Question

Keystone Computer Timeshare Company entered into the following transactions during May 2015.
1. Purchased computer terminals for $20,000 from Data Equipment on account.
2. Paid $3,000 cash for May rent on storage space.
3. Received $15,000 cash from customers for contracts billed in April.
4. Performed computer services for Ryan Construction Company for $2,700 cash.
5. Paid Midland Power Co. $11,000 cash for energy usage in May.
6. Stockholders invested an additional $32,000 in the business.
7. Paid Data Equipment for the terminals purchased in (1) above.
8. Incurred advertising expense for May of $840 on account.

Instructions
Indicate with the appropriate letter whether each of the transactions results in:
(a) An increase in assets and a decrease in assets.
(b) An increase in assets and an increase in stockholders' equity.
(c) An increase in assets and an increase in liabilities.
(d) A decrease in assets and a decrease in stockholders' equity.
(e) A decrease in assets and a decrease in liabilities.
(f) An increase in liabilities and a decrease in stockholders' equity.
(g) An increase in stockholders' equity and a decrease in liabilities.



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  • CreatedFebruary 17, 2014
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