Selected transactions for Golden Apples Catering Company are listed below.
1. Made cash investment to start business.
2. Paid monthly electricity bill.
3. Purchased food on account.
4. Received cash from customers.
5. Paid dividends.
6. Paid weekly wages.
7. Paid for food purchased in transaction (3).
8. Purchased additional kitchen equipment on account.
9. Paid rent for the month.
List the numbers of the preceding transactions and describe the effect of each transaction on assets, liabilities, and stockholders’ equity. For example, the first answer is: (1) Increase in assets and increase in stockholders’ equity.