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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. |
5. | Incurred $49,600 of operating expenses; $43,000 was paid in cash and $6,600 was on account and unpaid as of the end of the year. |
What is the balance in the Cash account at December 31, 2016?
$50,512
$51,984
$12,284
$45,584
4. value: 2.00 points Required informationWhat is the amount of revenue that will be reported on the income statement for the year ended December 31, 2016?
$60,600.
$55,400.
$43,000.
$63,900.
Revenues are recognized when __________, even when cash is collected in a different accounting period than the revenue is earned. cash is collected bills are paid services are performed customers prepay for goods/services Receiving cash from a customer to pay for a previously recorded account receivable will: increase total assets. have no effect on total assets. decrease liabilities. increase stockholder's equity. 13.The entry to record the payment of accounts payable: decreases assets. increases expenses. increases liabilities. increases stockholder's equity.Step by Step Solution
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