Chapter 2 Exercise: Instructions: Record the impact of the following transactions on the Basic Accounting Equation and Cash Flows for a company that began operations on 1/1/2018. 1) Provided services and received cash-$3,000. 2) Paid $450 in advance to rent a storage space for 6 months. 3) Performed $2,500 of services on account 4) Accrued $800 of wages to be paid later. 5) Received $1,200 in advance for a 1 year service revenue contract. 6) Used cash to purchase Equipment-Cost: $2,000, Salvage Value; $200; Useful Life; 6 years. 7) Adjust the records to record the expiration of 4 months of rent on the storage space (Step #2). 8) Earned 2 months of the service contract (Step #5). Record the adjusting entry. 9) Adjust the records to record 4 months of depreciation on the Equipment. 10) Collected $1,700 from customers on account. *****See table on next page***** Balance Sheet Assets Labe Equity Accts Prepaid Cash Rec Accum Rent Equip Deal Accrued Unearned Wages Revenue Retained . Earnings Rev 2) (450) 450 3 4) 51 6) 7) 91 10 TOT Income Statement - Net Cash Exp Inc Flow