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 $18,600 cash for consulting services rendered in January. b. Issued common stock to investors for $8,500 cash. c. Purchased $17,500 of equipment, paying 25 percent in cash and owing the rest on a note due in two years. d. Received $11,300 cash for consulting services to be performed in February. e Bought and received $1,850 of supplies on account. f Received utility bill for January for $1,870, due February 15. g. Consulted for customers in January for fees totaling $20,500, due in February. h. Received $17,600 cash for consulting services rendered in December. 1. Paid $925 toward supplies purchased in (e).
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 $18,600 cash for consulting services rendered in January. b. Issued common stock to investors for $8,500 cash. c. Purchased $17,500 of equipment, paying 25 percent in cash and owing the rest on a note due in two years. d. Received $11,300 cash for consulting services to be performed in February. e Bought and received $1,850 of supplies on account. f Received utility bill for January for $1,870, due February 15. g. Consulted for customers in January for fees totaling $20,500, due in February. h. Received $17,600 cash for consulting services rendered in December. 1. Paid $925 toward supplies purchased in (e).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text: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 $18,600 cash for consulting services rendered in January.
b. Issued common stock to investors for $8,500 cash.
c. Purchased $17,500 of equipment, paying 25 percent in cash and owing the rest on a note due in two years.
d. Received $11,300 cash for consulting services to be performed in February.
e Bought and received $1,850 of supplies on account.
/ Received utility bill for January for $1,870, due February 15.
g. Consulted for customers in January for fees totaling $20,500, due in February
h. Received $17,600 cash for consulting services rendered in December.
1. Paid $925 toward supplies purchased in (e).
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