Transactions Obj. 4 Arrowhead Delivery Service is owned and operated by Gates Deeter. The following selected transactions were completed by Arrowhead Delivery during August:

1 Received cash in exchange for common stock, $25,000.

2 Paid creditors on account, $3,750.

3 Billed customers for delivery services on account, $22,400.

4 Received cash from customers on account, $11,300.

5 Paid dividends, $6,000.

Indicate the effect of each transaction on the following accounting equation elements: Assets, Liabilities, Common Stock, Dividends, Revenue, and Expense. To illustrate, the answer to (1) follows:

(1) Asset (Cash) increases by $25,000;

Common Stock increases by $25,000.

AppendixLO1