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. 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
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.
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
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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