Collins Computer Timeshare Company SA entered into the following transactions during May 2017.
1. Purchased computer terminals for R$20,000 from Digital Equipment on account.
2. Paid R$3,000 cash for May rent on storage space.
3. Received R$14,000 cash from customers for contracts billed in April.
4. Performed computer services for Schmidt Construction Company for R$2,400 cash.
5. Paid Central States Power Co. R$11,000 cash for energy usage in May.
6. Shareholders invested an additional R$32,000 in the business.
7. Paid Digital Equipment for the terminals purchased in (1) above.
8. Incurred advertising expense for May of R$1,100 on account.
Instructions
Indicate with the appropriate letter whether each of the transactions above results in:
(a) An increase in assets and a decrease in assets.
(b) An increase in assets and an increase in equity.
(c) An increase in assets and an increase in liabilities.
(d) A decrease in assets and a decrease in equity.
(e) A decrease in assets and a decrease in liabilities.
(f) An increase in liabilities and a decrease in equity.
(g) An increase in equity and a decrease in liabilities.