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E3-2 (Corrected Trial Balance)The trial balance of Wanda Landowska 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 $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 $1,500 cash drawing by the owner was debited to Wanda Landowska, Capital, and credited to Cash.
WANDA LANDOWSKA COMPANY
APRIL 30, 2007
Cash $ 4,800
Accounts Receivable 2,570
Prepaid Insurance 700
Equipment $ 8,000
Accounts Payable 4,500
Property Tax Payable 560
Wanda Landowska, Capital 11,200
Service Revenue 6,960
Salaries Expense 4,200
Advertising Expense 1,100
Property Tax Expense 800
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