Presented here are nine transactions and the analysis used to account for them. Evaluate each of the suggested accounting treatments and indicate whether it is true or false.

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1. Received cash of $38,000 from the stockholders, who bought stock in the business. Answer: Increase asset, increase stockholders' equity.. 2. Paid $450 cash to purchase supplies. True False Answer: Increase asset, increase stockholders' equity.. True False 3. Earned service revenue on account, $500. Answer. Increase asset, increase retained earnings. True False 4. Purchased office furniture on account at a cost of $850. Answer: Increase asset, increase liability.. True False 5. Received cash on account, $1,400. Answer: Increase asset, decrease asset. True False 6. Paid cash on account, $675. Answer: Increase asset, increase liability.. True False 7. Sold land for $38,000, which was the cost of the land. Answer: Increase asset, decrease asset. True False