Bridgeport Delivery Service is owned and operated by Jerome Foley. The following selected transactions were completed by
Question:
1. Received cash from owner as additional investment, $40,000.
2. Billed customers for delivery services on account, $13,750.
3. Paid creditors on account, $2,500.
4. Received cash from customers on account, $9,000.
5. Paid cash to owner for personal use, $1,000.
Indicate the effect of each transaction on the accounting equation elements (Assets,
Liabilities, Owner's Equity, Drawing, Revenue, and Expense). Also indicate the specific item within the accounting equation element that is affected. To illustrate, the answer to (1) follows:
(1) Asset (Cash) increases by $40,000; Owner's Equity (Jerome Foley, Capital) increases by $40,000.
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Related Book For
Accounting
ISBN: 978-1337899451
27th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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