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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 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
Money47,692
accounts receivable7,974
Interest expenses2,438
Accounts payable5,300
operating expenses43,405
unearned income1,356
Equipment20,899
Income from tax expenses2,679

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?

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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... blur-text-image

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