Summary Business Accounting

The following selected transactions were completed by Reuben’s Delivery Service during October: 1. Received cash from owner as additional investment, $20,000. 2. Purchased supplies for cash, $900. 3. Paid rent for October, $3,000. 4. Paid advertising expense, $2,500. 5. Received cash for providing delivery services, $23,100. 6. Billed customers for delivery services on account, $41,750. 7. Paid creditors on account, $4,500. 8. Received cash from customers on account, $36,200. 9. Determined that the cost of supplies on hand was $175 and $725 of supplies had been used during the month. 10. Paid cash to owner for personal use, $1,000. Indicate the effect of each transaction on the accounting equation by listing the numbers identifying the transactions, (1) through (10), in a column, and inserting at the right of each number the appropriate letter from the following list: a. Increase in an asset, decrease in another asset. b. Increase in an asset, increase in a liability. c. Increase in an asset, increase in owner’s equity. d. Decrease in an asset, decrease in a liability. e. Decrease in an asset, decrease in owner’s equity