Furniture Fix-Up (FFU) is your own business. You restore and refinish antique wo furniture making the tables, chairs, desks, cabinets etc, look as good as new. You us your own car to pick up and deliver pieces, and your own cell phone to ta reservations from customer. Your first month's transactions are listed below. April 1 You set up a bank account and acquire a business credit card. The bank will charge you a fee of $12 at the end of each month. April 2 You borrow $1,600 from the bank. April 3 You deposit $5,000 of your own money into the business bank account. April 4 Your parents lend you an additional $5,000. They will not charge you interest, but want to be paid back within three years. April 5 You register your business name for $60 with Service Ontario, using the business credit card. April 6 You purchase, using your business credit card, supplies (i.e. varnish, shellac) for $500 plus HST. April 7 You purchase, using your business credit card, $4,100 worth of power tools from Home Depot. HST is already included. April 8 You buy a one-year liability insurance policy for $2,400, plus 8% tax, paying cash. April 10 You purchase for $300 cash, plus HST, 600 flyers to advertise your business. You haven't used any yet. April 11 You pay a student $80 cash to distribute 400 of your flyers. April 11 You pay a student $80 cash to distribute 400 of your flyers. April 12 You fixed one chair for a customer for free, to see if he liked it and would hire you for the rest of the set. You would normally have charged him $100. Two more customers hire you to restore their dining room sets. You will charge April 15 them each $3,000 when you finish the job. They EACH give you a $1,000 cash deposit. April 27 Busines res is booming! You have so far collected $2,200 cash for services to happy homeowners. April 28 You now have only $250 worth of supplies left. April 29 You spent $156 from your personal funds in car expenses this month. Two-thirds of this was business travel, all of which was paid by the business. April 30 You received your cell phone bill for the month. Of the $88, half were business calls. You will pay this peraonally and the business will reimburse you in May. April 30 One month of your insurance policy has expired. April 30 The bank takes its monthly charge from the business bank account, plus an additional $6 for interest on your loan. April 30 You deliver the furniture to one of the April 15 customers. He will pay you his balance next week. IGNORE the effect on inventory! April 30 You pay two-thirds of the balance owing on the business credit card. You will pay the rest next month. REQUIRED - Use the above information to answer all of the following questions. How will FFU record the bank transaction on April 30 ? ( 3 marks) a. decrease Cash $18, decrease Bank Loan Payable $6, increase Interest Expense $12 b. decrease Cash $18, increase Bank Fees Expense $12, increase Interest Expense $6 c. decrease Cash $18, increase Interest Expense $6, decrease Bank Fees Expense $12 d. decrease Cash $18, decrease Bank Loan Payable $12, increase Bank Fees Expense $6 e. decrease cash $18, decrease Bank Loan Payable $12, decrease Retained Earnings $6 f. decrease Cash $18, decrease Bank Loan Payable $6, decrease Retained Earnings $12 Enter the letter that corresponds to your choice. (A B C D E F) How will FFU record the credit card payment on April 30? (1 mark) a. decrease both Cash and Accounts Payable $4.769 b. decrease both Cash and Accounts Payable $4.725 c. decrease both Cash and Accounts Payable $3,194 d. decrease both Cash and Accounts Payable $1,575 e. decrease both Cash and Accounts Payable $3,150 Enter the letter that corresponds to your choice. (ABCD A What is Total Liabilities on FFU's balance sheet for April 30 ? ( 2 marks) How will FFU record the furniture delivery on April 30 ? (1 mark) a. no entry is required until the balance is paid b. increase both Cash and Deferred Revenue, $2,000 c. increase both Cash and Service Revenue, $2,000 d. increase both Accounts Receivable and Deferred Revenue, $2,000 e. increase both Accounts Receivable and Service Revenue, $2,000 f. increase Accounts Receivable $2,000, increase Service Revenue $3,000, and decrease Deferred Revenue $1,000 Enter the letter that corresponds to your choice. (ABCD