Furniture Fix-Up 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 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 two-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. You fixed one chair for a customer for free, to see if he liked it and would hire April 12 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. Business is booming! You have so far collected $2,200 cash for services April 27 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. The business pays from the bank account. You received your cell phone bill for the month. Of the $88, half were business April 30 calls. The business will reimburse you next month. April 30 One month of your insurance policy has expired. The bank takes its monthly charge from the business bank account, April 30 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! You April 30 pay two-thirds of the balance owing on the business credit card. You will pay the rest next month. Record the transactions into the expanded accounting equation using account names. Use that information to answer all of the following questions. Question 76 (1 point) How will FFU record the April 29 transaction? a) increase both Accounts Payable and Car Expense, $52 b) decrease Cash and increase Car Expense, $52 C) increase both Accounts Payable and Car Expense, $104 d) decrease Cash $52, increase Accounts Payable $104, and increase Car Expense $156 e) decrease Cash and increase Car Expense, $104 Question 77 (1 point) How will FFU record the April 30 transaction? (the phone bill) a) decrease Cash $44, increase Accounts Payable $44, and increase Phone Expense $88 b) decrease Cash and increase Phone Expense, $44 c) increase both Accounts Payable and Phone Expense, $44 d) increase both Accounts Payable and Phone Expense, $88 e) decrease Cash and increase Phone Expense, $88 Question 78 (1 point) How will FFU record the expiry of the insurance on April 30? a) decrease Prepaid Insurance and increase Insurance Expense $900 b) decrease Prepaid Insurance and increase Insurance Expense $100 c) no entry is required until year-end d) decrease Prepaid Insurance and increase Insurance Expense $1,620 e) decrease Prepaid Insurance and increase Insurance Expense $108 Question 79 (3 points) How will FFU record the bank transaction on April 30? Choose ALL that apply. a) decrease Interest Expense $6 b) decrease Interest Expense $18 c) decrease Bank Loan Payable $6 d) increase Interest Expense $18 e) increase Bank Fee Expense $12 f) decrease Bank Fee Expense $12 g) decrease Cash $18 ] h) increase Bank Loan Payable $6 i) increase Cash $18 Oj) increase Interest Expense $6 Question 80 (1 point) How will FFU record the furniture delivery on April 30? a) increase both Accounts Receivable and Service Revenue, $3,000 b) increase both Cash and Deferred Revenue, $2,000 c) no entry is needed until the second delivery is made d) increase Accounts Receivable $2,000 and Service Revenue, $3,000, and decrease Deferred Revenue $1,000 e) increase both Cash and Service Revenue, $4,000