Expand Your Critical Thinking 2-6 Dyanna Craig operates Craig Riding Academy. The academy's primary sources of revenue are riding fees and lesson fees, which are paid on a cash basis. Dyanna also boards horses for owners, who are billed monthly for boarding fees. In a few cases, boarders pay in advance of expected use. For Its revenue transactions, the academy maintains the following accounts: Cash, Accounts Receivable, and Service Revenue. The academy owns 10 horses, a stable, a riding corral, riding equipment, and office equipment. These assets are accounted for in these accounts: Horses, Buildings, and Equipment. The academy also maintains the following accounts: Supplies, Prepaid Insurance, Accounts Payable, Salaries and Wages Expense, Advertising Expense, Utilities Expense, and Maintenance and Repairs Expense. Dyanna pays periodic cash dividends to stockholders. To record stockholders' equity in the business and dividends, three accounts are maintained: Common Stock, Retained Earnings, and Dividends. udy During the first month of operations, an inexperienced bookkeeper was employed. Dyanna Craig asks you to review the following eight entries of the 50 entries made during the month. In each case, the explanation for the entry is correct Date Account Titles and Explanation Debit Credit Cash May 1 17,500 Common Stock 17,500 (Issued common stock for $17,500 cash) Cash 5 275 Service Revenue 275 (Received $275 cash for lessons provided) 7 Cash 310 cudy Service Revenue 310 (Received $310 for boarding of horses beginning June 1) 14 Equipment 75 Cash 750 (Purchased desk and other office equipment for $750 cash) Salaries and Wages Expense 15 400 Cash 400 (Issued dividend checks to stockholders) 20 Cash 146 Service Revenue 164 (Received $164 cash for riding fees) Maintenance and Repairs Expense 30 65 Accounts Payable 65 (Received bill of $65 from carpenter for repair services performed) Supplies 1,750 31 Cash 1,750 (Purchased an estimated 2 months' supply of feed and hay for $1,750 on account) Answer the following. 390 What was the correct net income for May, assuming the bookkeeper originally reported net income of $4,800 after posting all 50 entries? (Errors only occur on the eight entries above.) Correct net income SHOW LIST Or ACCOUNTS LINK TO TEXT LINK TO TEXT What was the correct cash balance at May 31, assuming the bookkeeper reported a balance of $12,425 after posting all 50 entries (and the only errors occurred in the items listed above)? Correct cash balance Click if you would like to Show Work for this question: Open Show Work