The following account balances are taken from the December 31, 2015 financial statements of ABZ Advertising Company.
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Question:
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?
Related Book For
Understanding Financial Accounting
ISBN: 978-1118849385
1st Canadian Edition
Authors: Christopher Burnley, Robert Hoskin, Maureen Fizzell, Donald
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