The following trial balance of Sheridan Company does not balance. Sheridan Company
Trial balance
May 31, 2022
Debit Credit
Cash $5,270
Accounts Receivable $2,750
Prepaid Insurance 870
Equipment 13,420
Accounts Payable 5,920
Unearned Service Revenue 730
Common Stock 13,120
Service Revenue 8,690
Salaries and Wages Expense 4,370
Advertising Expense 930
Utilities Expense 800 $34,150 $22,720
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 Utilities 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 $8,960, respectively.
3. A debit posting to Salaries and Wages Expense of $200 was omitted.
4. A $1,870 cash dividend was debited to Common Stock for $1,870 and credited to Cash for $1,870.
5. A $590 purchase of supplies on account was debited to Equipment for $590 and credited to Cash for $590.
6. A cash payment of $470 for advertising was debited to Advertising Expense for $47 and credited to Cash for $47.
7. A collection from a customer for $590 was debited to Cash for $590 and credited to Accounts Payable for $590.
Prepare a correct trial balance. (Hint: It helps to prepare the correct journal entry for the transaction described and compare it to the mistake made.)