Transactions Obj. 4 Interstate Delivery Service is owned and operated by Katie Wyer. The following selected transactions were completed by Interstate Delivery during May:

1 Received cash in exchange for common stock, $18,000.

2 Paid advertising expense, $4,850.

3 Purchased supplies on account, $2,100.

4 Billed customers for delivery services on account, $14,700.

5 Received cash from customers on account, $8,200.

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 $18,000; Common Stock increases by $18,000.

AppendixLO1