Conan Gray operates Heather Pet Grooming Center with two main revenues: pet grooming and pet daycare which are paid on a cash basis. In few cases, pet owners pay in advance for pet daycare service. During the first month of operations, an inexperienced bookkeeper was employed. Conan Gray asked you to review the following 8 entries of total 50 entries made during the month. In each case, the explanation for the entry is correct. 1 18.000 01-Mei-20 Cash Owner's capital Invested $18,000 cash to start the business. 2 05-Mei-20 Cash 2.500 Pet grooming revenue Received $2,500 cash for pet daycare from 1-5 May. 3 3.000 07-Mei-20 Cash Pet daycare revenue Received $3,000 for pet daycare from 1-6 June. 4 14-Mei-20 Supplies 800 Cash Purchased desk and other office equipment for $8,000 cash. 5 2.000 15-Mei-20 Salaries expense Cash Owner withdrew $2,000 for personal use. 6 1.480 20-Mei-20 Cash Pet grooming revenue Received $1,840 cash for pet grooming service. 7 30-Mei-20 Utilities expense 750 Accounts payable Received bill of $750 from advertising agency for advertisement this month. 8 31-Mei-20 Supplies expense 2.500 Cash Purchased an estimated 2 months' supply of per grooming supplies on account. Instruction 1 Identify each journal entry that is correct. For each journal entry that is incorrect, prepare the entry that should have been made by the bookkeeper. 2 What was the correct net income for May, assuming the bookkeeper reported net income of $4,500 after posting all 50 entries (including 8 entries above)? 3 What was the correct Cash balance at May 31, assuming the bookkeeper reported a balance of $12,475 after posting all 50 entries (including 8 entries above)? Note: Show your calculation