6th Edition

ISBN: 9781259864230

Author: PHILLIPS, Fred, Libby, Robert, Patricia A.

Publisher: Mcgraw-hill Education,

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Textbook Question

Chapter 3, Problem 16E

Determining Accounting Equation Effects of Several Transactions

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.

a. (Sample) 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 $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).

Chapter 3, Problem 16E, Determining Accounting Equation Effects of Several Transactions In January, Tongo, Inc., a branding

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Chapter 3, Problem 15E

Chapter 3, Problem 17E

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Chapter 3 Solutions

Fundamentals Of Financial Accounting

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Solution Summary: The author explains the accounting equation, which implies the relationship between the assets, liabilities, and the stockholders equity.

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