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Keystone Computer Timeshare Company entered into the following transactions during May 2022. Describe the effect of each transaction on assets, liabilities, and stockholders' equity.
Keystone Computer Timeshare Company entered into the following transactions during May 2022. Describe the effect of each transaction on assets, liabilities, and stockholders' equity. 1. Purchased computers for $20,000 from Data Equipment on account. 2 Paid $3,000 cash for May rent on storage space. 3. Received $15,000 cash from customers for contracts billed in April. 4. Performed computer services for Ryan Construction Company for $2,700 cash. 5. Paid Midland Power Co. $11,000 cash for energy usage in May. Stockholders invested an additional $32,000 in the business. 6. 7. Paid Data Equipment for the computers purchased in (1) above. 8. Incurred advertising expense for May of $840 on account. An increase in assets and a decrease in assets. An increase in assets and an increase in stockholders' equity. A decrease in assets and a decrease in liabilities. An increase in liabilities and a decrease in stockholders' equity. An increase in assets and an increase in liabilities. An increase in stockholders' equity and a decrease in liabilities. A decrease in assets and a decrease in stockholders' equity.
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