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Dr Cr
Cash 4800 (Dr)
Acc Receivable 2570 (Dr)
Prepaid Insurance 700 (Dr)
Equipment 8000 (Cr)
Acc Payable 4500 (Cr)
Property tax payable 560 (Dr)
Owner’s capital 11200 (Cr)
Service revenue 6960 (Dr)
Wages expenses 4200 (Dr)
Advertise expenses 1100 (Dr)
Property tax expence 800 (Cr)
_____ _____
20890 (Dr) 24500 (Cr)
a) each account had a normal balance, b) the debit footings in Prepaid Insurance, Acc Payable, and Property tax expenses were each understated $100 each, c) A transposition error was made in Acc receivable and service revenue: the correct balances for Acc receivable and service revenue are 2750$ and 6690$ respectively, d) A debit posting to Advertise expense of 300$ was omitted, e) a 1500$ cash drawing by the owner was debited to Owner’s capital and credited to Cash.These is the all available information. But I couldn’t balance them after making proper adjustments.
I need some help. Show please how to balance the given T-balance after correcting and adjusting.
Thanks in advanceDr Cr
Cash 4800
Acc Receivable 2570
Prepaid Insurance 700
Equipment 8000
Acc Payable 4500
Property tax payable 560
Owner’s capital 11200
Service revenue 6960
Wages expenses 4200
Advertise expenses 1100
Property tax expence 800
_____ _____
20890 24500first you have to separate which are Dr and Cr
Dr side
cash, receivable, prepaid insurance, equipment, wages, advertisement expense and property tax expense
Cr side
account payable, tax payable, capital and revenue
Total Dr : 22170
Total Cr: 23220
and make all the adjustment, then your suspense account will nil.
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