Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following account balances are taken from the December 31, 2018, financial statements of ABZ Advertising Company. The company uses accrual basis accounting. Advertising Revenue

The following account balances are taken from the December 31, 2018, financial statements of ABZ Advertising Company. The company uses accrual basis accounting.

Advertising Revenue $ 52,402
Cash 46,638
Accounts Receivable 7,861
Interest Expense 2,415
Accounts Payable 5,250
Operating Expenses 42,446
Deferred Revenue 1,326
Equipment 20,437
Income Tax Expense 2,620

The following activities occurred in 2019:

  1. Performed advertising services on account, $62,000.

  2. Received cash payments on account, $11,900.

  3. Received deposits from customers for advertising services to be performed in 2020, $3,500.

  4. Made payments to suppliers on account, $5,250.

  5. Incurred $50,700 of operating expenses; $43,950 was paid in cash and $6,750 was on account and unpaid as of the end of the year.

What is the amount of revenue that will be reported on the income statement for the year ended December 31, 2019?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Forecasting Volatility In The Financial Markets

Authors: Stephen Satchell, John Knight

2nd Edition

0750655151, 9780750655156

More Books

Students also viewed these Accounting questions

Question

How might HR technology affect the various HR functions?

Answered: 1 week ago