Wunderkind Photography entered into the following transactions during February 2022.

1. Stockholders invested $5,000 in the business.
2. Bought photography equipment for a cash payment of $1,000.
3. Bought more photography equipment by signing a $500 note payable.
4. Performed photography services for $400 cash.
5. Performed photography services, and billed the customer $900 on account.
6. Collected $900 from the customer in transaction 5.
7. Paid for February developing and printing, $150.
8. Advertised the business in the Platteville Journal. The $100 cost will be billed to Wunderkind.
9. Paid the advertising bill from transaction 8.
10. Paid $200 for photography supplies.
11. Received $300 cash advance payment from a customer for a photography job to be performed in April.
12. Paid $250 dividend to the stockholders.

Instructions:

1. Indicate whether each transaction increases or decreases assets, liabilities, or stockholders equity. As an example, item one would be: increase assets and increase stockholders equity.
2. Ignoring dollar amounts, explain what transactions 4 and 5 have in common, and how they differ.
3. Ignoring dollar amounts, explain what transactions 7 and 8 have in common, and how they differ.
4. Ignoring dollar amounts, explain what transactions 4 and 11 have in common, and how they differ.