Interstate Delivery Service is owned and operated by Katie Wyer. The following selected transactions were completed by Interstate Delivery during May:1. Received cash in exchange for common stock, $18,000.2. 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.Indicate the effect erf each transaction on the following accounting equation elements: Assets, Lia bilities, Common Stock, Dividends, Revenue, and Expense. To illustrate, the answer to (1) follows: f 7) Asset (Cash) increases by $18,000; Common Stock increases by $18,000.
Interstate Delivery Service is owned and operated by Katie Wyer. The following selected transactions were completed by Interstate Delivery during May:1. Received cash in exchange for common stock, $18,000.2. 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.Indicate the effect erf each transaction on the following accounting equation elements: Assets, Lia bilities, Common Stock, Dividends, Revenue, and Expense. To illustrate, the answer to (1) follows: f 7) Asset (Cash) increases by $18,000; Common Stock increases by $18,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Interstate Delivery Service is owned and operated by Katie Wyer. The following selected transactions were completed by Interstate Delivery during May:
1. Received cash in exchange for common stock, $18,000.
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.
Indicate the effect erf each transaction on the following
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