The following selected transactions were completed by Speedy Delivery Service during May:

1. Received cash for capital stock, $25,000.

2. Borrowed $15,000 from a local bank.

3. Paid advertising expense, $800.

4. Paid rent for May, $2,500.

5. Received cash from customers, $7,250.

6. Paid creditors, $500.

7. Paid interest on note payable, $400.

8. Purchased land for future building site by paying cash of $20,000.

9. Paid a customer a $200 refund for an overcharge of services.

10. Paid cash dividends, $1,000.

Indicate the effect of each transaction on the accounting equation by listing the numbers identifying the transactions, (1) through (10), in a vertical 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 stockholders’ equity.

d. Decrease in an asset, decrease in a liability.

e. Decrease in an asset, decrease in stockholders’ equity.