Your review of the ledger reveals that each account has a normal balance. you also discover the following errors.
the totals of the debit sides of prepaid insurance, accounts payable, and property tax expense were each understated $100.
transposition errors were made in accounts receivable and service revenue. based on postings made, the correct balances were $2,570 and $6,960, respectively.
a debit posting to salaries expense of $200 was omitted.
a $1,000 cash drawing by the owner was debited to m. sterling, capital for $1,000 and credited to cash for $1,000.
a $520 purchase of supplies on account was debited to equipment for $520 and credited to cash for $520.
a cash payment of $450 for advertising was debited to advertising expense for $45 and credited to cash for $45.
a collection from a customer for $210 was debited to cash for $210 and credited to accounts payable for $210.
instructions
prepare a correct trial balance. note that the chart of accounts includes the following: m. sterling, drawing, and supplies. (hint: it to prepare the correct journal entry for the transaction described and compare it to the mistake made.) (if answer is zero, enter 0. do not leave any fields blank.)