Sonne Computer Timeshare Company entered into the following transactions during May 2023.

1. Purchased equipment for $15,000 from Office Interiors on account. payable

2. Paid $3,000 cash for May rent expense on storage space.

3. Received $12,000 cash from customers for Accounts Receivable already earned in April.

4. Earned service Revenue from Sharpe Construction Company for $4,000 cash.

5. Paid Western Power Co. $10,000 cash for energy Expense usage in May.

6. Investors invest $30,000 Cash in the Business for Common Stock

7. Paid in Cash Office Interiors $15,000 for the equipment purchased in (1) above.

Instructions

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

(1) 1 Asset Up = Debit & 1 Asset Down = Credit

(2) 1 Asset Up = Debit & 1 Liability Up = Credit

(3) 1 Asset Up = Debit & Stockholders Equity Up = Credit (Either Stock is issued for money or Revenue is earned)

(4) 1 Asset Down = Credit & 1 Liability Down = Debit

(5) 1 Asset Down = Credit & Stockholders Equity Down = Debit (Either the Company pays an Expense or the Corporation pays a DIVIDEND

(6) 1 Liability Up=Credit & 1 Stockholders Equity Down = Debit (Unpaid Expense Up)

(7) 1 Liability Down = Debit & 1 Stockholders Equity Up = Credit (Transfer Debt for an Ownership Interest)