Part A (8 marks) Listed below are some accounting terms introduced during various lectures: Marching principle Double entry Accounting cycle Debit Credit Going concern Trial balance Journal Audit Required: Each of the following statements may or may not) describe one of the above terms. In the answer booklet, indicate the accounting term described, or answer "None" if the statement does not accurately describe any of the above terms. 1. The accounting record in which transactions are initially recorded. 2. A schedule prepared to determine the equality of the debit and credit amounts in the ledger. 3. An amount entered in the right side of a ledger account. 4. The sequence of procedures involved in recording transactions, processing the information in the accounting system, and summarizing the information in the form of financial statements. 5. The system of accounting in which every business transaction is recorded by equal dollar amounts of debit and credit entries. 6. An investigation of financial statements designed to determine their fairness in relation to generally accepted accounting principles. 7. The assumption that in the absence of information to the contrary, the business entity is assumed to continue operations in the foreseeable future. 8. The concept that revenue and the associated expenses are recorded in the same accounting period, regardless of when cash is received or paid. (8 marks) Part B (12 marks) The following transactions relates to Festive Parties, Inc for June: June 2 Collected an account receivable of $860 from a customer, East, Inc. 5 Issued a check for $430 in full payment of an account payable to North, Inc. 9 Borrowed $12,000 cash from the bank by signing a 120-day note payable. 12 Issued an additional 3,000 shares of capital stock in exchange for $45,000 cash. 15 Purchased equipment for the business. The price was $13,000, of which $3,000 was paid in cash; a note payable was issued for the balance 21 Acquired office furniture from West Company for $1,100, on account. Required: Prepare journal entries to record the above transactions. (12 marks)