Peachtree Delivery Service is owned and operated by Jerome Foley. The following selected transactions were completed by

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Peachtree Delivery Service is owned and operated by Jerome Foley. The following selected transactions were completed by Peachtree Delivery Service during February:

1. Received cash from owner as additional investment, $65,000.

2. Billed customers for delivery services on account, $22,400.

3. Paid creditors on account, $4,100.

4. Received cash from customers on account, $14,700.

5. Paid cash to owner for personal use, $1,600.

Indicate the effect of each transaction on the accounting equation elements (Assets, Liabilities, Owner’s Equity, Drawing, Revenue, and Expense). Also indicate the specific item within the accounting equation element that is affected. To illustrate, the answer to (1) follows: 

(1) Asset (Cash) increases by $65,200; Owner’s Equity (Terry Young, Capital) increases by $65,200.

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Related Book For  answer-question

Accounting

ISBN: 9781337902687

28th Edition

Authors: Carl S. Warren, Christine Jonick, Jennifer Schneider

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