Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
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. (Enter any decreases to account balances with a minus sign.) a. (Sample) Received $12,200 cash for consulting services rendered in January b. Issued common stock to investors for $16,000 cash. c. Purchased $14.400 of equipment, paying 25 percent in cash and owing the rest on a note due in two years. d. Received $9.200 cash for consulting services to be performed in February e. Bought and received $1,700 of supplies on account Received utility bill for January for $1.520, due February 15. g. Consulted for customers in January for fees totaling $23.500 due in February h. Received $13.700 cash for consulting services rendered in December . Paid $850 toward supplies purchased in (el Assets Liabilities + 12.200 Stockholders'Equity Service Revente Common Stock / a Cash bCash c Equipment Cash d Cash 16,000 14.400 (3.600 Notes Payable (long-term) 10.800 Service Revenue Deferred Revenue 9200 Accounts Payable Dok a. Received contributions from investors and issued $180,000 of common stock on April 1 b. Acquired a barn for $196,000. On April 2, the company paid half the amount in cash and signed a three-year note payable for the balance c. Provided $20.500 in animal care services for customers on April 3. all on credit d. Rented stables to customers who cared for their own animals: received cash of $15.500 on April 4 for rent earned this month e. On April 5, received $4,250 cash from a customer to board her horse in May, June, and July (record as Deferred Revenue Purchased and received hay and feed supplies on account on April 6 for $4,200. g. Paid $2.700 on accounts payable on April 7 for previous purchases. h. Received $1540 from customers on April 8 on accounts receivable, On April 9, prepaid a two-year insurance policy for $5.400 for coverage starting in May. . On April 28. pald $1.680 in cash for water and utilities used this month k. Pald $14.400 in wages on April 29 for work done this month Received an electric utility bill on April 30 for $2.200 for usage in April the bill will be paid next month Required: 1. Prepare the journal entry for each of the above transactions. 2. Post the transaction activity from requirement to the T-Accounts below. All accounts begin with zero balances because this is the first month of operations 3. Prepare an unadjusted trial balance as of April 30 4.0. Refer to the revenues and expenses shown on the unadjusted trial balance. Based on this information calculate preliminary net Income and net profit margin 4-b. Determine whether the net profit margin is better or worse than the 300 percent earned by a close competito

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Franchising An Accounting Auditing And Income Tax Guide

Authors: Ross A. McCallum

2011edition

1460906179, 978-1460906170

More Books

Students also viewed these Accounting questions

Question

7. List behaviors to improve effective leadership in meetings

Answered: 1 week ago

Question

6. Explain the six-step group decision process

Answered: 1 week ago