Saira Morrow operates Dressage Riding Academy, Inc. The academy's primary sources of revenue are riding fees and lesson fees, which are provided on a cash basis. Saira also boards horses for owners, who are billed monthly for boarding fees. In a few cases, boarders pay in advance of expected use. For its revenue transactions, the academy maintains these accounts: Cash, Accounts Receivable, Unearned Service Revenue, and Service Revenue.

The academy owns 10 horses, a stable, a riding corral, riding equipment, and office equipment. These assets are accounted for in the following accounts: Horses, Buildings, and Equipment.

The academy employs stable helpers and an office employee, who receive weekly salaries. At the end of each month, the mail usually brings bills for advertising, utilities, and veterinary service. Other expenses include feed for the horses and insurance. For its expenses, the academy maintains the following accounts: Supplies, Prepaid Insurance, Accounts Payable, Salaries and Wages Expense, Advertising Expense, Utilities Expense, Maintenance and Repairs Expense, Supplies Expense, and Insurance Expense.

Saira's sole source of personal income is dividends from the academy. Thus, the corporation declares and pays periodic dividends. To account for stockholders' equity in the business and dividends, two accounts are maintained: Common Stock and Dividends.

During the first month of operations, an inexperienced bookkeeper was employed. Saira asks you to review the following eight entries of the 50 entries made during the month. In each case, the explanation for the entry is correct.

May 1

Cash

11,100

Unearned Service Revenue

11,100

(Issued common stock in exchange for $11,100 cash)

5

Cash

190

Service Revenue

190

(Received $190 cash for lesson fees)

7

Cash

370

Service Revenue

370

(Received $370 for boarding of horses beginning June 1)

9

Supplies Expense

1,110

Cash

1,110

(Purchased estimated 5 months' supply of feed and hay for $1,110 on account)

14

Equipment

60

Cash

600

(Purchased desk and other office equipment for $600 cash)

15

Salaries and Wages Expense

300

Cash

300

(Issued check to Saira for personal use)

20

Cash

105

Service Revenue

114

(Received $114 cash for riding fees)

31

Maintenance and Repairs Expense

55

Accounts Receivable

55

(Received bill of $55 from carpenter for repair services performed)

What was the correct net income for May, assuming the bookkeeper originally reported net income of $3,330 after posting all 50 entries?

What was the correct cash balance at May 31, assuming the bookkeeper reported a balance of $9,230 after posting all 50 entries?