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 $15,500 cash for consulting services rendered in January.
2. Issued common stock to investors for $14,500 cash.
3. Purchased $16,200 of equipment, paying 25 percent in cash and owing the rest on a note due in two years.
4. Received $8,150 cash for consulting services to be performed in February.
5. Bought and received $1,620 of supplies on account.
6. Received utility bill for January for $1,450, due February 15.
7. Consulted for customers in January for fees totaling $16,700, due in February.
8. Received $20,200 cash for consulting services rendered in December.
9. Paid $810 toward supplies purchased in (e).

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.) a. (Sample) Received $15,500 cash for consulting services rendered in January. b. Issued common stock to investors for $14,500 cash. c. Purchased $16,200 of equipment, paying 25 percent in cash and owing the rest on a note due in two years. d. Received $8,150 cash for consulting services to be performed in February. e. Bought and received $1,620 of supplies on account. f. Received utility bill for January for $1,450, due February 15. g. Consulted for customers in January for fees totaling $16,700, due in February. h. Received $20,200 cash for consulting services rendered in December. 1. Paid $810 toward supplies purchased in (e). Assets Liabilities Stockholders' Equity Service Revenue a Cash 15,500 15,500 b с d e f g h

Answer 1

	Assets	Liabilities	Stockholders' Equity
a	Cash	15500			Service Revenue	15500
b	Cash	14500			Common Stock	14500
c	Equipment	16200	Notes Payable(Long) (16200 * 75%)	12150
	Cash (16200* 25%)	- 4050
d	Cash	8150	Unearned Revenue	8150
e	Supplies	1620	Accounts Payable	1620
f			Accounts Payable	1450	Utilities Expense	- 1450
g	Accounts Receivable	16700			Service Revenue	16700
h	Accounts Receivable	- 20200
	Cash	20200
i	Cash	- 810	Accounts Payable	- 810