Sidhu Computer Company entered into these transactions during May 2001:

1. Purchased computer terminals for $29,000 from Digital Equipment on account.

2. Paid $4,000 cash for May rent on storage space.

3. Received $15,000 cash from customers for contracts billed in April.

4. Provided computer services to Brieske Construction Company for $3,000 cash.

5. Paid Southern States Power Co. $11,000 cash for energy usage in May.
6. Stockholders invested an additional $22,000 in the business in exchange for common stock of the company.
7. Paid Digital Equipment for the terminals purchased in (1).
8. Incurred advertising expense for May of $1,000 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 stockholders’ equity.

(c) an increase in assets and an increase in liabilities.

(d) a decrease in assets and a decrease in stockholders’ equity.

(e) a decrease in assets and a decrease in liabilities.

(f) an increase in liabilities and a decrease in stockholders’ equity.
(g) an increase in stockholders’ equity and a decrease in liabilities.