Professional Documents
Culture Documents
STERLING COMPANY
Trial Balance
31st May 2010
Debit
Cash 5850
Accounts Receivable
Prepaid Insurance 700
Equipment 8000
Accounts Payable
Property Taxes Payable 560
M. Sterling, Capital
Service Revenue 6690
Salaries Expense 4200
Advertising Expense
Property Tax Expense 800
26800
Your review of the ledger reveals that each account has a normal balance.You also dis
1. The totals of the debit sides of Prepaid Insurance, Accounts Payable, and Property T
2. Transposition errors were made in Accounts Receivable and Service Revenue. Based
postings made, the correct balances were $2,570 and $6,960, respectively.
4. A $1,000 cash drawing by the owner was debited to M. Sterling, Capital for $1,000
5. A $520 purchase of supplies on account was debited to Equipment for $520 and cre
6. A cash payment of $450 for advertising was debited to Advertising Expense for $45
7. A collection from a customer for $210 was debited to Cash for $210 and credited to
Instructions
Prepare a correct trial balance
Equipment 520
Cash 520
Cash 520
Equipment 520
Advertising Expense 45
Cash 45
Credit
2750
4500
11700
1100
20050
ounts Payable, and Property Tax Expense were each understated $100.
Cash (5850+520-405)
Accounts Receivable (2570-210)
Prepaid Insurance (700+100)
Supplies (0+520)
Equipment (8000-520)
Accounts Payable (4500-100+520-210)
Property Taxes Payable
M. Sterling, Capital (11700+1000)
M. Sterling, Drawing(0+1000)
Service Revenue (6960)
Salaries Expense (4200+200)
Advertising Expense (1100+405)
Property Tax Expense (800+100)
STERLING COMPANY
Trial Balance
31st May 2010
Debit Credit
5965
2360
800
520
7480
4710
560
12700
1000
6960
4400
1505
900
24930 24930