Transaction type and debit/credit terminology Problem 3-26B The following events apply to Un Enterprises: 1. Acquired $30,000 cash from the issue of common stock. 2. Recognized $28,000 of service revenue on account. 3. Paid cash to rent office space for the next 12 months: $7,800 4. Paid cash of $9,200 for operating expenses. 5. Collected $9,000 cash for services to be performed in the future. 6. Paid salaries to employees: $8,000 cash. 7. Paid cash for utilities expense: $1,200. 8. Paid on accounts payable: $1,200 9. Paid a $5,000 cash dividend to the stockholders. 10. Purchased $2,000 of supplies on account. 11. Received $18,000 cash for services rendered. 12. Recognized $3,250 of rent expense related to cash paid in a prior transaction (see Event 3) 13. Recognized $6,000 of revenue for services performed for which cash had been previously col lected (see Event 5). 14. Recognized $4,800 of accrued salaries expense. Required Identify each event as asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE). Also identify the account to be debited and the account to be credited when the transaction is recorded. The first event is recorded as an example. of Account Account Event Event Debited No. Credited Cash Common Stock AS Recording events in the general journal and identifying their effect on financial statements Exercise 3-14B Required Record each of the following transactions in general journal form and then show the effect of the transaction in the horizontal statements model. The first transaction is shown as an example. Account Title Debit Credit Accounts Receivable 50,000 Service Revenue 50,000 Assets Llab. Equity Rev. xp. Net Inc. Cash Flow + 50,000 50,000 50,000 50,000 NA NA NA a. Performed $50,000 worth of services on account. b. Charged $2,000 on account for operating expense. c. Collected $27,000 cash on accounts receivable. d. Paid $700 on accounts payable. e. Paid $6,800 cash in advance for an insurance policy. f. Recorded the adjusting entry to recognize $4,500 of insurance expense. Received $4,000 cash for services to be performed at a later date. h. Purchased supplies for $2,400 cash