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[The following information applies to the questions displayed below . ] The following account balances are taken from the December 31, 2015, financial statements of
[The following information applies to the questions displayed below.] |
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 | $ 58,322 |
Cash | 51,907 |
Accounts receivable | 8,426 |
Interest expense | 2,530 |
Accounts payable | 5,500 |
Operating expenses | 47,241 |
Unearned revenue | 1,476 |
Equipment | 22,746 |
Income tax expense | 2,916 |
The following activities occurred in 2016: |
1. | Performed advertising services on account, $69,000. |
2. | Received cash payments on account, $13,400. |
3. | Received deposits from customers for advertising services to be performed in 2017, $4,500. |
4. | Made payments to suppliers on account, $5,500. |
5. | Incurred $56,450 of operating expenses; $48,950 was paid in cash and $7,500 was on account and unpaid as of the end of the year. |
3. value:
What is the balance in the Cash account at December 31, 2016?
$15,357
$59,807
$57,328
$51,907
4. value:
What is the amount of revenue that will be reported on the income statement for the year ended December 31, 2016?
$48,950.
$69,000.
$63,500.
$73,500.
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