Rigger Advertising creates, plans, and handles advertising campaign in a three-state area. Recently, Rigger 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. (Click the icon to view the journal entries.) Read the 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.) Effect on Cash Effect on Total Assets Effect on Net Income Date 600 May 1 Understated Overstated 600 Overstated 600 $ $ 2 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 $6,700. 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 $26,000? Requirement 3. What is the correct amount of total assets if the total assets on the books before correcting the preceding transactions was $26,000? 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 $ X Data Table Journal Entry Accounts and Explanations Date Debit Credit May 1 Accounts Receivable 600 Service Revenue 600 Collected an account receivable. 2 Rent Expense 12,000 12,000 Cash Paid monthly rent, $1,200. 5 Cash 3,200 Accounts Receivable 3,200 Collected cash for services provided. 10 Supplies 4,900 X i Data Table 5 Cash 3,200 3,200 Accounts Receivable Collected cash for services provided. 10 Supplies 4,900 Accounts Payable 4,900 Purchased office equipment on account. 16 Dividends 5,400 Cash 5,400 Paid salaries 25 Accounts Receivable 4,800 Cash 4,800 Paid for supplies purchased earlier on account. i Requirements 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. Date Effect on Cash Effect on Total Assets Effect on Net Income $ $ 600 May 1 Understated 600 Overstated 600 Overstated 2. What is the correct balance of cash if the balance of cash on the books before correcting the preceding transactions was $6,700? 3. What is the correct amount of total assets if the total assets on the books before correcting the preceding transactions was $26,000? 4. What is the correct net income for May if the reported income before correcting the preceding transactions was $12,000? Print Done