Riley Advertising creates, plans, and handles advertising campaigns in three provinces. Recently, Riley 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. 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 700 Overstated $ 700 Overstated $ 700 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 $6,700? 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 $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 $11,000? The correct net income for May is $ Journal Entry Date Accounts and Explanations Debit Credit May 1 Accounts Receivable 700 Service Revenue 700 Collected an account receivable. 2 Rent Expense 5,000 Cash 5,000 Paid monthly rent, $500. 5 Cash 3,200 Accounts Receivable 3,200 Collected cash for services provided. 3,300 10 Supplies Accounts Payable 3,300 Purchased office equipment on account. 16 Dividends 5,900 Cash 5,900 Paid salaries. 25 Accounts Receivable 4,600 Cash 4,600 Paid for supplies purchased earlier on account