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E3-2B (Corrected Trial Balance) The trial balance of Vista Company does not balance. Your review of the ledger reveals the following: (a) Each account had a normal balance. (b) The credit footings in Prepaid Insurance, Accounts Payable, and Advertising Expense were each understated $500. (c) A transposition error was made in Accounts Receivable and Service Revenue; the correct balances for Accounts Receivable and Service Revenue are $1,840 and $12,060, respectively. (d) A credit posting to Property Tax Expense of $380 was omitted. (e) A $2,000 cash drawing by the owner was debited to Vista, Capital, and credited to Cash.
APRIL 30, 2014
Cash $ 5,600
Accounts Receivable 2,380
Prepaid Insurance 900
Equipment $ 9,600
Accounts Payable 6,000
Property Tax Payable 1,200
Owner’s Capital 4,900
Service Revenue 12,600
Advertising Expense 600
Property Tax Expense 1,350
Prepare a correct trial balance.
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