Analyze the effect of transactions on assets, liabilities, and equity. Hayes Computer Timeshare Company entered into the following transactions during May 2017. 1 . Purchased office equipment for $10,000 from Office Outfitters on account. 2 . Paid $3,000 cash for May rent on storage space. 3 . Received $12,000 cash from customers for contracts billed in April. Instructions Indicate with the appropriate letter whether each of the transactions above results in: (a) An increase in assets and a decrease in assets. (b) An increase in assets and an increase in equity. (c) An increase in assets and an increase in liabilities. (d) A decrease in assets and a decrease in equity. (c) A decrease in assets and a decrease in liabilities. (f) An increase in liabilities and a decrease in equity.
Analyze the effect of transactions on assets, liabilities, and equity.
Hayes Computer Timeshare Company entered into the following transactions during May 2017.
1 . Purchased office equipment for $10,000 from Office Outfitters on account.
2 . Paid $3,000 cash for May rent on storage space.
3 . Received $12,000 cash from customers for contracts billed in April.
Instructions
Indicate with the appropriate letter whether each of the transactions above results in:
(a) An increase in assets and a decrease in assets.
(b) An increase in assets and an increase in equity.
(c) An increase in assets and an increase in liabilities.
(d) A decrease in assets and a decrease in equity.
(c) A decrease in assets and a decrease in liabilities.
(f) An increase in liabilities and a decrease in equity.
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