Business Transaction 8 Roadrunner received a check for $1,200 from a customer, Sims Corporation, for delivery services. ANALYSIS Identify Classify 1. Roadrunner received cash, so Cash in Bank is affected. The payment received is revenue. Revenue increases owner's equity, so Maria Sanchez, Capital is also affected. 2. Cash in Bank is an asset account. Maria Sanchez, Capital is an owner's equity account. 3. Cash in Bank is increased by $1,200. Maria Sanchez, Capital is also increased by $1,200. 4. The accounting equation remains in balance. +/- Balance Assets Cash Accounts in Bank Receivable Prev.Bal. $21,850 $0 Trans. 8 +1,200 Balance $23,050 + $0 Computer Equipment $3,000 Office Equipment $200 = Liabilities + Owner's Equity Delivery Accounts Maria Sanchez, Equipment Payable Capital $12,000 $11,650 $25,400 +1,200 + $12,000 = $11,650 + $26,600 + $3,000 + $200 Business Transaction 8 Roadrunner received a check for $1,200 from a customer, Sims Corporation, for delivery services. ANALYSIS Identify Classify 1. Roadrunner received cash, so Cash in Bank is affected. The payment received is revenue. Revenue increases owner's equity, so Maria Sanchez, Capital is also affected. 2. Cash in Bank is an asset account. Maria Sanchez, Capital is an owner's equity account. 3. Cash in Bank is increased by $1,200. Maria Sanchez, Capital is also increased by $1,200. 4. The accounting equation remains in balance. +/- Balance Assets Cash Accounts in Bank Receivable Prev.Bal. $21,850 $0 Trans. 8 +1,200 Balance $23,050 + $0 Computer Equipment $3,000 Office Equipment $200 = Liabilities + Owner's Equity Delivery Accounts Maria Sanchez, Equipment Payable Capital $12,000 $11,650 $25,400 +1,200 + $12,000 = $11,650 + $26,600 + $3,000 + $200