Question
Required information Skip to question [The following information applies to the questions displayed below.] Massa Company, which has been operating for three years, provides marketing
Required information
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[The following information applies to the questions displayed below.]
Massa Company, which has been operating for three years, provides marketing consulting services worldwide for dot-com companies. You are a financial analyst assigned to report on the Massa management teams effectiveness at managing its assets efficiently. At the start of 2016 (its fourth year), Massa's T-account balances were as follows. Dollars are in thousands.
2. Enter the following 2016 transactions in the T-accounts: (Enter your answer in thousands, not in dollars.)
a. Provided $59,500 in services to clients who paid $48,700 in cash and owed the rest on account.
b Received $6,500 cash from clients on account.
c. Received $510 in cash as interest revenue on investments.
d. Paid $35,600 in wages, $13,400 in travel, $6,700 in rent, and $800 on accounts payable.
e. Received $1,500 in cash from clients in advance of services Massa will provide next year.
f. Received a utility bill for $690 for 2016 services.
g. Declared and paid $460 in dividends to stockholders.
Assets Cash Accounts Receivable 8,400 3,900 Long-Term Investments 6,700 Liabilities Accounts Payable Unearned Revenue 1,600 4,800 Long-Term Notes Payable 1,800 Stockholders' Equity Common Stock ($.10 par value) Additional Paid-in Capital 660 3,740 Retained Earnings 6,400 Revenues Consulting Fee Revenue Interest Revenue Expenses Wages Expense Travel Expense Utilities Expense Rent Expense Answer is not complete. Cash Accounts Receivable Beg. bal (a) 56.500(d) 10.800 Beg bal. (a) (b) (c) (e) 6,500 (b) 48,700 6,500 510 1,500 480 (9) End. bal. 4.300 End. bal. 250 Long-Term Investments Accounts Payable Beg. bal Beg bal 800 6900 End. bal 0 End. bal. 110 Unearned Revenue Long-Term Notes Payable Beg bal Beg bal. 1.500 le End. bal. 1,500 End. bal. 0 Common Stock Additional Paid-in Capital Beg bal Beg. bal. End. bal. 0 End, bal 0 Retained Earnings Consulting Fee Revenue Beg. bal. (9) Beg. bal. 480 59.500(a) End. bal. 480 End. bal. 59,500 Interest Revenue Wages Expense Beg bal Beg bal. (d) 510 lic) > 35.600 End. bal. 510 End. bal 35,600 Travel Expense Utilities Expense Beg bal. (d) Beg bal (f) > 13.400 > 690 End. bal 13,400 End. bal 690 Rent Expense Beg. bal. (d) 6.700 End. bal. 6,700 3. Compute ending balances in the T-accounts to determine amounts for the following on December 31, 2016: (Enter your answer in thousands, not in dollars.) Answer is complete but not entirely correct. Revenues $ 60,010 $ 3,620 Expenses Liabilities $ 56,390 $ 690 Net Income Stockholders Equity Assets $ 2,190 $ 10,800Step by Step Solution
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