Question Help Rains Advertising creates, plans, and handles advertising campaigns in three provinces. Recently, Rains had to replace an inexperienced office worker in charge of bookkeeping because of some serious mistakes that had been uncovered in the accounting records. You have been hired to review these transactions to determin any corrections that might be necessary. In all cases, the bookkeeper made an accurate description of the transaction but did not correctly record the transaction in the journal. (Click the icon to view the journal entries.) Requirements Requirement 1. 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. (If the error has no effect, select "Correct" and leave the amount cell blank.) Date Effect on Cash Effect on Total Assets Effect on Net Income May 1 Understated $ 1,500 Overstated $ 1,500 Overstated $ 1,500 2 5 10 16 25 Requirement 2. What is the correct balance of cash if the balance of cash on the books before correcting the preceding transactions was $6,800? The correct cash balance is $ Requirement 3. What is the correct amount of total assets if the total assets on the books before correcting the preceding transactions was $27,000? The correct amount of total assets is $ Requirement 4. What is the correct net income for May if the reported income before correcting the preceding transactions was $12,000? The correct net income for May is $ Date Debit Credit May Journal Entry Accounts and Explanations 1 Accounts Receivable Service Revenue Collected an account receivable. 1,500 1,500 20,000 2 Rent Expense Cash Paid monthly rent, $2,000. 20,000 3,000 5 Cash Accounts Receivable Collected cash for services provided. 3,000 3,300 10 Supplies Accounts Payable Purchased office equipment on account. 3,300 5,300 16 Dividends Cash Paid salaries. 5,300 4,400 25 Accounts Receivable Cash Paid for supplies purchased earlier on account. 4,400