determined that the cost of supplies on hand was 250 therefore 1 250 of supplies had 551133

EX 1-12 Transactions

The following selected transactions were completed by Speedy Delivery Service during October:

1. Received cash from owner as additional investment, $30,000.

2. Purchased supplies for cash, $1,500.

3. Paid rent for October, $4,000.

4. Paid advertising expense, $2,500.

5. Received cash for providing delivery services, $18,750.

6. Billed customers for delivery services on account, $41,500.

7. Paid creditors on account, $6,000.

8. Received cash from customers on account, $26,200.

9. Determined that the cost of supplies on hand was $250; therefore, $1,250 of supplies had been used during the month.

10. Paid cash to owner for personal use, $2,000.

Indicate the effect of each transaction on the accounting equation by listing the numbers identifying the transactions, (1) through (10), in a 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 owner’s equity.

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

e. Decrease in an asset, decrease in owner’s equity.