W. S. Blaskowski Foodservices entered into the following transactions during May 2008.
1. Purchased kitchen equipment for $30,000 from General Appliances on account.
2. Paid $3,000 cash for May rent.
3. Received $5,000 cash from customers for services billed in April.
4. Provided services to the Osborne’ 50th wedding anniversary.
5. Paid World Web Services $5,000 cash for advertising in May.
6. Stockholders invested an additional $50,000 in the business.
7. Paid General Appliances for the equipment purchased in transaction (1).
8. Incurred consulting expense for May of $2,000 on account.
Instructions
Indicate with the appropriate letter whether each of the preceding transactions results in
(a) an increase in assets and a decrease in assets.
(b) an increase in assets and an increase in stockholders’ equity.
(c) an increase in assets and an increase in liabilities.
(d) a decrease in assets and a decrease in stockholders’ equity.
(e) a decrease in assets and a decrease in liabilities.
(f) an increase in liabilities and a decrease in stockholders’ equity.
(g) an increase in stockholders’ equity and a decrease in liabilities.