This trial balance of Messed Up Ltd. does not balance:

Your review of the ledger reveals that each account has a normal balance. You also discover the following errors:
1. Prepaid Insurance, Accounts Payable, and Income Tax Expense were each understated by $100.
2. A transposition (reversal of digits) error was made in Service Revenue. Based on the posting made, the correct balance was $14,259.
3. A debit posting to Salaries Expense of $250 was omitted.
4. A $750 dividend paid to shareholders was debited to Salaries Expense and credited to Cash.
5. A $630 purchase of supplies on account was debited to Equipment and credited to Cash.
6. A payment of $320 for advertising was debited to Advertising Expense for $32 and credit to Cash for $32.
7. A $120 collection on account was recorded as a debit to Accounts Payable and a credit to Accounts Receivable.
8. A $2,000 note payable was issued in exchange for the purchase of equipment. The transaction was neither journalized nor posted.
Instructions
Prepare the correct trial balance.

Transcribed Image Text:

MESSED UP LTD. Trial Balance May 31, 2012 Debit 7,376 Credit Accounts receivable Equipment Accumulated depreciation Accounts payable Common shares Retained earnings Service revenue Salaries expense Advertising expense Depreciation expense Income tax expense Insurance expense $2,630 9,200 4,200 4,600 4,250 4,429 14,529 8,150 8 1,132 2,100 200 $21,241