Question

In January, Tongo, Inc., a branding consultant, had the following transactions. Indicate the accounts, amounts, and direction of the effects on the accounting equation under the accrual basis. A sample is provided. (Enter any decreases to account balances with a minus sign.)

1. (Sample) Received $16,600 cash for consulting services rendered in January.
2. Issued common stock to investors for $15,000 cash.
3. Purchased $16,100 of equipment, paying 25 percent in cash and owing the rest on a note due in two years.
4. Received $12,500 cash for consulting services to be performed in February.
5. Bought and received $1,550 of supplies on account.
6. Received utility bill for January for $1,960, due February 15.
7. Consulted for customers in January for fees totaling $19,600, due in February.
8. Received $14,300 cash for consulting services rendered in December.
9. Paid $775 toward supplies purchased in (e).

Answer 1

Answer

--Requirement, as asked

	Assets		Liabilities		Stockholder's equity
a	Cash	$16,600			Service Revenue	$16,600
b	Cash	$15,000			Common Stock	$15,000
c	Equipment	$16,100	Accounts Payable	$12,075
	Cash	($4,025)
d	Cash	$12,500	Unearned Revenue	$12,500
e	Supplies	$1,550	Accounts Payable	$1,550
f			Utilities Payable	$1,960	Utilities expense	($1,960)
g	Accounts receivables	$19,600			Service Revenue	$19,600
h	Cash	$14,300
	Accounts receivables	($14,300)
i	Cash	($775)	Accounts Payable	($775)
	Balance	$76,550	Balance	$27,310	Balance	$49,240