Zany Delivery Service is owned and operated by Joey Bryant. The following selected transactions were completed by
Question:
Zany Delivery Service is owned and operated by Joey Bryant. The following selected transactions were completed by Zany Delivery Service during February:
1. Received cash from owner as additional investment, $15,000.
2. Paid advertising expense, $900.
3. Purchased supplies on account, $600.
4. Billed customers for delivery services on account, $9,000.
5. Received cash from customers on account, $5,500.
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 $15,000; Owner’s Equity (Joey Bryant, Capital) increases by $15,000.
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1 Asset cash increases by 15000 ...View the full answer
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Related Book For 
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
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