ANSWER QUESTION C THE ANSWER IS NOT $3620!($c$)$

What was the correct net income for May, assuming the bookkeeper originally reported net income of $\backslash (\backslash$$ $3,420\backslash )$ after posting all $50$ entries?

Correct net income $\backslash$$

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Attempts: $0$ of $3$ used Patricia Morrow operates Crane Riding Academy, Inc. The academy's primary sources of revenue are riding fees and lesson fees, which are provided on a cash basis. Patricia 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 ring, 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.

Patricia'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. Patricia 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.

$($Issued common stock in exchange for $\backslash$$$11,400$ cash$)$

$($Received $\backslash (\backslash$$ $380\backslash )$ for boarding of horses beginning June $1)$

Cash

$($Purchased estimated $5$ months' supply of feed and hay for $\backslash$$$1,140$ on account$)$

$14$ Equipment

Cash

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

$15$ Salaries and Wages Expense

Cash

$($Issued check to Patricia Morrow for personal use$)$

$20$

Cash

$125$

Service Revenue

$($Received $\backslash (\backslash$$ $152\backslash )$ cash for riding fees$)$

$31$ Maintenance and Repairs Expense

Accounts Receivable

$($Received bill of $\backslash$$$55$ from carpenter for repair services performed$)$ For each journal entry that is incorrect, prepare the entry that should have been made by the bookkeeper. $($Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amount in the relevant debit OR credit box. Entering zero in ALL boxes will result in the question being marked incorrect. List all debit entries before credit entries.$)$

Common Stock

Unearned Service Revenue

II

Supplies Expense

$\backslash [$

$1080$

$\backslash ]$

$\backslash [$

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$\backslash ]$

Cash

Cash

$\backslash [$

$152$

$\backslash ]$

Service Revenue

Maintenance and Repairs Expense

Accounts Receivable

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