Transactions

The selected transactions below were completed by Silverado Delivery Service during February:

Indicate the effect of each transaction on the accounting equation by choosing the appropriate letter from the following list:

1. Increase in an asset, decrease in another asset.
2. Increase in an asset, increase in a liability.
3. Increase in an asset, increase in owner’s equity.
4. Decrease in an asset, decrease in a liability.
5. Decrease in an asset, decrease in owner’s equity.

1.  Received cash from owner as additional investment, $25,000.
 

2.  Purchased supplies for cash, $750.
 

3.  Paid rent for February, $3,000.
 

4.  Paid advertising expense, $1,500.
 

5.  Received cash for providing delivery services, $16,800.
 

6.  Billed customers for delivery services on account, $32,500.
 

7.  Paid creditors on account, $1,400.
 

8.  Received cash from customers on account, $23,770.
 

9.  Determined that the cost of supplies on hand was $275 and $475 of supplies had been used during the month.
 

10.  Paid cash to owner for personal use, $5,000.
 

Transactions

The selected transactions below were completed by Silverado Delivery Service during February:

Indicate the effect of each transaction on the accounting equation by choosing the appropriate letter from the following list:

1. Increase in an asset, decrease in another asset.
2. Increase in an asset, increase in a liability.
3. Increase in an asset, increase in owner’s equity.
4. Decrease in an asset, decrease in a liability.
5. Decrease in an asset, decrease in owner’s equity.

1.  Received cash from owner as additional investment, $25,000.
 

2.  Purchased supplies for cash, $750.
 

3.  Paid rent for February, $3,000.
 

4.  Paid advertising expense, $1,500.
 

5.  Received cash for providing delivery services, $16,800.
 

6.  Billed customers for delivery services on account, $32,500.
 

7.  Paid creditors on account, $1,400.