The following selected transactions were completed by Roberto Orcajada Delivery Service during July 2018: 1. Cash received from delivery services, P92, 700. 2. Paid creditors on account, P20, 000. 3. Received cash from owner as additional investment, P600, 000. 4. Paid advertising expenses, P5, 000. 5. Billed customers for delivery services on account, P55, 200. 6. Purchased supplies for cash, P6, 000. 7. Paid rent for July, P20, 000. 8. Received cash from customers on account, P25, 440. 9. Determined that the cost of supplies on hand was P1, 440. 10. Owner withdrew cash for personal use, P20, 000. Indicate the effects of each transaction on the space provided: a. Increase an asset, decrease another asset b. Increase an asset, increase a liability c. Increase an asset, increase owner’s equity d. Decrease an asset, decrease a liability. e. Decrease an asset, decrease owner’s equity.
The following selected transactions were completed by Roberto Orcajada Delivery Service during July 2018: 1. Cash received from delivery services, P92, 700. 2. Paid creditors on account, P20, 000. 3. Received cash from owner as additional investment, P600, 000. 4. Paid advertising expenses, P5, 000. 5. Billed customers for delivery services on account, P55, 200. 6. Purchased supplies for cash, P6, 000. 7. Paid rent for July, P20, 000. 8. Received cash from customers on account, P25, 440. 9. Determined that the cost of supplies on hand was P1, 440. 10. Owner withdrew cash for personal use, P20, 000. Indicate the effects of each transaction on the space provided: a. Increase an asset, decrease another asset b. Increase an asset, increase a liability c. Increase an asset, increase owner’s equity d. Decrease an asset, decrease a liability. e. Decrease an asset, decrease owner’s equity.
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter3: Basic Accounting Systems: Accrual Basis
Section: Chapter Questions
Problem 2SEQ: On January 24, 20Y8, Niche Consulting collected $5,700 it had hilled its clients for services...
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The following selected transactions were completed by Roberto Orcajada Delivery Service during July 2018:
1. Cash received from delivery services, P92, 700.
2. Paid creditors on account, P20, 000.
3. Received cash from owner as additional investment, P600, 000.
4. Paid advertising expenses, P5, 000.
5. Billed customers for delivery services on account, P55, 200.
6. Purchased supplies for cash, P6, 000.
7. Paid rent for July, P20, 000.
8. Received cash from customers on account, P25, 440.
9. Determined that the cost of supplies on hand was P1, 440.
10. Owner withdrew cash for personal use, P20, 000.
Indicate the effects of each transaction on the space provided:
a. Increase an asset, decrease another asset
b. Increase an asset, increase a liability
c. Increase an asset, increase owner’s equity
d. Decrease an asset, decrease a liability.
e. Decrease an asset, decrease owner’s equity.
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