Reference no: EM13513687

The following trial balance of Scarlatti Corporation does not balance. GERONIMO COMPANY TRIAL BALANCE APRIL 30, 2012Debit Credit Cash $ 2,100 Accounts Receivable 2,570 Prepaid Insurance 700 Equipment $ 8,000 Accounts Payable 4,500 Property Taxes Payable 560 Owner's Capital 11,200 Service Revenue 6,960 Salaries and Wages Expense 4,200 Advertising Expense 1,100 Property Tax Expense 800 $18,190 $24,500 SCARLATTI CORPORATION TRIAL BALANCE APRIL 30, 2012Debit Credit Cash $ 5,912 Accounts Receivable 5,240 Supplies 2,967 Equipment 6,100 Accounts Payable $ 7,044 Common Stock 8,000 Retained Earnings 2,000 Service Revenue 5,200 Office Expense 4,320 $24,539 $22,244 An examination of the ledger shows these errors.

1. Cash received from a customer on account was recorded (both debit and credit) as $1,580 instead of $1,850.

2. The purchase on account of a computer costing $1,900 was recorded as a debit to Office Expense and a credit to Accounts Payable.

3. Services were performed on account for a client, $2,250, for which Accounts Receivable was debited $2,250 and Service Revenue was credited $225.

4. A payment of $95 for telephone charges was entered as a debit to Office Expenses and a debit to Cash. 5.The Service Revenue account was totaled at $5,200 instead of $5,280.

Instructions From this information, prepare a corrected trial balance. balances for Accounts Receivable and Service Revenue are $2,750 and $6,690, respectively.

(d) A debit posting to Advertising Expense of $300 was omitted.
(e) A $3,200 cash drawing by the owner was debited to Owner's Capital and credited to Cash.