E1-7 Brandon Computer Timeshare Companyentered into the following transactions during May 2008.

1. Purchased computer terminals for $20,000from Digital Equipment on account.

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

3. Received $15,000 cash from customers forcontracts billed inApril.

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

5. Paid Northern States Power Co. $11,000 cashfor energy usage in May. _____

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

7. Paid Digital Equipment for the terminalspurchased in (1)above. _____

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

Instructions

Indicate with the appropriate letter whether each of thetransactions above results in:

(a) an increase in assets and a decrease inassets.

(b) an increase in assets and an increase instockholders equity.

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

(d) a decrease in assets and a decrease instockholders equity.

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

(f) an increase in liabilities and a decreasein stockholders equity.

(g) an increase in stockholders equityand a decrease in liabilities.