1460T_c03.qxd11/18/0508:34 am Page107 EQA Exercises·107 normal balance.(b)The debit footings in Prepaid Insurance,Accounts Payable,and Property Tax Ex- pense 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 TRIAL BALANCE APRL30,2007 Debit Credit 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 $20,890 $24,500 Instructions Prepare a correct trial balance (L04) E3-3 (Corrected Trial Balance)The trial balance of Blues Traveler Corporation does not balance. BLUES TRAVELER CORPORATION ⊕ TRIAL BALANCE APRL30,2007 Debit Credit Cash $5.912 Accounts Receivable 5.240 Supplies on Hand 2,967 Furniture and Equipment 6.100 Accounts Payable S7,044 Common Stock 8,000 Retained Earnings 2,000 Service Revenue 5,200 Office Expense 4,320 $24,539 $22,244 An examination of the ledger shows these errors. 1.Cash received from a customer on account was recorded (both debit and credit)as $1,380 instead of$1,830. 2.The purchase on account of a computer costing $3,200 was recorded as a debit to Office Expense and a credit to Accounts Payable. 3.Services were performed on account for a client,$2,250,for which Accounts Receivable was deb- ited $2,250 and Service Revenue was credited $225. 4.A payment of $95 for telephone charges was entered as a debit to Office Expenses and a debit to Cash. 5.The Service Revenue account was totaled at $5,200 instead of $5,280. Instructions From this information prepare a corrected trial balance. (L0 4)E3-4 (Corrected Trial Balance)The trial balance of Watteau Co.(shown on the next page)does not balance.Exercises • 107 normal balance. (b) The debit footings in Prepaid Insurance, Accounts Payable, and Property Tax Ex￾pense 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 TRIAL BALANCE APRIL 30, 2007 Debit Credit 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 $20,890 $24,500 An examination of the ledger shows these errors. 1. Cash received from a customer on account was recorded (both debit and credit) as $1,380 instead of $1,830. 2. The purchase on account of a computer costing $3,200 was recorded as a debit to Office Expense and a credit to Accounts Payable. 3. Services were performed on account for a client, $2,250, for which Accounts Receivable was deb￾ited $2,250 and Service Revenue was credited $225. 4. A payment of $95 for telephone charges was entered as a debit to Office Expenses and a debit to Cash. 5. The Service Revenue account was totaled at $5,200 instead of $5,280. Instructions From this information prepare a corrected trial balance. E3-4 (Corrected Trial Balance) The trial balance of Watteau Co. (shown on the next page) does not balance. BLUES TRAVELER CORPORATION TRIAL BALANCE APRIL 30, 2007 Debit Credit Cash $ 5,912 Accounts Receivable 5,240 Supplies on Hand 2,967 Furniture and Equipment 6,100 Accounts Payable $ 7,044 Common Stock 8,000 Retained Earnings 2,000 Service Revenue 5,200 Office Expense 4,320 $24,539 $22,244 Instructions Prepare a correct trial balance. E3-3 (Corrected Trial Balance) The trial balance of Blues Traveler Corporation does not balance. (L0 4) (L0 4) 1460T_c03.qxd 11/18/05 08:34 am Page 107