Furniture Fix-Up (FFU) is your own business. You restore and refinish antique wood furniture making the tables, chairs, desks, cabinets etc, look as good as new. You use your own car to pick up and deliver pieces, and your own cell phone to take reservations from customer. Your first month's transactions are listed below. 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 them each $3,000 when you finish the job. They EACH give you a $1,000 cash deposit. April 15 Business is booming! You have so far collected $2,200 cash for services to happy homeowners. April 27 to happy homeowners. April 28 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. How will FFU record the April 1 transaction? (1 mark) a. No entry is needed. b. decrease Cash and increase Bank Loan Payable, $12 c. decrease Cash and increase Accounts Payable, $12 d. increase both Cash and Owner's Capital, \$12 Enter the letter that corresponds to your choice. (A B C D) How will FFU record the April 2 transaction? (1 mark) a. increase both Cash and Accounts Payable, $1,600 b. increase both Cash and Bank Loan Payable, $1,600 c. increase both Cash and Owner's Capital, $1,600 d. increase both Cash and Revenue, $1,600 e. increase both Cash and Retained Earnings, $1,600 Enter the letter that corresponds to your choice. (A B C D E) Enter the letter that corresponds to your choice. (A B C A How will FFU record the April 5 transaction? (1 mark) a. increase both Business Licence and Accounts Payable, $60 b. increase Business Licence and decrease Cash, $60 c. increase Office Expense and decrease Cash, $60 d. increase Arccounts Payable and decrease Cash, \$60 e. No entry is necessary because a business licence is intangible. Enter the letter that corresponds to your choice. (A B C How will FFU record the April 6 transaction? (1 mark) a. increase both Equipment and Accounts Payable, $565 b. increase Supplies Expense and decrease Cash, $500 c. increase Supplies and decrease Cash, $500 How will FFU record the April 7 transaction? (1 mark) a. increase Supplies and decrease Cash, $4,100 b. increase both Supplies Expense and Accounts Payable, $4,100 c. increase Supplies Expense and decrease Accounts Payable, $4,100 d. increase both Supplies and Accounts Payable, \$4,100 e. Increase both Equipment and Accounts Payable, $4,100 f. increase Equipment and decrease Cash, $4,100 Enter the letter that corresponds to your choice. (A B C D E F) How will FFU record the April 11 transaction? (4 marks) a. increase Advertising Expense and decrease Prepaid Advertising by $113 each, and also decrease Cash and increase Wages Expense by $80 each b. increase Advertising Expense and decrease Prepaid Advertising by $226 each, and also increase Cash and decrease Wages Expense by $80 each c. decrease Advertising Expense and increase Prepaid Advertising by $113 each, and also decrease Cash and increase Wages Expense by $80 each d. increase Advertising Expense and decrease Prepaid Advertising by $226 each, and also increase Cash and decrease Wages Expense by $80 each e. decrease Advertising Expense and increase Prepaid Advertising by $193 each, and also increase Cash and decrease Wages Expense by $80 each f. increase Advertising Expense and decrease Prepaid Advertising by $226 each, and also decrease Cash and increase Wages Expense by $80 each Enter the letter that corresponds to your choice. (A B C D E F) How will FFU record the April 12 transaction? (1 mark) a. increase both Cash and Service Revenue, $100 How will FFU record the use of the insurance on April 30 ? ( 1 mark) a. decrease Prepaid Insurance $216 and increase Insurance Expense $216 b. decrease Prepaid Insurance $200 and increase Insurance Expense $200 c. decrease Prepaid Insurance $2,400 and increase Insurance Expense $2,400 d. decrease Prepaid Insurance $2,592 and increase Insurance Expense $2,592 e. no entry is required. Enter the letter that corresponds to your choice. (A B C D E) A 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. (A B C D E) What is Total Liabilities on FFU's balance sheet for April 30? (2 marks) Furniture Fix-Up (FFU) is your own business. You restore and refinish antique wood furniture making the tables, chairs, desks, cabinets etc, look as good as new. You use your own car to pick up and deliver pieces, and your own cell phone to take reservations from customer. Your first month's transactions are listed below. 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 them each $3,000 when you finish the job. They EACH give you a $1,000 cash deposit. April 15 Business is booming! You have so far collected $2,200 cash for services to happy homeowners. April 27 to happy homeowners. April 28 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. How will FFU record the April 1 transaction? (1 mark) a. No entry is needed. b. decrease Cash and increase Bank Loan Payable, $12 c. decrease Cash and increase Accounts Payable, $12 d. increase both Cash and Owner's Capital, \$12 Enter the letter that corresponds to your choice. (A B C D) How will FFU record the April 2 transaction? (1 mark) a. increase both Cash and Accounts Payable, $1,600 b. increase both Cash and Bank Loan Payable, $1,600 c. increase both Cash and Owner's Capital, $1,600 d. increase both Cash and Revenue, $1,600 e. increase both Cash and Retained Earnings, $1,600 Enter the letter that corresponds to your choice. (A B C D E) Enter the letter that corresponds to your choice. (A B C A How will FFU record the April 5 transaction? (1 mark) a. increase both Business Licence and Accounts Payable, $60 b. increase Business Licence and decrease Cash, $60 c. increase Office Expense and decrease Cash, $60 d. increase Arccounts Payable and decrease Cash, \$60 e. No entry is necessary because a business licence is intangible. Enter the letter that corresponds to your choice. (A B C How will FFU record the April 6 transaction? (1 mark) a. increase both Equipment and Accounts Payable, $565 b. increase Supplies Expense and decrease Cash, $500 c. increase Supplies and decrease Cash, $500 How will FFU record the April 7 transaction? (1 mark) a. increase Supplies and decrease Cash, $4,100 b. increase both Supplies Expense and Accounts Payable, $4,100 c. increase Supplies Expense and decrease Accounts Payable, $4,100 d. increase both Supplies and Accounts Payable, \$4,100 e. Increase both Equipment and Accounts Payable, $4,100 f. increase Equipment and decrease Cash, $4,100 Enter the letter that corresponds to your choice. (A B C D E F) How will FFU record the April 11 transaction? (4 marks) a. increase Advertising Expense and decrease Prepaid Advertising by $113 each, and also decrease Cash and increase Wages Expense by $80 each b. increase Advertising Expense and decrease Prepaid Advertising by $226 each, and also increase Cash and decrease Wages Expense by $80 each c. decrease Advertising Expense and increase Prepaid Advertising by $113 each, and also decrease Cash and increase Wages Expense by $80 each d. increase Advertising Expense and decrease Prepaid Advertising by $226 each, and also increase Cash and decrease Wages Expense by $80 each e. decrease Advertising Expense and increase Prepaid Advertising by $193 each, and also increase Cash and decrease Wages Expense by $80 each f. increase Advertising Expense and decrease Prepaid Advertising by $226 each, and also decrease Cash and increase Wages Expense by $80 each Enter the letter that corresponds to your choice. (A B C D E F) How will FFU record the April 12 transaction? (1 mark) a. increase both Cash and Service Revenue, $100 How will FFU record the use of the insurance on April 30 ? ( 1 mark) a. decrease Prepaid Insurance $216 and increase Insurance Expense $216 b. decrease Prepaid Insurance $200 and increase Insurance Expense $200 c. decrease Prepaid Insurance $2,400 and increase Insurance Expense $2,400 d. decrease Prepaid Insurance $2,592 and increase Insurance Expense $2,592 e. no entry is required. Enter the letter that corresponds to your choice. (A B C D E) A 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. (A B C D E) What is Total Liabilities on FFU's balance sheet for April 30? (2 marks)