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1. The trial balance of Gamo 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 Br. 1,000. (c) A transposition  error  was  made  in Accounts  Receivable  and Service  Revenue; the correct balances for Accounts Receivable and Service Revenue are Br. 2,750 and Br. 6,690, respectively. (d) A debit posting to Advertising Expense of Br. 300 was omitted. (e) A Br.

3,200 cash drawing by the owner was debited to Geronimo, Capital, and credited to Cash.

 

 

Gamo Company Trial Balance April 30, 2015

 

Cash

Accounts Receivable Prepaid Insurance Equipment

Accounts Payable Property Tax Payable Gamo, Capital Service Revenue Salaries Expense Advertising Expense

Property Tax Expense

Debit

Credit

Br.  2,100

2,570

700

 

 

 

560

 

6,960

4,200

1,100

               .

Br. 18,190

 

 

 

 

Br.   8,000

4,500

 

11,200

 

 

 

 

           800

Br. 24,500

Required: Prepare a correct trial balance.