This week you are required to complete $3$ problems: Problems $1\mathrm{.}1,1\mathrm{.}2,$ and $1\mathrm{.}3.$ You are provided a template to use for problem $1\mathrm{.}3$; for problems $1\mathrm{.}1$ and $1\mathrm{.}2,$ compose your answers using Microsoft Word or Excel.

Unit $1$: Problem $1\mathrm{.}1($Effects on the Accounting Equation$)$

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The following selected transactions were completed by Silverado Delivery Service during February:

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$1.$ Received cash from the owner as an additional investment, $$25,000.$

$2.$ Purchased supplies for cash, $$750.$

$3.$ Paid rent for February, $$3,000.$

$4.$ Paid advertising expense, $$1,500.$

$5.$ Received cash for providing delivery services, $$16,800.$

$6.$ Billed customers for delivery services on account, $$32,500.$

$7.$ Paid creditors on account, $$1,400.$

$8.$ Received cash from customers on account, $$23,770.$

$9.$ Determined that the cost of supplies on hand was $$275$ and $$475$ of supplies had been used during the month.

$10.$ Paid cash to the owner for personal use, $$5,000.$

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INSTRUCTIONS

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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:

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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 owner$$s equity.

d$.$ Decrease in an asset, decrease in a liability.

e$.$ Decrease in an asset, decrease in owner$$s equity.

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Please use MS Excel or MS Word to create your file.

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Problem $1\mathrm{.}2($Transactions$)$

Amy Austin established an insurance agency on March $1$ of the current year and completed the following transactions during March:

Opened a business bank account with a deposit of $$50,000$ from personal funds.

Purchased supplies on account, $$4,000.$

Paid creditors on account, $$2,300.$

Received cash from fees earned on insurance commissions, $$13,800.$

Paid rent on office and equipment for the month, $$5,000.$

Paid automobile expenses for the month, $$1,150,$ and miscellaneous expenses, $$300.$

Paid office salaries, $$2,500.$

Determined that the cost of supplies on hand was $$2,700$; therefore, the cost of supplies used was $$1,300.$

Billed insurance companies for sales commissions earned, $$12,500.$

Withdrew cash for personal use, $$3,900.$