Answered: Transactions Bridgeport Delivery…

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

Bridgeport Delivery Service is owned and operated by Jerome Foley. The following selected transactions were completed by Bridgeport Delivery Service during February:

Indicate the effect of each transaction on the accounting equation elements (Assets, Liabilities, Owner's Equity). Also indicate the specific account 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.

	Element	Item	Direction
1. Received cash from owner as additional investment, $40,000.	Asset	Cash	Increases
	Owner's Equity	Jerome Foley, Capital	Increases

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.

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