E1.7 (LO 4) Collins Computer Timeshare entered into the following transactions during May 2020.

1. Purchased computers for R$20,000 from Digital Equipment on account.

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

3. Received R$17,000 cash from customers for contracts billed in April.

4. Performed computer services for Viking Construction for R$4,000 cash.

5. Paid Tri-State Power R$11,000 cash for energy usage in May.

6. Shareholders invested an additional R$29,000 in the business in exchange for ordinary shares.

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

8. Incurred advertising expense for May of R$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

b. An increase in assets and an increase

c. An increase in assets and an increase

d. A decrease in assets and a decrease in equity.

e. A decrease in assets and a decrease in assets.

f. An increase in liabilities and a decrease in equity.

g. An increase in equity and a decrease in liabilities.