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Massa Company provides marketing consulting services worldwide for dot-com companies. At the start of 2017, Massa's T-account balances were as follows: Cash Accounts Receivable LT
Massa Company provides marketing consulting services worldwide for dot-com companies. At the start of 2017, Massa's T-account balances were as follows: Cash Accounts Receivable LT Investments 6,400 16.000 12.800 Accounts Payable 4.800 Unearned Revenue 11.200 LT Notes Payable 3,200 Additional Paid-in-Capital Retained Earnings Common Stock (50.20 par) 1.600 8,000 6,400 Consulting Fee Revenue Investment Income Wages Expense Travel Expense Utilities Expense Rent Expense a. c. Q1 : Prepare the journal entries for each transaction and post those journal entries to the T-accounts provided: Provided $116,000 in services to clients who paid $96.000 in cash and owed the rest on account. b. Received $11,200 cash from clients on account. Received $800 in cash as income on investments. d. Paid $72,000 in wages. $24.000 in travel, $15,200 in rent, and $3.200 on accounts payable. Received $3,200 in cash from clients in advance of services Massa will provide next year. f. Received a utility bill for $1,600 for 2017 services to be paid in 2018. g. Paid $960 in dividends to stockholders. Q2: Compute ending balances in the T-accounts to determine amounts for the following on December 31, 2017: Revenue - Expenses $ = Net Income Assets $_ = Liabilities $ + Stockholders' Equity $_ e. Q3 : Calculate (a) the current ratio at the end of 2017 and (b) the net profit margin ratio for 2017. (Round your answer to 4 decimal places.)
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