The following selected transactions were completed by Roberto Orcajada Delivery Service during July 2018: 1. Cash received from delivery services, P92, 700. 2. Paid creditors on account, P20, 000. 3. Received cash from owner as additional investment, P600, 000. 4. Paid advertising expenses, P5, 000. 5. Billed customers for delivery services on account, P55, 200. 6. Purchased supplies for cash, P6, 000. 7. Paid rent for July, P20, 000. 8. Received cash from customers on account, P25, 440. 9. Determined that the cost of supplies on hand was P1, 440. 10. Owner withdrew cash for personal use, P20, 000. Indicate the effects of each transaction on the space provided: a. Increase an asset, decrease another asset b. Increase an asset, increase a liability c. Increase an asset, increase owner’s equity d. Decrease an asset, decrease a liability. e. Decrease an asset, decrease owner’s equity.
The following selected transactions were completed by Roberto Orcajada Delivery Service during July 2018: 1. Cash received from delivery services, P92, 700. 2. Paid creditors on account, P20, 000. 3. Received cash from owner as additional investment, P600, 000. 4. Paid advertising expenses, P5, 000. 5. Billed customers for delivery services on account, P55, 200. 6. Purchased supplies for cash, P6, 000. 7. Paid rent for July, P20, 000. 8. Received cash from customers on account, P25, 440. 9. Determined that the cost of supplies on hand was P1, 440. 10. Owner withdrew cash for personal use, P20, 000. Indicate the effects of each transaction on the space provided: a. Increase an asset, decrease another asset b. Increase an asset, increase a liability c. Increase an asset, increase owner’s equity d. Decrease an asset, decrease a liability. e. Decrease an asset, decrease owner’s equity.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following selected transactions were completed by Roberto Orcajada Delivery Service during July 2018:
1. Cash received from delivery services, P92, 700.
2. Paid creditors on account, P20, 000.
3. Received cash from owner as additional investment, P600, 000.
4. Paid advertising expenses, P5, 000.
5. Billed customers for delivery services on account, P55, 200.
6. Purchased supplies for cash, P6, 000.
7. Paid rent for July, P20, 000.
8. Received cash from customers on account, P25, 440.
9. Determined that the cost of supplies on hand was P1, 440.
10. Owner withdrew cash for personal use, P20, 000.
Indicate the effects of each transaction on the space provided:
a. Increase an asset, decrease another asset
b. Increase an asset, increase a liability
c. Increase an asset, increase owner’s equity
d. Decrease an asset, decrease a liability.
e. Decrease an asset, decrease owner’s equity.
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