Question

The following trial balance of Swifty 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 $103. (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 $279 was omitted. (e) A $1,480 cash drawing by the owner was debited to Owner's Capital and credited to Cash Credit Swifty Company Trial Balance April 30, 2020 Debit Cash $4,645 Accounts Receivable 2,580 Prepaid Insurance 716 Equipment Accounts Payable Property Tax Payable 612 Owner's Capital Service Revenue 6,960 Salaries and Wages Expense 4,519 Advertising Expense 1,079 Property Tax Expense $21,111 $8,630 4,690 11,770 735 $25,825 Prepare a correct trial balance SWIFTY COMPANY Trial Balance Version 4.24.20.1

Answer 1

Anowero- Swifty company Trial Balance April 30,2020 Pasticular. Cash Accounts Receivable Prepaid Insurance Equipment Accounts payable Property Tax payable Owners Capital owner's drawing Service Revenue Galaries and wages Expenses Advertising Expenses Property Tad Expenses Total Gebit Credit $ 4645 32850 6819 88650 & § 4554 § 612 $ 13250 $ 1480 $ 6690 4519 $1358 $838 $ 25139 $ 25139 CS-Scanned with CamScanner

NOTES, L. due to debit footings understatement Prepaid Ensurance and property tad expense added up by & 103 and Accounts payable deducted by & 403 2. Equipment and property Tax expense ghould be 'Debit Balance & property Tad payable and service revenue should be 'Credit balance Bo & 1480 was added to 'owner's Capital' Because it was debited earlier and this & 14,90 added to 'Owner's drowings' 4o Rectified accounts Receivable and service revenue balance. 3. $279 added to Advertising Expenses becouse it was on omitted earlier CS Scanned with CamScanner