Answer:
Tongo, Inc.
General Journal:
a. Debit Cash Account $16,600
Credit Services Revenue $16,600
To record the receipt of cash for consulting services.
b. Debit Cash Account $15,000
Credit Common Stock $15,000
To record the issue of common stock for cash.
c. Debit Equipment $16,100
Credit Cash Account $4,025
Credit Notes Payable $12,075
To record the purchase of equipment for cash and notes payable.
d. Debit Cash Account $12,500
Credit Deferred Revenue $12,500
To record the receipt of cash for consulting services.
e. Debit Supplies $1,550
Credit Accounts Payable $1,550
To record supplies bought on account.
f. Debit Utilities Expense $1,960
Credit Utilities Payable $1,960
To record utilities expense for the month.
g. Debit Accounts Receivable $19,600
Credit Service Revenue $19,600
To record consulting services on account.
h. Debit Cash Account $14,300
Credit Accounts Receivable $14,300
To record the receipt of cash from customers on account.
i. Debit Accounts Payable $775
Credit Cash Account $775
To record payment for supplies.
Explanation:
Tongo, Inc. prepares the general journal to record business transactions as they occur on a daily basis initially in the books of accounts. The general journal shows the accounts that are debited and the ones that are credited after identifying the accounts involved for each transaction.
