Answered: Interstate Delivery Service is owned…

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter1: Introduction To Accounting And Business

Section: Chapter Questions

Problem 3BE: Transactions Interstate Delivery Service is owned and operated by Katie Wyer. The following selected...

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Transactions

Interstate Delivery Service is owned and operated by Katie Wyer. The following selected transactions were completed by Interstate Delivery Service during May:

Select the accounting equation elements (Assets, Liabilities, Owner's Equity) affected by the transaction. Then, in the "Direction" column, select the impact ("Increases" or "Decreases") on the accounting equation element. Lastly, select the specific account within the accounting equation element that is affected. To illustrate, the answer to (1) follows:

(1) Asset (Cash) increases by $18,000; Owner's Equity (Katie Wyer, Capital) increases by $18,000.

		Element	Direction	Item
1.	Received cash from owner as additional investment, $18,000.	Asset Owner's Equity	Increases Increases	Cash Katie Wyer, Capital

2.	Paid advertising expense, $4,850.


3.	Purchased supplies on account, $2,100.


4.	Billed customers for delivery services on account, $14,700.


5.	Received cash from customers on account, $8,200.

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