(Corrected Trial Balance) The trial balance of Geronimo Company, shown on the ne
ID: 2349682 • Letter: #
Question
(Corrected Trial Balance) The trial balance of Geronimo Company, shown on the next page, 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 $1,000. (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 $3,200 cash drawing by the owner was debited to Owner's Capital and credited to Cash.Explanation / Answer
Account Debit Credit
Cash 5300
Accounts Receivable 2750
Equipment 8000
Prepaid insurance 1700
salary and wages 4200
Advertising exp. 2400
Drawings 3200
Accounts Payable 4500
property Taxes Payable 560
property tax Expenses 1800
owners capital 17600
Service Revenue 6690
Total: 29350 29350
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