Brandon Computer Timeshare Company entered into the following transactions during May 2008.
1. Purchased computer terminals for $20,000from Digital Equipment on account.
2. Paid $4,000 cash for May rent on storagespace.
3. Received $15,000 cash from customers forcontracts billed inApril.
4. Provided computer services to FisherConstruction Company for $3,000 cash.
5. Paid Northern States Power Co. $11,000 cashfor energy usage in May. _____
6. Stockholders invested an additional $32,000in the business. _____
7. Paid Digital Equipment for the terminalspurchased in (1)above. _____
8. Incurred advertising expense for May of$1,200 onaccount. _____
Instructions:
Indicate with the appropriate letter whether each of the transactions above results in:
(a) an increase in assets and a decrease in assets.
(b) an increase in assets and an increase instockholders' equity.
(c) an increase in assets and an increase inliabilities.
(d) a decrease in assets and a decrease instockholders' equity.
(e) a decrease in assets and a decrease inliabilities.
(f) an increase in liabilities and a decreasein stockholders' equity.
(g) an increase in stockholders' equityand a decrease in liabilities.