Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following account balances are taken from the December 31, 2015 financial statements of ABZ Advertising Company. The company uses accrual accounting. advertising revenue $
The following account balances are taken from the December 31, 2015 financial statements of ABZ Advertising Company. The company uses accrual accounting.
advertising revenue | $ 53,586 |
Money | 47,692 |
accounts receivable | 7,974 |
Interest expenses | 2,438 |
Accounts payable | 5,300 |
operating expenses | 43,405 |
unearned income | 1,356 |
Equipment | 20,899 |
Income from tax expenses | 2,679 |
In 2016 the following activities were carried out: |
1. | Performed advertising services on account, $63,400. |
2. | Received cash payments on account, $12,200. |
3. | Deposits received from clients for advertising services to be performed in 2017, $3,700. |
4. | Made payments to suppliers on account, $5,300. |
5. | Incurred $51,900 of operating expenses; $45,000 was paid in cash and $6,900 was on account and unpaid at the end of the year. |
Required
What is the balance in the Cash account as of December 31, 2016?
What is the Accounts Receivable balance as of December 31, 2016?
What is the amount of revenue to be reported in the income statement for the year ended December 31, 2016?
Step by Step Solution
★★★★★
3.50 Rating (167 Votes )
There are 3 Steps involved in it
Step: 1
SOLUTION The balance in the Cash account as of December 31 2016 can be calculated as follows Cash balance as of December 31 2015 47692 Cash received f...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