Reference no: EM131032073
The following selected transactions were completed by Coat Delivery Service durning July:
1. Received cash in exchange for common stock, $35,00.
2. Purchased supplies for cash, $1,100.
3. Paid rent for October, $4,500.
4. Paid advertising expense. $900.
5. Received cash for providing delivery services, $33,000.
6. Billed customers for delivery services on account, $58,000.
7. Paid creditors on account, $2,900.
8. Received cash for customers on account, $27,500.
9. Determined that the cost of supplies on hand was $300 and $8,600 of supplies had been used during the month.
10. Paid cash dividends, $2500. Indicate the effect of each transaction on the accounting equation by listing the
numbers identifying the transactions, (1) through (10), in column, and inserting at the right of each number the appropriate letter form the following list:
a. Increase in the asset, decrease in another asset.
b. Increase in and 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.
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