The following selected transactions were completed by Reuben’s Delivery Service during October:

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.

Answer:
1. c   6. c
2. a   7. d
3. e   8. a
4. e   9. e
5. c   10. e