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1.The Grandville Company is a consulting company. Grandville adjusts its accounting records on an annual basis at 12/31, the end of its fiscal year. During
1.The Grandville Company is a consulting company. Grandville adjusts its accounting records on an annual basis at 12/31, the end of its fiscal year. During 2022, the Grandville Co. had the following information about cash receipts and cash disbursements: 2022 Cash collected from clients on billings $3,700,000 Cash received from borrowing via a bank loan 400,000 Cash received for interest on the note receivable ? Cash received for repayment of the note receivable 500,000 Cash paid for purchase of office equipment (purchase date was 1/1/2022) 800,000 Cash paid for advertising 200,000 Cash paid for salaries 1,900,000 Cash paid for rent 408,000 Additional information: During 2022, Grandville Co. billed clients $4,300,000 for services rendered in 2022. Grandville began 2022 with a balance in Accounts Receivable of $400,000. Grandville anticipates no bad debts from extending credit to its clients. During 2022, Grandville incurred $250,000 in advertising costs related to advertising that ran in 2022. Grandville began 2022 with a $70,000 balance due to the advertising company. The $408,000 rent payment in 2022 was for 1 year of rent, running Oct. 1, 2022 to Sept. 30, 2023. Grandville has a policy of recording all prepayments of rent as rent
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