Question

* U T ABES The Ve C Theo G On Includi c Search C Exercle G Kenne om/courses/25565/assignments/3777698 Current Attempt in Progress The following trial balance of Coronado 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 $97. (c) A transposition error was made in Accounts Receivable and Service Revenue: the correct balances for Accounts Receivable and Service Revenue are $2,850 and $6,690, respectively. (d) A debit posting to Advertising Expense of $322 was omitted. (e) A $1,440 cash drawing by the owner was debited to Owner's Capital and credited to Cash Coronado Company Trial Balance April 30, 2020 Debit Credit Cash $5,203 Accounts Receivable 2,580 705 Prepaid Insurance Equipment $8290 Accounts Payable 4.210 Property Tax Payable 538 Owner's Capital 12.125 Service Revenue 6,960 Salaries and Wages Expense 4,038 Advertising Expense 1,024 Property Tax Expense 52104

Answer 1

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Excel Hool you want to do Review Tell me File Home bert Pige Layout Calibri Format Painter T # A Format Ots - хои View Clawfication wrap test M OS Center Conditional Format Formatting Table A24 f ) The given balance of Accounts receivable and Service revenue are incorrecto take the correct on 1 м 1 Particulars Credit Debit 5,203 2,850 802 8,290 3 Accounts Receivable 4 Prepaid insurance 5 Equipment 6 Accounts Payable 7 Property Tax Payable 8 Owner's Capital 9 Service Revenue 10 Salaries and Wages Expenses 11 Advertising Expenses 12 Property Tax Expenses 4,113 5 12,125 6,690 4,038 1,146 912 14 Total 23,466 23,466 16 Note 17 1) The nature of Prepaid insurance is debit therefore it should be increase by S97 because it is understated 18 2] The nature of Accounts payable and Property tax expenses are credit so both should be decrease by 507 in the given scenario. 19 3) Egipment is an Asset so the balance should be in Debit side. 204) Property tax payable is an liability therefore it should be credit in nature, 21 S) Service Revenue should be credit in nature because it is an inflow for us 22 6) Property Tax Expenses should be debit side because it is an expense, 23 ) Advertising expenses should be increase by 5322 because it was omitted while booking expense. 24 B) The given balance of Accounts receivable and Service revenue are incorrect so take the correct one as given in adjustment NESR T Shee Sheet1 © Alte 03 Lenovo ESC + co Tab apslock G

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