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	15,000
	Unearned Service Revenue		15,000
	(Issued common stock in exchange for $15,000 cash)
5	Cash	250
	Service Revenue		250
	(Received $250 cash for lesson fees)
7	Cash	500
	Service Revenue		500
	(Received $500 for boarding of horses beginning June 1)
9	Supplies Expense	1,500
	Cash		1,500
	(Purchased estimated 5 months' supply of feed and hay for $1,500 on account)
14	Equipment	80
	Cash		800
	(Purchased desk and other office equipment for $800 cash)
15	Salaries and Wages Expense	400
	Cash		400
	(Issued check to Saira Morrow for personal use)
20	Cash	145
	Service Revenue		154
	(Received $154 cash for riding fees)
31	Maintenance and Repairs Expense	75
	Accounts Receivable		75
	(Received bill of $75 from carpenter for repair services performed)

Instructions

(a)

For each journal entry that is correct, so state. For each journal entry that is incorrect, prepare the entry that should have been made by the bookkeeper.