Rollins Computer Timeshare Company entered into the following transactions during May 2006.

1. Purchased computer terminals for $21,500 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 Fisher Construction Company for $3,000 cash.

5. Paid Northern States Power Co. $1 1,000 cash for energy usage in May.

6. Stockholders invested an additional $32,000 in the business.

7. Paid Digital Equipment for the terminals purchased in (1) above.

8. Incurred advertising expense for May of $1,200 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.