Quality Auto Detailing is your own business. You clean and touch up your customers' cars.

You work from a rented garage and your customers bring their cars to you, and pick them up. You use your own cell phone to take reservations with customers.

Your first months' transactions are listed below.

March 1	You set up a bank account and acquire a business credit card. The bank will charge you a fee of $20 at the end of each month.
March 2	You borrow $3,000 from the bank.
March 3	You deposit $4,000 of your own money into the business bank account.
March 4	You rent a garage for the next six months for $500 per month, paying the full amount now.
March 5	You register your business name for $60 with Service Ontario, using the business credit card.
March 6	You purchase with your business credit card supplies (i.e. wax, touch-up paint) for $400 plus HST.
March 7	You purchase with your business credit card $2,000 worth of power tools from Home Depot. HST is included.
March 8	You buy a one-year liability insurance policy for $2,400, plus 8% tax, paying cash.
March 10	You purchase for $300 cash, plus HST, 150 colour flyers to advertise your business. You haven't used any yet.
March 11	You pay a student $80 cash to distribute 100 of your flyers.
March 12	You detailed one car for a customer for free, to see if he liked it and would recommend you to his friends. You would normally have charged him $100.
March 15	Two more customers hire you to detail their cars. You will charge them each $300, and they each give you a deposit of $100.
March 27	Business is booming! You have so far collected $2,200 in cash from happy car owners.
March 28	You now have only $150 worth of supplies left.
March 31	One month's rent on your garage has expired.
March 31	You received your cell phone bill for the month. Of the $88, three-quarters (i.e. 75%) was business calls. You will pay it next month.
March 31	One month of your insurance policy has expired.
March 31	The bank takes its monthly charge from your account, plus an additional $10 for interest on your loan.
March 31	You deliver the beautiful car back to one of the March 15 customers. He will pay you his balance next week.
March 31	You pay half of the balance owing on your business credit card. You will pay the rest next week.

Question 73 (1 point)

How will QAD classify the items purchased on March 7?

Question 73 options:

a)

supplies

b)

equipment

c)	prepaid advertising

d)

expense

e)	deferred revenue

Question 74 (1 point)

How will QAD record the March 8 transaction?

Question 74 options:

a)	Increase both Insurance Expense and Accounts Payable, $2,592

b)	Increase both Prepaid Insurance and Accounts Payable, $2,592

c)	Increase Prepaid Insurance and decrease Cash, $2,400

d)	Increase Insurance Expense and decrease Cash, $2,592

e)	Increase Prepaid Insurance and decrease Cash, $2,592

Question 75 (1 point)

How will QAD record the March 10 transaction?

Question 75 options:

a)	Increase Prepaid Advertising and decrease Cash, $300

b)	Increase Advertising Expense and decrease Cash, $339

c)	Increase both Advertising Expense and Accounts Payable, $339

d)	Increase Prepaid Advertising and decrease Cash, $339

e)	Increase both Prepaid Advertising and Accounts Payable, $339

Question 76 (4 points)

How will QAD record the March 11 transaction?

Choose ALL that apply.

Question 76 options:

a)	decrease Cash $306

b)	decrease Cash $80

c)	increase Cash $80

d)	increase Prepaid Advertising $226

e)	decrease Wages Expense $80

f)	increase Advertising Expense $226

g)	increase Wages Expense $80

h)	decrease Advertising Expense $226

i)	decrease Prepaid Advertising $226

j)	increase Cash $306

Question 77 (1 point)

How will QAD record the March 12 transaction?

Question 77 options:

a)	no entry is needed

b)	increase both Accounts Receivable and Service Revenue, $100

c)	increase both Cash and Deferred Revenue, $100

d)	increase both Cash and Service Revenue, $100

e)	increase both Accounts Receivable and Deferred Revenue, $100