The Cat Lady is a new business you started this year. When your customers are on vacation, you visit their homes and see that their cats are fed and healthy, and you play with them and clean their litter boxes.

You use your own car to get to customers' homes and your own cell phone to speak to your customers.

Your first months' transactions are listed below.

01-Oct	You set up a business bank account and get a business credit card. The bank will charge a fee of $10 at the end of each month.
02-Oct	You deposit $2,000 of your own money into the business bank account to start the business.
03-Oct	You borrow $1,000 from the bank.
04-Oct	You register your business name for $60 with Service Ontario, using the business credit card.
06-Oct	You purchase, using the business credit card, ten cat toys for $200 plus HST. You expect the toys to last more than a year.
07-Oct	You purchase, using the business credit card, 20 kilograms of kitty litter for $400 plus HST.
08-Oct	You buy a one-year liability insurance policy for $1,500, plus 8% tax, paying cash.
10-Oct	You purchase for $200 cash, plus HST, flyers to advertise your business. None of the flyers have been delivered yet.
11-Oct	You pay a student $50 cash to deliver all your flyers to the homes in your area.
12-Oct	You visited your first cat on the Thanksgiving weekend. Because this is your first customer you provide your services for free instead of charging her your usual $40 fee!
15-Oct	Two more customers hire you for the upcoming Christmas holidays. They EACH pay you $20 now to reserve your services.
27-Oct	Business is purring! You have provided services to 30 customers and collected $1,200 in cash.
28-Oct	You now have only 5 kilograms of kitty litter left. All the remainder has been used.
29-Oct	You spent $156 from your personal funds in car expenses this month. One-third of this was business travel and the business pays you cash from the business bank account.
30-Oct	You received your cell phone bill for the month of October. Of the $88, half were business calls. The company will reimburse you the amount owed next month.
31-Oct	You have used up 1 month of insurance coverage.
31-Oct	The bank takes its monthly charge from the business bank account, plus an additional $5 for interest on your loan.
31-Oct	You visited your first customer's black cat on Halloween. The customer will pay you the $40 in November.
31-Oct	You pay the entire balance owing on the business credit card.

Record the transactions into the expanded accounting equation using account names. Use that information to answer all of the following questions.

Question 50 (1 point)

How will Cat Lady record the October 1 transaction?

Question 50 options:

a)	decrease Cash and increase Bank Loan Payable, $10

b)	decrease Cash and increase Accounts Payable, $10

c)	no entry is needed

d)	decrease Cash and increase Bank Charges, $10

e)	increase both Cash and Owner's Capital, $10

Question 51 (1 point)

How will Cat Lady record the October 2 transaction?

Question 51 options:

a)	increase both Cash and Owner's Capital, $2,000

b)	increase both Cash and Revenue, $2,000

c)	increase both Cash and Accounts Payable, $2,000

d)	increase both Cash and Bank Loan Payable, $2,000

e)	increase both Cash and Retained Earnings, $2,000

Question 52 (1 point)

How will Cat Lady record the October 3 transaction?

Question 52 options:

a)	increase both Cash and Retained Earnings, $1,000

b)	increase both Cash and Bank Loan Payable, $1,000

c)	increase both Cash and Owner's Capital, $1,000

d)	increase both Cash and Revenue, $1,000

e)	increase both Cash and Accounts Payable, $1,000

Question 53 (1 point)

How will Cat Lady record the October 4 transaction?

Question 53 options:

a)	Increase Office Expenses and decrease Cash, $60

b)	No entry because a business name is intangible.

c)	Increase Business Licence and decrease Cash, $60

d)	Increase both Business Licence and Accounts Payable, $60

e)	Increase Accounts Payable and decrease Cash, $60

Question 54 (1 point)

How will Cat Lady classify the cat toys purchased on October 6 on the balance sheet?

Question 54 options:

a)	deferred revenue

b)

expense

c)	prepaid advertising

d)

equipment

e)

supplies

Question 55 (1 point)

How will Cat Lady record the October 7 transaction?

Question 55 options:

a)	Increase both Equipment and Accounts Payable, $452

b)	Increase both Supplies Expense and Accounts Payable, $452

c)	Increase both Supplies Expense and Accounts Payable, $400

d)	Increase both Supplies and Accounts Payable, $400

e)	Increase both Supplies and Accounts Payable, $452

Question 56 (1 point)

How will Cat Lady record the October 8 transaction?

Question 56 options:

a)	Increase both Insurance Expense and Accounts Payable, $1,620

b)	Increase Prepaid Insurance and decrease Cash, $1,620

c)	Increase both Prepaid Insurance and Accounts Payable, $1,620

d)	Increase Prepaid Insurance and decrease Cash, $1,500

e)	Increase Insurance Expense and decrease Cash, $1,620

Question 57 (1 point)

How will Cat Lady record the October 10 transaction?

Question 57 options:

a)	Increase both Prepaid Advertising and Accounts Payable, $226

b)	Increase Prepaid Advertising and decrease Cash, $226

c)	Increase both Advertising Expense and Accounts Payable, $226

d)	Increase Advertising Expense and decrease Cash, $226

e)	Increase Prepaid Advertising and decrease Cash, $200

Question 58 (4 points)

How will Cat Lady record the October 11 transaction?

Choose ALL that apply.

Question 58 options:

a)	decrease Cash $276

b)	increase Cash $276

c)	increase Advertising Expense $226

d)	decrease Cash $50

e)	increase Cash $50

f)	increase Wages Expense $50

g)	decrease Wages Expense $50

h)	increase Prepaid Advertising $226

i)	decrease Advertising Expense $226

j)	decrease Prepaid Advertising $226

Question 59 (1 point)

How will Cat Lady record the October 12 transaction?

Question 59 options:

	no entry is needed
	increase both Cash and Service Revenue, $40
	increase both Cash and Deferred Revenue, $40
	increase both Accounts Receivable and Service Revenue, $40
	increase both Accounts Receivable and Deferred Revenue, $40