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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 advance
Here is figures are messing after the posting. Sorry for that!I don’t understand why you do not have an answer – surely it is in the same book as you found the question??
First:
Equipment should be a debit balance not a credit
Prop tax payable should be a credit balance and not a debit.
Service revenue should be a credit balance and not a debit
Prop tax expense should be a debit balance and not a creditSecond, from the notes below:
Prepaid insurance and Prop Tax expense need increasing by 100 each
Account payable needs reducing by 100The figures for accounts receivable and revenue need replacing with the correct figures.
Advertising expense need increasing by 300
Capital needs increasing by 1500, and drawings need including with a debit balance of 1500
Then the trial balance will balance.
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