Use the following to answer questions 15-16 On December 1st, the company pays a local radio...

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Use the following to answer questions 15-16 On December 1st, the company pays a local radio station $48,000 for 3 months of r

business accounting

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Answer 1

Answer #1

Solution 15:

Advertising expense on Dec 31 = $48,000 / 4 = $16,000

Solution 16:

Ending balance of prepaid advertising on Dec 31 = $48,000 - $16,000 = $32,000

Solution 17-19:

S. No.	Transaction	Accrual basis		Cash basis
S. No.	Transaction	Revenue	Expense	Revenue	Expense
17	Issue common stock for $10,000 cash	$0.00	$0.00	$0.00	$0.00
18	Received $3,000 cash from customers who were billed last month	$0.00	$0.00	$3,000.00	$0.00
19	Paid workers $6,000 for working currently.	$0.00	$6,000.00	$0.00	$6,000.00

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Answer 2

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