In questions 1 and 2, indicate how each event affects the elements of financial statements. Use the following letters to record your answer in the box shown below each element. You do not need to enter amounts. Every box requires either an I, a Dor an N. Increase = 1 Decrease =D No Effect=N 1. A transaction recorded as a debit to Accounts Receivable and a credit to Revenue. Assets Liabilities Equity Revenues Expenses Cash Net Income 2. An adjusting entry recorded as a debit to Rent Expense and a credit to Prepaid Rent. Assets Liabilities Equity Revenues Expenses Cash Net Income 3. The right side of a T-account is known as the A. Credit side. B. Claims side. C. Debit side. D. Equity side 4. The difference between the debit and credit sides of a T-account is known as the A. Net income. B. Trial balance. C. Equality D. Account balance