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1. Purchased computers for $20,000 from Data Equipment on account. Select an effect 2. Paid $3,000 cash for May rent on storage space. Select an effect 3. Received $15,000 cash from customers for contracts billed in April. Select an effect 4. Performed computer services for Ryan Construction Company for $2,700 cash. Select an effect 5. Paid Midland Power Co. $11,000 cash for energy usage in May. Select an effect 6. Stockholders invested an additional $32,000 in the business. Select an effect 7. Paid Data Equipment for the computers purchased in (1) above. Select an effect 8. Incurred advertising expense for May of $840 on account.
1. Purchased computers for $20,000 from Data Equipment on account. Select an effect 2. Paid $3,000 cash for May rent on storage space. Select an effect 3. Received $15,000 cash from customers for contracts billed in April. Select an effect 4. Performed computer services for Ryan Construction Company for $2,700 cash. Select an effect 5. Paid Midland Power Co. $11,000 cash for energy usage in May. Select an effect 6. Stockholders invested an additional $32,000 in the business. Select an effect 7. Paid Data Equipment for the computers purchased in (1) above. Select an effect 8. Incurred advertising expense for May of $840 on account.
Answer:The question is not complete.Here is the complete question:Keystone Computer Timeshare Company entered into the following transactions during May 2017.Describe the effect of each transaction on assets, liabilities, and stockholders' equity.1. Purchased computers for $20,000 from Data Equipment on account. Select an effect2. Paid $3,000 cash for May rent on storage space. Select an effect3. Received $15,000 cash from customers for contracts billed in April. Select an effect4. Performed computer services for Ryan Construction Company for $2,700 cash. Select an effect5. Paid Midland Power Co. $11,000 cash for energy usage in May. Select an effect6. Stockholders invested an additional $32,000 in the business. Select an effect7. Paid Data Equipment for the computers purchased in (1) above.Select an effect8. Incurred advertising expense for May of $840 on account.Here is the answer:Transaction Effect on asset, liabilities and equity1 Increase in asset(computer account) by $20,000and increase in liabilities (account payable) by$20,0002 Decrease in asset(cash account) by $3,000 anddecrease in equity (rent expense account) by$3,0003. Increase in asset (cash account) by $15,000 and decrease inasset (account receivable) by $15,000. Net effect is zero.4. Increase in asset (cash account) by $2,700 and increase inequity (service revenue account) by $2,7005. Decrease in asset (cash account) by $11,000 and decrease inequity (Energy expense account) by $11,0006. Increase in asset (cash account) by $32,000 and increase inequity (common stock account) by $32,0007. Decrease in asset (cash account) by $20,000 and decrease inliabilities (account payable) by $20,0008. Increase in liabilities (accrued advertising expense) by $840decrease in equity (advertising expense account) by $840Explanation:Assets are economic resources of the firm in which future economic benefits are expected to flow to the entity. Liabilities are the entity`s financial obligation to those who are not the owners of the business. Equity is the residual value after deducting am entity`s assets from its liabilities.With this background, business transactions and events are recorded either as increase or decrease in asset, liabilities and equity....