connect C.1.4: Unadjusted Trial Balance and Net Profit Margin nline Questions 4-

Question

connect C.1.4: Unadjusted Trial Balance and Net Profit Margin nline Questions 4-5 (of 7) The following information applies to the questions displayed below. In January, Tongo, Inc, a branding consultant, had the following transactions a. Recelved $9,500 cash for consulting services rendered In January. b. Issued common stock to Investors for $10,000 cash. c. Purchased $12000 of equlpment, paying 25 percent in cash and owing the rest on a note due in 2 years d. Recelved $7,500 cash for consulting services to be performed in February e. Bought $1,000 of supplies on account. 25 percent in cash and owing the rest on a note due in 2 years t. Recelved utility bill for January for $1,250, due February 15. g. Consulted for customers In January for fees totaling $15,900, due in February h. Recelved $12,000 cash for consulting services rendered in December. L. Paid $500 toward supplies purchased in (e). Account Title Debit Credit. Cash Accounts recelvable Supplies Equipment Accounts payable Unearned revenue Note payable Common stock Retained earnings Service revenue Utilitles expense $10,000 12,500 800 5,000 $5,000 2,500, 0 12,000 8,800 0 0 value 4.00 points

Explanation / Answer

T-Accounts: Debit Credit Debit Credit Cash Account: Service revenue account: OB 10000 c 3000 CB 25400 a 9500 a 9500 i 500 g 15900 b 10000 CB 45500 d 7500 h 12000 Total 49000 Common Stock account: CB 22000 OB 12000 b 10000 Equipment account: OB 5000 CB 17000 c 12000 Note Payable account: c 9000 Unearned Revenue account: Supplies account: CB 10000 OB 2500 OB 800 CB 1800 d 7500 e 1000 Account payable account: Utility Expense account: i 500 OB 5000 f 1250 CB 6750 e 1000 f 1250 Total 7250 Accounts Receivable a/c: OB 12500 h 12000 g 15900 CB 16400 Total 28400 Adjusted Trial Balance: Accounts Titles Debit $ Credit $ Cash 45500 AR 16400 Supplies 1800 Equip 17000 AP 6750 Unearned Rev 10000 NP 9000 CS 22000 RE 8800 Service Rev 25400 Utilities Expe 1250    Total 81950 81950

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