Homework: Assignment 4 0 of 3 pts 41 of 3(0 MN Score: 0%, 0 of 10pt of the transaction. 900 Score: 0 of 3 pts E2-71 (similar to Romano Advertising creates, plans, and handles advertising campaign in a three mistakes that had been uncovered in the accounting records. You have been hire description of the transaction. (Click the icon to view the journal entries.) Read the requirements. Requirement 1. For each of the preceding entries, indicate the effect of the error c select "Correct" and leave the amount cell blank.) Date Effect on Cash Effect on Total Assets May 1 Understated$ 900 Overstated $ 90 2 Correct Overstated Understated Choose from any list or enter any number in the input fields and then click Checl 7 parts remaining Journal Entry ate Accounts and Explanations Debit Credit May 1 Accounts Receivable 900 Service Revenue 900 Collected an account receivable. 2 Rent Expense 16,000 Cash 16,000 Paid monthly rent, $1,600 5 Cash 3,600 3,600 Collected cash for services provided 10 Supplies 4,500 Print Done DII F6 5 5 Cash 3,600 Accounts Receivable 3,600 Collected cash for services provided. 10 Supplies 4,500 Accounts Payable Purchased office equipment on account. 4,500 16 Dividends 4,900 Cash 4,900 Paid salaries. 3,900 Cash 3,900 Paid for supplies purchased earlier on account Print Done 20 F5 F6 F8 F9 Requirements For each of the preceding entries, indicate the effect of the error on cash, total assets, and net income. The answer for the first transaction has been provided as an example. 1. Date Effect on Cash Effect on Total Assets Effect on Net Income $ May 1 What is the correct balance of cash if the balance of cash on the books before correcting the preceding transactions was $6,000? What is the correct amount of total assets if the total assets on the books before correcting the preceding transactions was $26,000? What is the correct net income for May if the reported income before correcting the preceding transactions was $17,000? Understated 900 Overstated $ 900 Overstated S 900 2. 3. 4. Print Done n the input fields and then click Check Answer. Clear All