Richards Advertising creates, plans, and handles advertising campaigns in three provinces. Recently, Richards 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. LOADING... (Click the icon to view the journal entries.)

Richards Advertising creates, plans, and handles advertising campaigns in three provinces. Recently, Richards 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 Date Effect on Cash Effect on Total Assets Effect on Net Income May 1 Understated $ 1,100 Overstated $ 1,100 Overstated $ 1,100 2 5 L 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 $6,300? 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 $23,000? 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 $9,000? The correct net income for May is $ May 1 Accounts Receivable 1,100 Service Revenue 1,100 Collected an account receivable. 14,000 2 Rent Expense Cash 14,000 Paid monthly rent, $1,400. 5 Cash 3,600 Accounts Receivable 3,600 Collected cash for services provided. 3,700 10 Supplies Accounts Payable 3,700 Purchased office equipment on account. 16 Dividends 5,800 Cash 5,800 25 Accounts Receivable 4,800 Cash 4,800 Paid for supplies purchased earlier on account