Answer:
1. Received cash in exchange for common stock, $35,00.
Transaction Effect: Receipt of cash will increase in asset, delivery service will increase in stockholder equity
Correct Option: c
2. Purchased supplies for cash, $1,100.
Transaction Effect: Supplies will increase in asset, cash will decrease in the asset
Correct Option: a
3. Paid rent for October, $4,500.
Transaction Effect: Paid cash will decrease in asset and rent expenses will decrease stockholder equity
Correct Option: e
4. Paid advertising expense. $900.
Transaction Effect: Rent paid will Decrease in an asset, decrease in stockholders' equity
Correct Option: e
5. Received cash for providing delivery services, $33,000.
Transaction Effect: Receipt of cash will increase in asset, delivery service will increase in stockholder equity
Correct Option: c
6. Billed customers for delivery services on account, $58,000.
Transaction Effect: Billing customers will Increase in an asset, increase in stockholders' equity
Correct Option: c
7. Paid creditors on account, $2,900.
Transaction Effect: Creditors payment will Decrease in an asset, decrease in a liability
Correct Option: d
8. Received cash for customers on account, $27,500.
Transaction Effect: Received payment from customers will Increase in an asset, decrease in another asset
Correct Option: a
9. Determined that the cost of supplies on hand was $300 and $8,600 of supplies had been used during the month.
Transaction Effect: Supplies expense will Decrease in an asset, decrease in stockholders' equity
Correct Option: a
10. Paid cash dividends, $2500.
Transaction Effect: Cash payment will decrease in asset, dividend will decrease in stockholders equity
Correct Option: e
