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P2-4A The trial balance of the Garland Company shown below does not balance. Garland Company Trial Balance May 31, 2014 Cash Debit Credit Accounts Receivable £ 3,850 Prepaid Insurance 700 £ 2,750 Equipment 12,000 Accounts Payable Unearned Service Revenue Share Capital Ordinary 560 11,700 Service Revenue Salaries and Wages Expense Advertising Expense 8,690 4,200 1,100 Utilities Expense 4,500 800 £30,800 £20,050 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 Utilities 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 £8,960, respectively. 3. A debit posting to Salaries and Wages Expense of £200 was omitted. 4. A £1,000 cash dividend was debited to Share Capital-Ordinary for £1,000 and credited to Cash for £1,000. 5. A £520 purchase of supplies on account was debited to Equipment for £520 and credited to Cash for £520. 6. A cash payment of £450 for advertising was debited to Advertising Expense for £45 and credited to Cash for £45. 7. A collection from a customer for £420 was debited to Cash for £420 and credited to Accounts Payable for £420. Instructions Prepare a correct trial balance. Note that the chart of accounts includes the following: Dividends and Supplies, (Hint: It helps to prepare the correct journal entry for the transac tion described and compare it to the mistake made.)

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