Li Wang Computer Timeshare Company entered into the following transactions during May 1996 1. Purchased computer terminals for \(\$ 19,000\) from Digital Equipment on account.

2. Paid \(\$ 4,000\) cash for May rent on storage space.

3. Received \(\$ 15,000\) cash from customers for contracts billed in April.

4. Provided computer services to Brieske Construction Company for \(\$ 3,000\) cash.

5. Paid Southern States Power Co. \(\$ 11,000\) cash for energy usage in May.

6. Stockholders' invested an additional \(\$ 32,000\) in the business.

7. Paid Digital Equipment for the terminals purchased in (1) above.

8. Incurred advertising expense for May of \(\$ 1,000\) on account.

\section*{Instructions}

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

(a) an increase in assets and a decrease in assets.

(b) an increase in assets and an increase in stockholders' equity.

(c) an increase in assets and an increase in liabilities.

(d) a decrease in assets and a decrease in stockholders' equity.

(e) a decrease in assets and a decrease in liabilities.

(f) an increase in liabilities and a decrease in stockholders' equity.
(g) an increase in stockholders' equity and a decrease in liabilities.