Question

Required information E3-18 and E3-19 Posting to T-Accounts and Creating an Unadjusted Trial Balance [LO 3-3, LO 3-4) (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. 9. 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). E3-18 Posting to T-Accounts [LO 3-3)

Answer 1

Prepare journal entries as follows:

Trn.	Account Titles	Debit	Credit
a)	Cash	$9,500
	Consultancy service revenue		$9,500
b)	Cash	$10,000
	Common stock		$10,000
c)	Equipment	$12,000
	Cash [$12000 * 25%]		$3,000
	Note payable		$9,000
d)	Cash	$7,500
	Unearned service revenue		$7,500
e)	Supplies	$1,000
	Accounts payable		$1,000
f)	Utility Expense	$1,250
	Accounts payable		$1,250
g)	Accounts receivable	$15,900
	Consultancy service revenue		$15,900
h)	Cash	$12,000
	Accounts receivable		$12,000
i)	Accounts payable	$500
	Cash		$500

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Prepare T-accounts as follows:

Cash $9,500 c) $10,000 D) $7,500 $12,000 $3,000 $500 Consultancy service revenue a) $9,500 $15.900 b) d) h) End Bal. $25,400 End. Bal. $35,500 Equipment $12.000 Common stock b) c) $10,000 End. Bal. $12,000 End. Bal. $10.000 Unearned service revenue d) Note payable c) $7,500 $9,000 End. Bal. $7,500 End. Bal. $9,000

Supplies $1,000 Utility Expense $1,250 f) End. Bal. $1,000 End. Bal. $1,250 Accounts receivable $15,900 h) $12,000 1) Accounts payable $500 e) |f) End. Bal. $1,000 $1,250 $1.750 End. Bal. $3,900

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Prepare Unadjusted Trial Balance:

Credit Unadjusted Trial Balance Debit Cash $35,500 Accounts receivable $3,900 Supplies $1,000 Equipment $12,000 Accounts payable Unearned service revenue Notes payable Common stock Consultancy service revenue Utility Expense $1,250 $53,650 $1,750 $7,500 $9.000 $10.000 $25,400 $53,650

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