Indicate with the appropriate letter whether each of the transactions below resu
ID: 2378978 • Letter: I
Question
Indicate with the appropriate letter whether each of the transactions below result in:
(a) an increase in assets and a decrease in assets. (b) an increase in assets and an increase in owner's equity. (c) an increase in assets and an increase in liabilities. (d) a decrease in assets and a decrease in owner's equity. (e) a decrease in assets and a decrease in liabilities. (f) an increase in liabilities and a decrease in owner's equity. (g) an increase in owner's equity and a decrease in liabilities. Indicate with the appropriate letter whether each of the transactions below result in:Explanation / Answer
1. Purchased computer terminals for $20,000 from Digital Equipment on account. c
2. Paid $4,000 cash for May rent on storage space. d
3. Received $15,000 cash from customers for contracts billed in April. a
4. Provided computer services to Fisher Construction Company for $3,000 cash. b
5. Paid Northern States Power Co. $11,000 cash for energy usage in May. d
6. Brandon invested an additional $32,000 in the business. b
7. Paid Digital Equipment for the terminals purchased in (1) above. e
8. Incurred advertising expense for May of $1,200 on account. f