Reference no: EM131126251
The following selected transactions were completed by Lindbergh Delivery Service during October:
1. Received cash from owner as additional investment, $75,000.
2. Paid rent for October, $4,200.
3. Paid advertising expense, $4,000.
4. Received cash for providing delivery services, $39,750.
5. Purchased supplies for cash, $2,500.
6. Billed customers for delivery services on account, $81,200.
7. Paid creditors on account, $9,280.
8. Received cash from customers on account, $25,600.
9. Determined that the cost of supplies on hand was $900; therefore, $1,600 of supplies had been used during the month.
10. Paid cash to owner for personal use, $3,000.
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 owner's equity.
d. Decrease in an asset, decrease in a liability.
e. Decrease in an asset, decrease in owner's equity.