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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
(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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