(Corrected Trial Balance) : The trial balance of Geronimo Company 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 Geronimo, Capital, and credited to Cash.
GERONIMO COMPANY Trial Balance April 30, 2010
Debit Credit
Cash $2,100
Accounts Receivable 2,570
Prepaid Insurance 700
Equipment $8,000
Accounts Payable 4,500
Property Tax Payable 560
Geronimo, Capital 11,200
Service Revenue 6,960
Salaries Expense 4,200
Advertising Expense 1,100
Property Tax Expense 800
__________ __________
$18,190 $24,500
Prepare a correct trial balance. (If answer is zero, please enter 0, do not leave any fields blank.)
GERONIMO COMPANY Trial Balance April 30, 2010
Debit Credit
Cash
Accounts Receivable
Prepaid Insurance
Equipment
Accounts Payable
Property Tax Payable
Geronimo, Capital
Geronimo, Drawing
Service Revenue
Salaries Expense
Advertising Expense
Property Tax Expense
mce_markernbsp;