need help with part a2
Linda Morrow operates Cullumber Riding Academy, Inc. The academy's primary sources of revenue are riding fees and lesson fees, which are provided on a cash basis. Linda 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 these accounts: Cash, Accounts Receivable, Unearned Service Revenue, and Service Revenue. The academy owns 10 horses, a stable, a riding corral, riding equipment, and office equipment. These assets are accounted for in the following accounts: Horses, Buildings, and Equipment. The academy employs stable helpers and an office employee, who receive weekly salaries. At the end of each month, the mail usually brings bills for advertising, utilities, and veterinary service. Other expenses include feed for the horses and insurance. For its expenses, the academy maintains the following accounts: Supplies, Prepaid Insurance, Accounts Payable, Salaries and Wages Expense, Advertising Expense, Utilities Expense, Maintenance and Repairs Expense, Supplies Expense, and Insurance Expense. Linda's sole source of personal income is dividends from the academy. Thus, the corporation declares and pays periodic dividends. To account for stockholders' equity in the business and dividends, two accounts are maintained: Common Stock and Dividends. During the first month of operations, an inexperienced bookkeeper was employed. Linda 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. May 1 Cash 11,700 Unearned Service Revenue 11,700 (Issued common stock in exchange for $ 11,700 cash) 5 Cash 200 Service Revenue 200 (Received $ 200 cash for lesson fees) 7 Cash 390 Service Revenue 390 (Received $390 for boarding of horses beginning June 1) 9 Supplies Expense 1,170 1.170 Cash 1,170 (Purchased estimated 5 months' supply of feed and hay for $ 1,170 on account) 14 Equipment 60 Cash 600 (Purchased desk and other office equipment for $ 600 cash) 15 Salaries and Wages Expense 310 Cash 310 (Issued check to Linda Morrow for personal use) 20 Cash 111 Service Revenue 120 (Received $ 120 cash for riding fees) 31 Maintenance and Repairs Expense 60 Accounts Receivable 60 (Received bill of $ 60 from carpenter for repair services performed) For each journal entry that is correct, so state. Date May 1 Incorrect May 5 Correct May 7 Incorrect May 9 Incorrect V May 14 Incorrect May 15 Incorrect May 20 Incorrect May 31 Incorrect (a2) For each journal entry that is incorrect, prepare the entry that should have been made by the bookkeeper. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit
