The selected transactions below were completed by Cota Delivery Service during July:
Indicate the effect of each transaction on the accounting equation by choosing the appropriate letter from the following list:
- Increase in anasset, decrease in another asset.
- Increase in an asset, increase in aliability.
- Increase in an asset, increase instockholders' equity.
- Decrease in an asset, decrease in a liability.
- Decrease in an asset, decrease in stockholders' equity.
1. Received cash in exchange for common stock, $35,000.
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 from 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, $2,500.