Rembrandt Advertising creates, plans, and handles advertising campaigns in three provinces. Recently, Rembrandt 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. (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 May 1 Understated $ May 2 Understated 1,700 3600 Effect on Total Assets Overstated Understated $ 1,700 3600 Effect on Net Income Overstated Understated $ 1,700 3600 May 5 Correct Understated 2600 May 10 Correct Correct Understated Correct 2600 May 16 Correct May 25 Correct Correct Overstated Overstated 4700 5200 Correct Requirement 2. What is the correct balance of cash if the balance of cash on the books before correcting the preceding transactions was $6,600? What is the correct cash balance? Requirement 3. What is the correct amount of total assets if the total assets on the books before correcting the preceding transactions was $22,000? What is the correct amount of total assets? Requirement 4. What is the correct net income for May if the reported income before correcting the preceding transactions was $12,000? What is the correct net income for May? tA Dus er th ter Journal entries ent Date er Fed Question 28 Journal Entry Accounts and Explanations Debit Credit May 1 Accounts Receivable 1,700 Service Revenue 1,700 Collected an account receivable. May 2 Rent Expense Cash Paid monthly rent, $400. May 5 Cash Accounts Receivable Collected cash for services provided. er May 10 Supplies ne Accounts Payable er Purchased office equipment on account. ne May 16 Dividends er Cash ne Paid salaries. Print Done 4,000 4,000 2,600 2,600 4,700 4,700 5,200 5,200