This trial balance of Lagerstrom Company does not balance.

Your review of the ledger reveals that each account has a normal balance. You also discover the following errors.1. The totals of the debit sides of Prepaid Insurance, Accounts Payable, and Income Tax Expense were each understated $100.2. Transposition errors were made in Accounts Receivable and Service Revenue. Based on postings made, the correct balances were $2,570 and $7,960, respectively.3. A debit posting to Salaries and Wages Expense of $500 was omitted.4. A $600 cash dividend was debited to Common Stock for $600 and credited to Cash for $600.5. A $350 purchase of supplies on account was debited to Equipment for $350 and credited to Cash for $350.6. A cash payment of $490 for advertising was debited to Advertising Expense for $49 and credited to Cash for $49.7. A collection from a customer for $240 was debited to Cash for $240 and credited to Accounts Payable for $240.InstructionsPrepare the correct trial balance, assuming all accounts have normal balances. (Note: The chart of accounts also includes the following: Dividends andSupplies.)

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LAGERSTROM COMPANY Trial Balance May 31, 2012 Debit Credit $ 6,340 Cash Accounts Receivable Prepaid Insurance Equipment Accounts Payable Income Taxes Payable Common Stock $ 2,750 700 8,000 4,100 850 5,700 Retained Earnings 6,000 Service Revenue 7,690 Salaries and Wages Expense Advertising Expense Income Tax Expense 4,200 1,100 900 $28,680 $19,650