Required information
E3-18 (Algo) Analyzing the Effects of Transactions Using T-Accounts and Interpreting the Net Profit Margin Ratio as a Financial Analyst LO3-4, 3-6
[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:
Assets
Cash | |
3,700 |
Accounts Receivable | |
8,800 |
Long-Term Investments | |
6,800 |
Liabilities
Accounts Payable | |
1,600 |
Unearned Revenue | |
5,100 |
Long-Term Notes Payable | |
1,500 |
Stockholders’ Equity
Common Stock ($0.10 par value) | |
690 |
Additional Paid-in Capital | |
3,910 |
Retained Earnings | |
6,500 |
Revenues
Consulting Fee Revenue | |
Interest Revenue | |
Expenses
Wages Expense | |
Travel Expense | |
Utilities Expense | |
Rent Expense | |
E3-18 Part 3
3. Compute ending balances in the T-accounts to determine amounts for the following on December 31, 2019: (Enter your answers in thousands, not in dollars.)
E3-18) T-Accounts: | |||
DEBIT | AMOUNT $ | CREDIT | AMOUNT $ |
Cash a/c | |||
OB | 3700 | d | 34100 |
a | 49400 | d | 12800 |
b | 6100 | d | 6900 |
c | 510 | d | 800 |
e | 1600 | g | 350 |
CB | 6360 | ||
Accounts Receivable a/c | |||
OB | 8800 | b | 6100 |
a | 10600 | CB | 13300 |
LT Investments a/c | |||
OB | 6800 | ||
Accounts payable a/c | |||
d | 800 | OB | 1600 |
CB | 1490 | f | 690 |
Unearned Revenue a/c | |||
CB | 6700 | OB | 5100 |
e | 1600 | ||
LT Notes payable a/c | |||
OB | 1500 | ||
Common stock a/c | |||
OB | 690 | ||
Additional paid in capital a/c | |||
OB | 3910 | ||
Retained Earnings a/c | |||
OB | 6500 | ||
Service revenue a/c | |||
a | 60000 | ||
Interest revenue a/c | |||
c | 510 | ||
Wages expense a/c | |||
d | 34100 | ||
Travelling expense a/c | |||
d | 12800 | ||
Rent expense a/c | |||
d | 6900 | ||
Utilities expense a/c | |||
f | 690 | ||
Dividends a/c | |||
g | 350 |
Trial Balance: | ||
Acc. Titles | Debit $ | Credit $ |
Cash | 6360 | |
AR | 13300 | |
LT Investment | 6800 | |
AP | 1490 | |
Unearned rev. | 6700 | |
LT Notes Pay. | 1500 | |
CS | 690 | |
Addi Paid in Capi | 3910 | |
RE | 6500 | |
Serv. Rev | 60000 | |
Inter. Rev | 510 | |
Wage exp | 34100 | |
Travel exp | 12800 | |
rent exp. | 6900 | |
utilities exp.' | 690 | |
Dividend | 350 | |
Total | 81300 | 81300 |
Income Statement: | |
Amount $ | |
Serv. Rev | 60000 |
Inter. Rev | 510 |
Total Revenues | 60510 |
Less:Expenses: | |
Wage exp | 34100 |
Travel exp | 12800 |
rent exp. | 6900 |
utilities exp.' | 690 |
Total Expenses | 54490 |
Net Income | 6020 |
Balance Sheet: | |
Assets: | Amount $ |
Cash | 6360 |
AR | 13300 |
Current assets | 19660 |
LT Investment | 6800 |
Total Assets | 26460 |
Liabilities & SH Eq. | Amount $ |
AP | 1490 |
Unearned rev. | 6700 |
Current Liabilities | 8190 |
LT Notes Pay. | 1500 |
Total Liabilities | 9690 |
CS | 690 |
Addi Paid in Capi | 3910 |
RE | 6500 |
Add:net Income | 6020 |
Less:Dividend | -350 |
total Liab. & Sh Eq. | 26460 |
Required information E3-18 (Algo) Analyzing the Effects of Transactions Using T-Accounts and Interpreting the Net Profit...
Required information E3-18 (Algo) Analyzing the Effects of Transactions Using T-Accounts and Interpreting the Net Profit Margin Ratio as a Financial Analyst LO3-4, 3-6 [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...
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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...
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...
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...
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