ated, a branding consultant, had the following transactions. Indicate the accounts, amounts, and directio the effects on the accounting equation under the accrual basis. A sample is provided. a. (Sample) Received $9,700 cash for consulting services rendered in January. b. Issued common stock to investors for $11,500 cash. c. Purchased $21,500 of equipment, paying 25 percent in cash and owing the rest on a note due in two years. d. Received $8,450 cash for consulting services to be performed in February. e. Bought and received $1,250 of supplies on account. f. Received utility bill for January for $2,170, due February 15. g. Consulted for customers in January for fees totaling $16,300, due in February. h. Received $16,700 cash for consulting services rendered in December. i. Paid $625 toward supplies purchased in (e). Required: ndicate the accounts, amounts, and direction of the effects on the accounting equation under the accrual basis. A sample is provided. (Enter any decreases to Assets, Liabilities, and Stockholder's Equity with a minus sign.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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January, longo, Incorporated, 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.
a. (Sample) Received $9,700 cash for consulting services rendered in January.
b. Issued common stock to investors for $11,500 cash.
c. Purchased $21,500 of equipment, paying 25 percent in cash and owing the rest on a note due in two years.
d. Received $8,450 cash for consulting services to be performed in February.
e. Bought and received $1,250 of supplies on account.
f. Received utility bill for January for $2,170, due February 15.
g. Consulted for customers in January for fees totaling $16,300, due in February.
h. Received $16,700 cash for consulting services rendered in December.
i. Paid $625 toward supplies purchased in (e).
4
Required:
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 Assets, Liabilities, and Stockholder's Equity with a minus sign.)
a
Cash
b Notes Payable (short-term)
C
C
d
e
f
Assets
g
h
h
i
9,700
Liabilities
+
+
+
+
+
+
+
+
+
+
+
+
Stockholders' Equity
Service Revenue
9,700
Transcribed Image Text:January, longo, Incorporated, 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. a. (Sample) Received $9,700 cash for consulting services rendered in January. b. Issued common stock to investors for $11,500 cash. c. Purchased $21,500 of equipment, paying 25 percent in cash and owing the rest on a note due in two years. d. Received $8,450 cash for consulting services to be performed in February. e. Bought and received $1,250 of supplies on account. f. Received utility bill for January for $2,170, due February 15. g. Consulted for customers in January for fees totaling $16,300, due in February. h. Received $16,700 cash for consulting services rendered in December. i. Paid $625 toward supplies purchased in (e). 4 Required: 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 Assets, Liabilities, and Stockholder's Equity with a minus sign.) a Cash b Notes Payable (short-term) C C d e f Assets g h h i 9,700 Liabilities + + + + + + + + + + + + Stockholders' Equity Service Revenue 9,700
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