Kam Computer Timeshare Company entered into the following transactions during May 2014

| March 29, 2017

Kam Computer Timeshare Company entered into the following transactions during May 2014.

Describe the effect of each transaction on assets, liabilities, and owner’s equity.

1. Purchased computer terminals for $20,000 from Digital Equipment on account. An increase in assets and a decrease in assetsAn increase in assets and an increase in owner’s equityAn increase in assets and an increase in liabilitiesA decrease in assets and a decrease in owner’s equityA decrease in assets and a decrease in liabilitiesAn increase in liabilities and a decrease in owner’s equityAn increase in owner’s equity and a decrease in liabilities
2. Paid $4,000 cash for May rent on storage space. An increase in assets and a decrease in assetsAn increase in assets and an increase in owner’s equityAn increase in assets and an increase in liabilitiesA decrease in assets and a decrease in owner’s equityA decrease in assets and a decrease in liabilitiesAn increase in liabilities and a decrease in owner’s equityAn increase in owner’s equity and a decrease in liabilities
3. Received $17,000 cash from customers for contracts billed in April. An increase in assets and a decrease in assetsAn increase in assets and an increase in owner’s equityAn increase in assets and an increase in liabilitiesA decrease in assets and a decrease in owner’s equityA decrease in assets and a decrease in liabilitiesAn increase in liabilities and a decrease in owner’s equityAn increase in owner’s equity and a decrease in liabilities
4. Performed computer services to Viking Construction Company for $3,000 cash. An increase in assets and a decrease in assetsAn increase in assets and an increase in owner’s equityAn increase in assets and an increase in liabilitiesA decrease in assets and a decrease in owner’s equityA decrease in assets and a decrease in liabilitiesAn increase in liabilities and a decrease in owner’s equityAn increase in owner’s equity and a decrease in liabilities
5. Paid Tri-States Power Co. $11,000 cash for energy usage in May. An increase in assets and a decrease in assetsAn increase in assets and an increase in owner’s equityAn increase in assets and an increase in liabilitiesA decrease in assets and a decrease in owner’s equityA decrease in assets and a decrease in liabilitiesAn increase in liabilities and a decrease in owner’s equityAn increase in owner’s equity and a decrease in liabilities
6. Kam invested an additional $29,000 in the business. An increase in assets and a decrease in assetsAn increase in assets and an increase in owner’s equityAn increase in assets and an increase in liabilitiesA decrease in assets and a decrease in owner’s equityA decrease in assets and a decrease in liabilitiesAn increase in liabilities and a decrease in owner’s equityAn increase in owner’s equity and a decrease in liabilities
7. Paid Digital Equipment for the terminals purchased in (1) above. An increase in assets and a decrease in assetsAn increase in assets and an increase in owner’s equityAn increase in assets and an increase in liabilitiesA decrease in assets and a decrease in owner’s equityA decrease in assets and a decrease in liabilitiesAn increase in liabilities and a decrease in owner’s equityAn increase in owner’s equity and a decrease in liabilities
8. Incurred advertising expense for May of $1,200 on account. An increase in assets and a decrease in assetsAn increase in assets and an increase in owner’s equityAn increase in assets and an increase in liabilitiesA decrease in assets and a decrease in owner’s equityA decrease in assets and a decrease in liabilitiesAn increase in liabilities and a decrease in owner’s equityAn increase in owner’s equity and a decrease in liabilities

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