Blaskowski Foodservices entered into the following transactions during May 2004. LO13 1. Purchased kitchen equipment for $22,000 from Wheeler Appliances on account.

2. Paid $5,000 cash for May rent on storage space.

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

4. Provided services to Bilder Construction Company for $10,000 cash.

5. Paid Southern States Power Co. $11,000 cash for energy usage in May.
6. Stockholders invested an additional $32,000 in the business.
7. Paid Wheeler Appliances for the terminals purchased in (1) above.
8. Incurred advertising expense for May of $2,000 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.