The following are the classes of transactions and the titles of the journals used for Phillips Equipment Rental Co.

Purchases Returns, Rental revenue, Charge-off of uncollectible accounts, Acquisition of goods and services (except payroll), Rental allowances, Adjusting entries (for payroll), Payroll service and payment, Cash disbursements (except payroll)&Cash receipts

Cash receipts journal, Cash disbursements journal, Acquisitions journal, Revenue journal, Payroll journal &Adjustments journal

A. Identify one financial statement balance that is likely to be affected by each of the nine classes of transactions.

B. For each class of transactions, identify the journal that is likely to be used to record the transactions.

C. Identify the transaction cycle that is likely to be affected by each of the nine classes of transactions.

D. Explain how total rental revenue, as cited on the financial statements of Phillips Equipment Rental Co., is accumulated in journals and is summarized on the financial statements. Assume that there are several adjusting entries for rental revenue at the balance sheet date.