2024 – E3 2B Corrected Trial Balance The trial balance of Vista Company does not balance Your review of the ledger reveals

E3-2B (Corrected Trial Balance) The trial balance of Vista Company does not balance. Your review of the ledger reveals the following: (a) Each account had a normal balance. (b) The credit footings in Prepaid Insurance, Accounts Payable, and Advertising Expense were each understated $500. (c) A transposition error was made in Accounts Receivable and Service Revenue; the correct balances for Accounts Receivable and Service Revenue are $1,840 and $12,060, respectively. (d) A credit posting to Property Tax Expense of $380 was omitted. (e) A $2,000 cash drawing by the owner was debited to Vista, Capital, and credited to Cash.

 

VISTA COMPANY

TRIAL BALANCE

APRIL 30, 2014

                                       Debit                Credit

Cash                            $ 5,600

Accounts Receivable      2,380

Prepaid Insurance             900

Equipment                                           $ 9,600

Accounts Payable          6,000

Property Tax Payable                            1,200

Owner’s Capital                                      4,900

Service Revenue                                   12,600

Salari                                                      6,150

Advertising Expense      600

Property Tax Expense 1,350

 

                                 $16,830             $34,450

Instructions

Prepare a correct trial balance.