The Alex Company,a consulting firm,recorded the following selected business transactions during May,2011.Indicate whether each transaction would increase,decrease,or have no effect on the total assets of the company. $\begin{array}{l}
\begin{array}{l}
\text { 1. Issued capital stock in exchange for cash contributed by owners } \
\text {2. Paid cash on accounts payable to a supplier. } \
\text {3. Loaned money to an employee } \
\text {4. Borrowed money from the bank on a promissory note payable} \
\text { 5. Collected cash on accounts receivable} \
\text { 6. Purchased a building by using cash and signing a mortgage payable} \
\text { 7. Purchased office supplies on credit} \
\text { 8. Purchased office supplies for cash}\
\end{array}
\begin{array}{rl}
\text {Increase 1}\
\text {No effect 8}\
\text {Increase 7}\
\text {Decrease 2}\
\text {No effect 5}\
\text {Increase 4}\
\text {No effect 3}\
\text {Increase 6}\
\end{array}
\end{array}$

Question

The Alex Company,a consulting firm,recorded the following selected business transactions during May,2011.Indicate whether each transaction would increase,decrease,or have no effect on the total assets of the company. $\begin{array}{l}
\begin{array}{l}
\text { 1. Issued capital stock in exchange for cash contributed by owners } \
\text {2. Paid cash on accounts payable to a supplier. } \
\text {3.  Loaned money to an employee } \
\text {4. Borrowed money from the bank on a promissory note payable} \
\text { 5. Collected cash on accounts receivable} \
\text { 6. Purchased a building by using cash and signing a mortgage payable} \
\text { 7. Purchased office supplies on credit} \
\text { 8.  Purchased office supplies for cash}\
\end{array}
\begin{array}{rl}
\text {Increase 1}\
\text {No effect 8}\
\text {Increase 7}\
\text {Decrease 2}\
\text {No effect 5}\
\text {Increase 4}\
\text {No effect 3}\
\text {Increase 6}\
\end{array}
\end{array}$

The Alex Company,a Consulting Firm,recorded the Following Selected Business Transactions