Question

Required information The following information applies to the questions displayed below.] Massa Company, which has been operating for three years, provides marketing consulting services worldwide for dot-com companies. You are a financial analyst assigned to report on the Massa management team's effectiveness at managing its assets efficiently. At the start of 2019 (its fourth year), Massa's T-account balances were as follows. Dollars are in thousands. Transactions for 2019: a. Provided $59,300 in services to clients who paid $48,900 in cash and owed the rest on account. b. Received $6,100 cash from clients on account. c. Received $450 in cash as interest revenue on investments. d. Paid $34,700 in wages, $12,900 in travel, $6,700 in rent, and $700 on accounts payable. e. Received $1,200 in cash from clients in advance of services Massa will provide next year. f. Received a utility bill for $660 for 2019 services. g. Declared and immediately paid $360 in dividends to stockholders. Assets Cash Accounts Receivable 8,200 4,100 Long-Term Investments 6,400 Liabilities Accounts Payable Unearned Revenue 5,400 1,500 Long-Term Notes Payable 1,500 Stockholders' Equity Common Stock ($0.10 par value) Additional Paid-in Capital 615 3,485 Retained Earnings 6,200 Revenues Consulting Fee Revenue Interest Revenue Expenses Wages Expense Travel Expense Utilities Expense Rent Expense

Answer 1

Assets
Cash					Accounts Receivables
Beg bal	4,100	55,000	d		Beg Bal	8,200	6,100	b
a	48,900	360	g		a	10,400
b)	6,100
c	450
e	1,200
End bal	5,390				End bal	12,500
Long term investments					Accounts payable
beg bal	6,400				Beg bal		1,500
					d	700	660	f
End bal	6,400				End bal		1,460
Unearned Revenue					Long term notes payable
Beg bal		5,400					1,500
		1,200	e
End bal		6,600			End bal		1,500
Common stock					Addittional paid in capital
Beg bal		615					3,485
End bal		615			End bal		3,485
Retained Earnings					Consulting Fee Revenue
Beg bal		6,200			Beg bal		0
g	360						59,300	a
End bal		5,840			End bal		59300
Interest Revenue					Wage expense
Beg bal		0			Beg bal	0
		450	c		d	34,700
End bal		450			End bal	34700
Travel expense					Utilities expense
Beg bal	0				Beg bal	0
d	12,900				f	660
End bal	12900				End bal	660
Rent expense
Beg bal	0
d	6,700
End bal	6700