Saira Morrow operates Dressage Riding Academy, Inc. Theacademy's primary sources of revenue are riding fees and lessonfees, which are provided on a cash basis. Saira also boards horsesfor owners, who are billed monthly for boarding fees. In a fewcases, boarders pay in advance of expected use. For its revenuetransactions, the academy maintains these accounts: Cash, AccountsReceivable, Unearned Service Revenue, and Service Revenue.

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

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

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

During the first month of operations, an inexperiencedbookkeeper was employed. Saira asks you to review the followingeight entries of the 50 entries made during the month. In eachcase, 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 $1,500on 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 servicesperformed)

Instructions

(a)  

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