Question

Required information [The following information applies to the questions displayed below.) In January, Tongo, Inc., a branding consultant, had the following transactions. a. Received $12,200 cash for consulting services rendered in January. b. Issued common stock to investors for $16,000 cash. c. Purchased $14,400 of equipment, paying 25 percent in cash and owing the rest on a note due in 2 years. d. Received $9,200 cash for consulting services to be performed in February. e. Bought $1,700 of supplies on account. f. Received utility bill for January for $1,520, due February 15. g. Consulted for customers in January for fees totaling $23,500, due in February. h. Received $13,700 cash for consulting services rendered in December. i. Paid $850 toward supplies purchased in (e). Credit Account Title Debit Cash $13,800 Accounts Receivable 13,400 Supplies 820 Equipment 9,400 Accounts Payable Unearned Revenue Note Payable Common Stock Retained Earnings Service Revenue Utilities Expense 0 $ 5,300 3,800 0 18,000 10,320 0 Enter th beginning account balances and post the effects to the appropriate T-accounts and determine ending account balances.

Answer 1

General Journal

Accounts title Cash To service revenue Debit Credit 12200 a 12200 b 16000 Cash To common stock 16000 с 14400 Equipment To Cash To Notes payable 3600 10800 d 9200 Cash To Unearned revenue 9200 e 1700 Supplies To Account payable 1700 f 1520 Utilities To accounts payable 1520 23500 Accounts receivable To Service revenue 23500 h 13700 Cash To Accounts receivable 13700 i 850 Accounts payable To Cash 850

T Accounts

Cash Dr. Cr. Balance 13800 12200 16000 Particulars Beg. Bal. Service rendered Common stock equipment Unearned revenue Accounts receivable Accounts payable End Bal. 3600 9200 13700 850 60450 60450 Dr.

Supplies Dr. Cr. Balance 820 Particulars Beg. Bal. Accounts payable End Bal. 1700 2520 2520 Dr.

Balance Particulars Beg. Bal. Supplies Utilities bill Cash End Bal. Accounts payable Dr. Cr. 5300 1700 1520 850 7670|7670 Cr.

Notes payable Dr. Cr. Balance 0 Particulars Beg. Bal. equipment End Bal. 10800 10800 10800 Cr.

Particulars Beg. Bal. End Bal. Retained Earnings Dr. Cr. Balance 10320 10320 10320 Cr.

Balance Utilities expenses Particulars Dr. Cr. Beg. Bal. 0 Accounts payable 1520 End Bal. 1520 1520 Dr.

Accounts receivable Particulars Dr. Cr. Balance Beg. Bal. 13400 Service rendered 23500 Cash 13700 End Bal. 23200 23200 Dr.

Equipment Dr. Cr. Balance 9400 Particulars Beg. Bal. Cash Notes payable End Bal. 3600 10800 23800 23800 Dr.

Unearned Revenue Dr. Cr. Balance 3800 Particulars Beg. Bal. Cash End Bal. 9200 13000 13000 Cr.

Balance Service Revenue Particulars Dr. Beg. Bal. Accounts receivbale End bal. Cr. 12200 23500 35700 35700 Cr.

Common stock Dr. Particulars Beg. Bal. Cash End bal Cr. Balance 18000 16000 34000 34000 Cr.

To verify T accounts preparation of Trial balance-

Trial balance after January entries posted Debit Credit Cash 60450 supplies 2520 Accounts payable 7670 Notes payable 10800 Retained earnings 10320 Utilities 1520 Accounts receivable 23200 Equipment 23800 Unearned revenue 13000 common stock 34000 service revenue 35700 Total 111490 111490

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