The trial balance of Wanda Landowska (a sole proprietorship), shown below, does

Question

The trial balance of Wanda Landowska (a sole proprietorship), shown below, 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 $100. (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 $1,517 cash drawing by the owner was debited to Owner's Capital and credited to Cash.

Explanation / Answer

Wanda Landowska Adjusted Trial Balance As on April 30.2014. Accounts   Dr $ Cr $ Cash                      5,500 Accounts Receivable                      2,750 Prepaid Insurance                          859 Equipment                      8,700 Accounts Payable                 4,459 Property Tax Payable                     619 Owners' Capital               13,417 Drawings                        1,517 Service Revenue                 6,690 Salaries & Wages Expense                      3,500 Advertising Expense                      1,459 Propert Tax Expense                          900 Total                      25,185               25,185

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