Question

EX 1-12 Transactions OBJ.4 The following selected transactions were completed by Silverado Delivery Service during February 1. Received cash from owner as additional investment, $25,000. 2. Purchased supplies for cash, $750. 3. Paid rent for February, $3,000. 4. Paid advertising expense, $1,500. 5. Received cash for providing delivery services, $16,800. 6. Billed customers for delivery services on account, $32,500. 7. Paid creditors on account, $1,400. 8. Received cash from customers on account, $23.770 9. Determined that the cost of supplies on hand was $275 and $475 of supplies had been used during the month. 10. Paid cash to owner for personal use, $5,000. Indicate the effect of each transaction on the accounting equation by listing the num bers 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.

Answer 1

As per policy, only one question is allowed to answer at a time, so answering Ex 1-12 here :

Ex 1-12)
Transactions	Option/Effect	Reasons:
1	c	cash increases and owner's capital raised
2	a	cash reduces and supplies asset increases
3	e	cash reduced and rent exp recorded which reduces owner's eq.
4	e	cash reduced and advertising exp recorded which reduces owner's eq.
5	c	Cash increases and revenue increases which raises the owner's eq.
6	c	AR increases and revenue increases which raises the owner's eq.
7	d	cash reduces and creditors also reduces
8	a	cash increases and AR decreases
9	e	supplies reduced and supply exp recorded which reduces owner's eq.
10	e	cash reduces, owner's capital is withdrawn