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 determine 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.

Please help me in understanding how to find the correct cash balance, total assets, and net income as I am unclear in comprehending them.

Please help me with this accounting question! Thank you!

Rains Advertising creates, plans, and handles advertising campaigns in three provinces. Recently, Rains had to replace an inexperienced office worke records. You have been hired to review these transactions to determine any corrections that might be necessary. In all cases, the bookkeeper made a (Click the icon to view the journal entries.) Journal entries Requirements May 1 Accounts Receivable 900 Service Revenue Collected an account receivable. 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 transa amount cell blank.) Date Effect on Cash Effect on Total Assets Effect on Net Income May 2 Rent Expense 8,000 Understated $ Overstated $ 900 Overstated $ Cash May 1 May 2 900 7200 900 7200 Understated Understated 7200 Understated Paid monthly rent, $800. May 5 Correct Understated 3000 Understated 3000 Correct Correct Correct May 5 Cash 3,000 May 10 May 16 May 25 Correct Correct Overstated 5000 Accounts Receivable Correct Overstated 4400 Correct Collected cash for services provided. Requirement 2. What is the correct balance of cash if the balance of cash on the books before correcting the preceding transactions was $6,200? May 10 3,500 What is the correct cash balance? Supplies Accounts Payable Purchased office equipment on account. Requirement 3. What is the correct amount of total assets if the total assets on the books before correcting the preceding transactions was $23,000? What is the correct amount of total assets? May 16 Dividends 5,000 Requirement 4. What is the correct net income for May if the reported income before correcting the preceding transactions was $10,000? What is the correct net income for May? May 5 3,000 Cash Accounts Receivable Collected cash for services provided. May 10 3,500 Supplies Accounts Payable Purchased office equipment on account May 16 Dividends 5,000 Cash Paid salaries. May 25 Accounts Receivable 4,400 Cash Paid for supplies purchased earlier on account