fill second pic(there should be 10 transaction square in second pic)

- Notes: - " Prepaid rent is a "contra account." It is a contra asset account. Because the rent has been prepaid, there is a cash flow. However, the rent expense has not yet been accrued. Therefore, the cash in effect sits in this asset account until later when the rent expense is accrued. (Ch 3 Topic) - Ax When a company earns money for selling its product or for providing services it is called "revenue" or "sales revenue." Revenue is a component of Net Income, which becomes a component of Retained Earnings. (Net Income equals Revenue minus Expenses.) Therefore, revenue affects Owner Equity. - A^^Receiving payment from a customer in advance for a service not yet performed is called "deferred revenue. Even though the term revenue appears in the account title for deferred revenue, this is NOT a revenue account. Deferred indicates that the company has yet to provide services even though it has collected the customer's cash. The company owes the customer a service, which creates a liability. Part 2: Now that you've analyzed the effect of each of the transactions on the Accounting Equation, show the journal entry for each of the 10 transactions