Boost LTE 6:28 PM Done PRINCIPLES OF ACCOUNTIN... s. Using accrual accounting, expenses are recorded and reported only a When they are incurred, whether or not cash is paid When they If they are paid before they are incurred are incurred and paid at the same time d If they are paid after they are incurred 9. Generally accepted accounting principles requires that companies use the of accounting. a Cash basis Deferral basis e Accrual basis d Account basis 1o All adjusting entries always involve Only income statement accounts Only balance sheet accounts e. The cash account d At least one income statement account and one balance sheet account Short Problem (10 pts) Show your calculation . For the following, mark a "D" if the following account normally has a debit balance and mark a "C" if the following account normally has a credit balance. 1. Notes Payable 2. Mortgage Payable 3. Drawing 4. Accounts Receivable S. Capital 6. Rent Revenue 7. Unearned Income 8. Utility Expense 9. Automobiles 10 Fees Earned Short Problem (20 pts.) 2. Record the following selected transactions for April, identifying each entry by letter a Received $12,000 from Katie Long, owner. b. Purchased equipment for $25,000 paying $10,000 in cash and giving a note payable for the remainder