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.

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