Question: Salvo Delivery Service had the following selected transactions during February:
1. Received cash from issuance of capital stock, $35,000.
2. Received cash for providing delivery services, $15,000.
3. Paid creditors, $1,800.
4. Billed customers for delivery services, $11,250.
5. Paid advertising expense, $750.
6. Purchased supplies for cash, $800.
7. Paid rent for February, $2,000.
8. Received cash from customers on account, $6,740.
9. Determined that the cost of supplies on hand was $135; therefore, $665 of supplies had been used during the month.
10. Paid dividends, $1,000.
Indicate the effect of each transaction on the accounting equation by listing the numbers identifying the transactions, (1) through (10), in a vertical column, and inserting at the right of each number the appropriate letter from the following list:
a. Increase in an asset, decrease in another asset.
b. Increase in an asset, increase in a liability.
c. Increase in an asset, increase in stockholders' equity.
d. Decrease in an asset, decrease in a liability.
e. Decrease in an asset, decrease in stockholders' equity