The following selected transactions were completed by Reuben's Delivery Service during October:
1. Received cash from owner in exchange for capital stock, $20,000.
2. Purchased supplies for cash, $900.
3. Paid rent for October, $3,000.
4. Paid advertising expense, $2,500.
5. Received cash for providing delivery services, $23,100.
6. Billed customers for delivery services on account, $41,750.
7. Paid creditors on account, $4,500.
8. Received cash from customers on account, $36,200.
9. Determined that the cost of supplies on hand was $175 and $725 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 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.

  • CreatedFebruary 28, 2014
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