Peachtree Delivery Service is owned and operated by Terry Young. The following selected transactions were completed...

  

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Peachtree Delivery Service is owned and operated by Terry Young. The following selected transactions were completed by Peachtree Delivery Service during February: Indicate the effect of each transaction on the accounting equation elements (Assets, Liabilities, Owner's Equity). 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. Element Item Direction 1. Received cash from owner as Asset Cash Increases additional investment, $65,200. Owner's Equity Terry Young, Capital Increases 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. Peachtree Delivery Service is owned and operated by Terry Young. The following selected transactions were completed by Peachtree Delivery Service during February: Indicate the effect of each transaction on the accounting equation elements (Assets, Liabilities, Owner's Equity). 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. Element Item Direction 1. Received cash from owner as Asset Cash Increases additional investment, $65,200. Owner's Equity Terry Young, Capital Increases 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.