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.)

a. (Sample) Received $13,200 cash for consulting services rendered in January.
b. Issued common stock to investors for $8,000 cash.
c. Purchased $11,200 of equipment, paying 25 percent in cash and owing the rest on a note due in 2 years.
d. Received $11,800 cash for consulting services to be performed in February.
e. Bought $1,750 of supplies on account.
f. Received utility bill for January for $2,060, due February 15.
g. Consulted for customers in January for fees totaling $19,900, due in February.
h. Received $13,300 cash for consulting services rendered in December.
i.
Paid $875 toward supplies purchased in (e).

ASSETS = LIABILITIES + SHAREHOLDER'S EQUITY

a) cash 13,200 service revenue 13,200

b)

c)

d)

e)

f)

g)

h)

i)

Answer 1

Answer:

b. Cash 8,000 Owners equity 8,000

c. Equipment 11,200 Cash -2,800 Loan 8,400

d. Cash 11,800 Income received in advance 11,800

e.  Supplies 1,750 Accounts Payable 1,750

f. Expenses 2,060 Accounts Payable 2,060

g. Expenses 19,900 Accounts Payable 19,900

h. Cash 13,300 Income 13,300

i. Cash -875 Accounts Payable -875