the following selected transactions were completed by reuben s delivery service duri 539331

Transactions

The following selected transactions were completed by Reuben’s Delivery Service during October:

1. Received cash from owner in exchange for capital stock, $20,000.

2. Purchased supplies for cash, $900.

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

4. Paid advertising expense, $2,500.

5. Received cash for providing delivery services, $23,100.

6. Billed customers for delivery services on account, $41,750.

7. Paid creditors on account, $4,500.

8. Received cash from customers on account, $36,200.

9. Determined that the cost of supplies on hand was $175 and $725 of supplies had been used during the month.

10. Paid dividends, $1,000.

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 stockholders’ equity.

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

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