Received payment in advance for services that would be provided at a later Provided service to a client on account, $3,900. Collected $1,250 of the outstanding accounts receivable. roblem 2-2 Ested below is the business activity of the Katherine Smith Advisory Service entity. Katherine Smith, the owner, deposited $50,000 in the business account. b. Paid 5 months' rent, $10,000 Purchased a one year insurance policy, $1,800 d. Paid employees, $2,000 Provided service to a client and collected $2,500. f. ed J C. date, $2,500. Purchased office supplies on account, $450. h. i. Paid the outstanding account payable, $450. 3 4 34 Determine if each activity is a transaction. List the accounts that were affected by each transaction and determine if Chapter Two Recording Required 8. b. they were increased or decreased. Use the following account titles: Accounts Payable Unearned Service Revenue K. Smith, Capital Service Revenue Salaries Expense Cash Accounts Receivable Office Supplies Prepaid insurance Prepaid Rent Use the account titles in requirement b to prepare journal entries for the transactions Open t-accounts for each account listed in requirement b. Transfer the transaction data from the journal to the t-accounts. c. d