4 Journal Entries The chart of accounts for Fireball Corporation, a consulting services firm, who uses the accrual basis of accounting, is as follows: A. Cash K. Notes Payable B. Accounts Receivable L. Deferred Income C. Reserve for Bad Debt M. Distributions to Owner (Equity) D. Investments N. Retained Earnings E Intercompany Receivable O. Revenue F. Equipment P. Cost of Revenue G Accumulated Depreciation Q. Investment Income H. Prepaid Expense R. Operating Expenses 1 Accounts Payable S. Income Tax Expense J. Accrued Expenses For the monthly transactions listed below, indicate (by letter) the account(s) that should be debited and credited (feel free to show your work as there may be more than one appropriate response): DEBIT CREDIT 1. Employees earn wages for the current month but are not paid until the following month 2. Rent payment made in advance was charged to expense and needs to be adjusted at month-end. 3. To adjust investments account for securities that were sold at a gain. 4. The company pays an expense on behalf of 3 related entity 5. To record income taxes due within the next year by the company 6. The related entity repays the company for expenses paid per #4 7. Equipment is purchased. The seller accepts a note in addition to a cash down payment. 8. Interest is recorded for the amount due on the note in #7 but not yet paid 9. Depreciation is recorded on the asset purchased in #7 10. The first month's interest on the note in #7 is due. 11. An estimate of uncollectible accounts receivable is recorded. 12. An account is directly written off from the receivable ledger (amount had not previously been allowed for) 13. Accounting services are provided to the company, but invoice is not received until the following month 14. Insurance that was prepaid at the beginning of the year needs to be recognized for the current month. 15. Salesmen's "commission" were improperty recorded as "salaries and a correcting entry is made. 16. Accrued income taxes are paid, 17. A firm receives payment from a client in advance of services performed