assihmnet4 - Decision Making Across The Organization BYP...

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Decision Making Across The Organization BYP 2-4 Lisa Ortega is president of Ortega Riding Academy, Inc. The academy’s primary sources of revenue are riding fees and lesson fees, which are paid on a cash basis. Lisa 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 the following accounts: No.1 Cash, No.5 Boarding Accounts Receivable,No.27 Unearned Boarding Revenue,No.51 Riding Revenue,No.52 Lesson Revenue, and No.53 Boarding Revenue Instructions With the class divided into groups, answer the following. (a) Identify each journal entry that is correct. For each journal entry that is incorrect, prepare the entry that should have been made by the bookkeeper. (b) Which of the incorrect entries would prevent the trial balance from balancing? (c) What was the correct net income for May, assuming the bookkeeper reported net income of $4,500 after posting all 50 entries? (d) What was the correct cash balance at May 31, assuming the bookkeeper reported a balance of $12,475
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assihmnet4 - Decision Making Across The Organization BYP...

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