The following trial balance of Geronimo AG 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 €1,000. 

(c) A transposition error was made in Accounts Receivable and Service Revenue; the correct 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 Geronimo, Capital, and credited to Cash.

Instructions

Prepare a correct trial balance.

Transcribed Image Text:

Geronimo Company Trial Balance April 30, 2022 Debit Credit Cash € 2,100 Accounts Receivable 2,570 Prepaid Insurance 700 Equipment € 8,000 Accounts Payable 4,500 Property Taxes Payable Geronimo, Capital 560 11,200 Service Revenue 6,960 Salaries and Wages Expense 4,200 Advertising Expense 1,100 Property Tax Expense 800 €18,190 €24,500