ABC Company entered into the following transactions during May, its first month of operations: May 1: ABC Company sold common stock to owners in the amount of $200,000. May 1: ABC Company paid $36,000 cash for office rent for May, June, and July. May 3: ABC Company purchased a parcel of land costing $60,000 by paying $25,000 in cash and agreeing to pay the remainder within sixty days. May 9: ABC Company provided $32,000 of services to a customer. The customer didn't pay any cash on May 9, but agreed to pay the balance due by the end of the month. May 15: ABC Company received and paid utility bills in the amount of $14,000. May 18: ABC Company sold the land purchased on May 3 for $49,000 cash. May 21: A customer paid $20,000 cash to ABC Company for services to be provided in June and July. May 27: The customer from May 9 paid the amount owed to ABC Company. May 31: ABC Company received a $9,000 bill for advertising done during May. No payment was made at this time. Questions 1:  The journal entry made by ABC Company to record the May 15 transaction would be: 

Choose the right Answer:

A- Cash ..................................... 14,000 Utilities expense .................... 14,000

B- Utilities payable ................. 14,000 Cash ......................................... 14,000

C- Cash ..................................... 14,000 Utilities payable ..................... 14,000

D- Utilities expense ................ 14,000 Utilities payable ..................... 14,000

E- Utilities expense ................ 14,000 Cash ......................................... 14,000

F- Utilities payable ................. 14,000 Utilities expense .................... 14,000

G- no journal entry would be recorded on May 15

Questions 2:

The immediate effects on the balance sheet of the May 18 transaction would be:

Choose the right Answer:

A- assets = decrease; liabilities = decrease; equity = no effect

B- assets = increase; liabilities = no effect; equity = increase

C- assets = no effect; liabilities = no effect; equity = no effect

D- assets = decrease; liabilities = no effect; equity = no effect

E- assets = increase; liabilities = increase; equity = no effect

F- assets = no effect; liabilities = increase; equity = decrease

G- assets = decrease; liabilities = no effect; equity = decrease

H- assets = increase; liabilities = no effect; equity = no effect

J- assets = decrease; liabilities = increase; equity = decrease