Brandon Computer Timeshare Company entered into the following transactions during
May 2010. 1. Purchased computer terminals for $20,000 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 Fisher Construction Company for $3,000 cash. 5. Paid Northern States Power Co. $11,000 cash for energy usage in May. 6. Brandon 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 $1,200 on account. 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 owner equity. (c) An increase in assets and an increase in liabilities. (d) A decrease in assets and a decrease in owner equity. (e) A decrease in assets and a decrease in liabilities. (f) An increase in liabilities and a decrease in owner equity. (g) An increase in owner equity and a decrease in liabilities.
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