Lawrence Legal Eagles Company Entered into the Following Transactions During

Essay

Lawrence Legal Eagles Company entered into the following transactions during
March 2013.
1. Purchased office equipment for $21,500 from Business Equipment, Inc. on account.
2. Paid $4,000 cash for March rent on office furniture.
3. Received $15,000 cash from customers for legal work billed in February.
4. Provided legal services to Amy Construction Company for $3,000 cash.
5. Paid Northern States Power Co. $11,000 cash for electric usage in March.
6. Lawrence invested an additional $32,000 in the business.
7. Paid Business Equipment, Inc. for the office equipment purchased in (1) above.
8. Incurred advertising expense for March of $1,200 on account.
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.
(e) a decrease in assets and a decrease in liabilities.
(f) an increase in liabilities and a decrease in equity.
(g) an increase in equity and a decrease in liabilities.