Hayes Computer Timeshare Company entered into the following transactions during May 2017. 1. Performed services for Bayliss Construction Company for $4,000 cash. 2. Paid Southern Power Co. $10,000 cash for energy usage in May. 3. Shareholders invested an additional $30,000 in the business.
Analyze the effect of transactions on assets, liabilities, and equity.
Hayes Computer Timeshare Company entered into the following transactions during May 2017.
1. Performed services for Bayliss Construction Company for $4,000 cash.
2. Paid Southern Power Co. $10,000 cash for energy usage in May.
3. Shareholders invested an additional $30,000 in the business.
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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