Question

In January, Tongo, Inc., a branding consultant, had the following transactions a. Received $16,600 cash for consulting services rendered in January b. Issued common stock to investors for $15,000 cash. c. Purchased $16,100 of equipment, paying 25 percent in cash and owing the rest on a note due in 2 years Received $12.500 cash for consuling services to be d. Received $12,500 cash for consulting services to be performed in February e. Bought $1,550 of supplies on account f. Received utility bill for January for $1,960, due February 15 g Consulted for customers in January for fees totaling $19,600, due in February h. Received $14,300 cash for consulting services rendered in December. i Paid S775 toward supplies purchased in (e).
Prepare the journal entry for each of the above transactions (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.)
View transaction list Journal entry worksheet Received $16,600 cash for consulting services rendered in January. Record the transaction
Note: Enter debits before credits. Transaction General Journal Debit Credit a. Record entry Clear entry View general journal

Answer 1

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.