Business, 19.10.2021 15:20 madiiiiiii69

Rural Esthetics Inc. provides esthetics services to a variety of clients. The owner of this business decided to handle the bookkeeping on his own. Unfortunately, his records contained several errors. You have been hired to review his transactions for the month of March to determine any corrections that might be necessary. In all cases, the owner described the transaction accurately in his journal explanations noted in italics. Date Account Description DEBIT CREDIT
March 3 Utilities expense 1,000
Cash 1,000
Paid monthly utilities bill, $100.
March 7 Accounts receivable 5,000
Cash 5,000
Collected cash from customers on account.
March 10 Accounts receivable 500
Cash 500
Paid for office supplies purchased previously on account.
March 14 Service revenue 2,500
Accounts receivable 2,500
Provided esthetics services on account.
March 17 Salaries expense 600
Cash 600
Paid a dividend of $600 to the owner of Rural Esthetics Inc.
March 25 Equipment 3,000
Accounts payable 3,000
Purchased $3,000 of equipment on account.
Required:
For each of the preceding entries, drag and drop to indicate the effect of the error (if any) on cash, total assets, and net income (understatement, overstatement, or no impact).

Date Effect on Cash Effect on Total Assets Effect on Net Income
Mar 3 blank blank blank
Mar 7 blank blank blank
Mar 10 blank blank blank
Mar 14 blank blank blank
Mar 17 blank blank blank
Mar 25 blank blank blank

Understatement No Impact Overstatement

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Rural Esthetics Inc. provides esthetics services to a variety of clients. The owner of this business...

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