Yukon Delivery Service is owned and operated by Betty Pasha. The following selected transactions were completed by Yukon Delivery Service during June:
1. Received cash from owner as additional investment, $10,000.
2. Paid creditors on account, $1,500.
3. Billed customers for delivery services on account, $11,500.
4. Received cash from customers on account, $2,700.
5. Paid cash to owner for personal use, $2,000.
Indicate the effect of each transaction on the accounting equation elements (Assets, Liabilities, Owner’s Equity, Drawing, Revenue, and Expense) by listing the numbers identifying the transactions, (1) through (5). Also, indicate the specific item within the accounting equation element that is affected. To illustrate, the answer to (1) is shown below.
(1) Asset (Cash) increases by $10,000; Owner’s Equity (Betty Pasha, Capital) increases by $10,000.