a. Problem 2-2 Listed below is the business activity of the Katherine Smith Advisory Service entity. Katherine Smith, the owner, deposited $50,000 in the business account. b. Paid 5 months' rent, $10,000 C. Purchased a one year insurance policy, $1,800 d. Paid employees, $2,000 Provided service to a client and collected $2,500. f. Received payment in advance for services that would be provided at a later date, $2,500. Purchased office supplies on account, $450. h. Provided service to a client on account, $3,900. i. Collected $1,250 of the outstanding accounts receivable. j. Paid the outstanding account payable, $450. Required a. b. Determine if each activity is a transaction. List the accounts that were affected by each transaction and determine if they were increased or decreased. Use the following account titles: Cash Accounts Payable Accounts Receivable Unearned Service Revenue Office Supplies K. Smith, Capital Prepaid insurance Service Revenue Prepaid Rent Salaries Expense Use the account titles in requirement "b" to prepare journal entries for the transactions Open t-accounts for each account listed in requirement b. Transfer the transaction data from the journal to the t-accounts. C. d