Exercise 1-7 Falske Computer Timeshare Company entered into the following transactions during May 2017 Describe the effect of each transaction on assets, liabilities, and owner's equity. 1. Purchased computers for $20,000 from Digital Equipment on account. An increase in assets and a decrease in assets An increase in assets and an increase in owner's equity An increase in assets and an increase in liabilities A decrease in assets and a decrease in owner's equity A decrease in assets and a decrease in liabilities An increase in liabilities and a decrease in owner's equity An increase in owner's equity and a decrease in liabilities 2. Paid $4,000 cash for May rent on storage space. 3. Received $17,000 cash from customers for contracts billed in April. 4. Performed computer services to Viking Construction Company for $4,000 cash. 5. Paid Tri-State Power Co. $11,000 cash for energy usage in May. 6. Falske invested an additional $29,000 in the business. 7. Paid Digital Equipment for the computers purchased in (1) above. 8. Incurred advertising expense for May of $1,200 on account