FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The following selected transactions were completed by Cota Delivery Service during July:
- Received cash in exchange for common stock, $35,000.
- Purchased supplies for cash, $1,100.
- Paid rent for October, $4,500.
- Paid advertising expense, $900.
- Received cash for providing delivery services, $33,000.
- Billed customers for delivery services on account, $58,000.
- Paid creditors on account, $2,900.
- Received cash from customers on account, $27,500.
- Determined that the cost of supplies on hand was $300 and $8,600 of supplies had been used during the month.
- Paid cash dividends, $2,500.
Indicate the effect of each transaction on the
- Increase in an asset, decrease in another asset.
- Increase in an asset, increase in a liability.
- Increase in an asset, increase in
stockholders’ equity. - Decrease in an asset, decrease in a liability.
- Decrease in an asset, decrease in stockholders’ equity.
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