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 $9,500 cash for consulting services rendered in January. b. Issued common stock to investors for $10,000 cash. c. Purchased $12,000 of equipment, paying 25 percent in cash and owing the rest on a note due in 2 years. d. Received $7,500 cash for consulting services to be performed in February. e. Bought and received $1,000 of supplies on account. f. Received utility bill for January for $1,250, due February 15. g. Consulted for customers in January for fees totaling $15,900, due in February. h. Received $12,000 cash for consulting services rendered in December i. Paid $500 toward supplies purchased in (e).

Answer 1

Cash
Opening Balance	$           10000.00	©Equipment	$       3000.00
(a)Service Revenue	$           9500.00	(i)Accounts Payable	$          500.00
(b)Common Stock	$           10000.00
(d)Unearned Revenue	$             7500.00
(h)Accounts Receivable	$           12000.00	Closing Balance	$     45500.00
	$           49000.00		$     49000.00
Accounts Receivable
Opening Balance	$           12500.00	(h)Cash	$     12000.00
(g)Service Revenue	$           15900.00	Closing Balance	$     16400.00
	$             28400.00		28400
Supplies
Opening Balance	$             800.00
(e)Accounts Payable	$             1000.00	Closing Balance	$       1800.00
	$             1800.00		$       1800.00
Equipment
Opening Balance	$             5000.00
©-Cash	$             3000.00
©Notes Payable	$            9000.00	Closing Balance	$     17000.00
	$           17000.00		$     17000.00
Accounts Payable
(i)Cash	$                500.00	Opening Balance	$       5000.00
		(e)Supplies	$       1000.00
Closing Balance	$             6750.00	(f)Utilities expenses	$       1250.00
	$             7250.00		$       7250.00
Notes Payable
		Opening Balance	$                 -
Closing Balance	$             9000.00	©Equipment	$       9000.00
	$              9000.00		$       9000.00
Deferred Revenue
		Opening Balance	$       2500.00
Closing Balance	$           10000.00	(d)Cash	$       7500.00
	$           10000.00		$     10000.00
Common Stock
		Opening Balance	$     12000.00
Closing Balance	$           22000.00	(b)-Cash	$     10000.00
	$           22000.00		$     22000.00
Service Revenue
		Opening Balance	$                 -
		(a)-Cash	$     9500.00
Closing Balance	$           25400.00	(g)Accounts Receivable	$     15900.00
	$           25400.00		$     25400.00
Utilities expense
Opening Balance	$                        -
(f)Accounts Payable	$             1250.00	Closing Balance	$       1250.00
	$             1250.00		$       1250.00