Describe and illustrate how business transactions can be recorded in terms of the resultingchange in the elements of the accounting equation. The following selected transactions were completed by Silverado Delivery Service during February: 1. Received cash from owner as additional investment, $25,000. 2. Purchased supplies for cash, $750. 3. Paid rent for February, $3,000. 4. Paid advertising expense, $1,500. 5. Received cash for providing delivery services, $16,800. Print Preview https://ng.cengage.com/static/nbreader/ui/apps/nbreader/print_preview/pr... 8 of 20 1/10/2021, 6:41 PM 6. Billed customers for delivery services on account, $32,500. 7. Paid creditors on account, $1,400. 8. Received cash from customers on account, $23,770. 9. Determined that the cost of supplies on hand was $275 and $475 of supplies had been used during the month. 10. Paid cash to owner for personal use, $5,000. Indicate the effect of each transaction on the accounting equation by listing the numbers identifying the transactions, (1) through (10), in a 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 owner’s equity. d. Decrease in an asset, decrease in a liability. e. Decrease in an asset, decrease in owner’s equity.
Describe and illustrate how business transactions can be recorded in
terms of the resultingchange in the elements of the
The following selected transactions were completed by Silverado Delivery
Service during February:
1. Received cash from owner as additional investment, $25,000.
2. Purchased supplies for cash, $750.
3. Paid rent for February, $3,000.
4. Paid advertising expense, $1,500.
5. Received cash for providing delivery services, $16,800.
Print Preview https://ng.cengage.com/static/nbreader/ui/apps/nbreader/print_preview/pr...
8 of 20 1/10/2021, 6:41 PM
6. Billed customers for delivery services on account, $32,500.
7. Paid creditors on account, $1,400.
8. Received cash from customers on account, $23,770.
9. Determined that the cost of supplies on hand was $275 and $475 of
supplies had been used during the month.
10. Paid cash to owner for personal use, $5,000.
Indicate the effect of each transaction on the accounting equation by listing the
numbers identifying the transactions, (1) through (10), in a 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 owner’s equity.
d. Decrease in an asset, decrease in a liability.
e. Decrease in an asset, decrease in owner’s equity.
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