Question

In January, Tongo, Inc., a branding consultant, had the following transactions.

Answer 1

Answer:

first I will journalize the transactions:

a. Received $13,200 cash for consulting services rendered in January.

Dr Cash 13,200

   Cr Service revenue 13,200

b. Issued common stock to investors for $8,000 cash.

Dr Cash 8,000

   Cr Common stock 8,000

c. Purchased $11,200 of equipment, paying 25 percent in cash and owing the rest on a note due in 2 years.

Dr Equipment 11,200

   Cr Cash 2,800

    Cr Notes payable 8,400

d. Received $11,800 cash for consulting services to be performed in February.

Dr Cash 11,800

    Cr Unearned revenue 11,800

e. Bought $1,750 of supplies on account.

Dr Supplies 1,750

   Cr Accounts payable 1,750

f. Received utility bill for January for $2,060, due February 15.

Dr Utilities expense 2,060

    Cr Accounts payable 2,060

g. Consulted for customers in January for fees totaling $19,900, due in February.

Dr Accounts receivable 19,900

    Cr Service revenue 19,900

h. Received $13,300 cash for consulting services rendered in December.

Dr Cash 13,300

    Cr Accounts receivable 13,300

i. Paid $875 toward supplies purchased in (e).

Dr Accounts payable 875

   Cr Cash 875

Tongo, Inc.

Unadjusted trial balance sheet

For the month ended January 31, 202x

                                                              Debit             Credit

Cash                                                   $56,825                      

Accounts Receivable                        $23,800

Supplies                                                $3,010

Equipment                                          $16,000

Accounts Payable                                                       $9,035

Unearned Revenue                                                   $15,050

Note Payable                                                              $8,400

Common Stock                                                          $18,000

Retained Earnings                                                       $18,110

Service Revenue                                                       $33,100

Utilities Expense                                 $2,060                      

Totals                                                  $101,695        $101,695