Question
The following account balances are taken from the December 31, 2015, financial statements of ABZ Advertising Company. The company uses accrual basis accounting. Advertising revenue
The following account balances are taken from the December 31, 2015, financial statements of ABZ Advertising Company. The company uses accrual basis accounting. |
Advertising revenue $ 51,218 Cash 45,584 Accounts receivable 7,748 Interest expense 2,392 Accounts payable 5,200 Operating expenses 41,487 Unearned revenue 1,296 Equipment 19,975 Income tax expense 2,561
The following activities occurred in 2016: |
1. | Performed advertising services on account, $60,600. | |
2. | Received cash payments on account, $11,600. | |
3. | Received deposits from customers for advertising services to be performed in 2017, $3,300. | |
4. | Made payments to suppliers on account, $5,200.
| |
1. What is the balance in the Cash account at December 31, 2016? 2.What is the balance of Accounts Receivable at December 31, 2016? 3.What is the amount of revenue that will be reported on the income statement for the year ended December 31, 2016? |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started