Speedy Delivery Service had the following selected transactions during April:

1. Received cash from issuance of capital stock, $100,000.

2. Paid rent for April, $4,200.

3. Paid advertising expense, $3,000.

4. Received cash for providing delivery services, $27,000.

5. Purchased supplies for cash, $2,500.

6. Billed customers for delivery services on account, $81,200.

7. Paid creditors on account, $8,300.

8. Received cash from customers on account, $25,600.

9. Determined that the cost of supplies on hand was $900; therefore, $1,600 of supplies had been used during the month.

10. Paid dividends, $3,000.Indicate the effect of each transaction on the accounting equation by listing the numbers identifying the transactions,

(1) through (10), in a vertical column, and inserting at the right of each number the appropriate letter from the following list:

a. Increase in an asset, decrease in another asset.

b. Increase in an asset, increase in a liability.

c. Increase in an asset, increase in stockholders equity.

d. Decrease in an asset, decrease in a liability.

e. Decrease in an asset, decrease in stockholders equity.

1. First, provide the journal entry to record EACH of the 10 transactions.

2. Second, indicate whether Each of the 10 transactions listed in would increase, decrease, or have no effect on NET INCOME.

3. Third, briefly describe in a few sentences how the matching principle applies to the recording of depreciation expense for the purchase cost of equipment with a useful life of 5 years.