700 Equipment 8000 Accounts Payable 4500 Property Taxes Payable 560 Owner's Capital 11200 Service Revenue 6960 Salaries and Wages Expense 4200 Advertising Expense 1100 Property Tax Expense 800 20890 24500

Explanation / Answer

TRIAL BALANCE APRIL 30, 2017 Debit Credit Calculations Cash 4800 Accounts Receivable 2750 Prepaid Insurance 800 =700+100 Equipment 8000 Accounts Payable 4400 =4500-100 Property Taxes Payable 560 Owner’s Capital 12700 =11200+1500 Owner’s Drawings 1500 Service Revenue 6690 Salaries and Wages Expens 4200 Advertising Expense 1400 =1100+300 Property Tax Expense 900 =800+100 Total 24350 24350

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