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Keystone Computer Timeshare Company entered into the following transactions during May 2022. Describe the effect of each transaction on assets, liabilities, and stockholders' equity. 1. Purchased computers for $20,000 from Data Equipment on account. 2. Paid $3,000 cash for May rent on storage space. 3. Received $15,000 cash from customers for contracts billed in April. Performed computer services for Ryan Construction Company for $2,700 cash. Increase in assets, increase in liabilities Increase in assets, increase in stockholders' equity Increase in assets, decrease in liabilities Increase in assets, decrease in stockholders' equity Increase in assets, decrease in assets Increase in liabilities, increase in stockholders' equity Increase in liabilities, decrease in liabilities Increase in liabilities, decrease in stockholders' equity Increase in liabilities, decrease in assets Increase in stockholders' equity, decrease in assets Increase in stockholders' equity, decrease in liabilities Increase in stockholders' equity, decrease in stockholders' equity Decrease in assets, decrease in liabilities Decrease in assets, decrease in stockholders' equity Decrease in liabilities, decrease in stockholders' equity 5. Paid Midland Power Co. $11,000 cash for energy usage in May. 6. Stockholders invested an additional $32,000 in the business. 7. Paid Data Equipment for the computers purchased in (1) above. 8. Incurred advertising expense for May of $840 on account.
Keystone Computer Timeshare Company entered into the following transactions during May 2022. Describe the effect of each transaction on assets, liabilities, and stockholders' equity. 1. Purchased computers for $20,000 from Data Equipment on account. 2. Paid $3,000 cash for May rent on storage space. 3. Received $15,000 cash from customers for contracts billed in April. Performed computer services for Ryan Construction Company for $2,700 cash. Increase in assets, increase in liabilities Increase in assets, increase in stockholders' equity Increase in assets, decrease in liabilities Increase in assets, decrease in stockholders' equity Increase in assets, decrease in assets Increase in liabilities, increase in stockholders' equity Increase in liabilities, decrease in liabilities Increase in liabilities, decrease in stockholders' equity Increase in liabilities, decrease in assets Increase in stockholders' equity, decrease in assets Increase in stockholders' equity, decrease in liabilities Increase in stockholders' equity, decrease in stockholders' equity Decrease in assets, decrease in liabilities Decrease in assets, decrease in stockholders' equity Decrease in liabilities, decrease in stockholders' equity 5. Paid Midland Power Co. $11,000 cash for energy usage in May. 6. Stockholders invested an additional $32,000 in the business. 7. Paid Data Equipment for the computers purchased in (1) above. 8. Incurred advertising expense for May of $840 on account.
1. An growth in liabilities andassets. 2. A decline in both assets and liabilities. 3. Asset growth and shareholder equity growth. 4. Not specified. 5. Asset decline andshareholderequity decline.6. Asset growth andshareholderequity growth. 7. decreasing both assets and liabilities. 8. An rise in costs and obligations. Computers are acquired for $20,000 onaccount, increasing assets and liabilities (accounts payable).Renting for $3,000 in cash reducesassets(cash).Both the $15,000 in client payments and the $2,700 in computer work for Ryan Construction Company enhance assets (cash).Assets decline after paying $11,000 in cash for energy use in May. (cash).The equity of theinvestorsrises as a result of their additional $32,000 investment in the company.Accounting for the machines acquired in (1) and paying Data Equipment reduces liabilities (accounts due) and assets (cash).The $840 in account-based advertising expenses for May raise liabilities (accounts due) and reduce shareholder equity.learn more aboutassetshere:brainly.com/question/14404094#SPJ4...