Quicken Delivery Service is owned and operated by Zoey Tucker. The following selected transactions were completed by Quicken Delivery Service during July:
1. Received cash from owner as additional investment, $9,000.
2. Paid advertising expense, $674.
3. Purchased supplies on account, $280.
4. Billed customers for delivery services on account, $4,800.
5. Received cash from customers on account, $1,150.
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 $9,000; Owner’s Equity (Zoey Tucker, Capital) increases by $9,000.