Question

[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 Cash Accounts receivable Interest expense Accounts payable Operating expenses Unearned revenue Equipment Income tax expense $ 57700 51,353 8,375 2,516 5,470 46,737 1,460 22,503 2.885 The following activities occurred in 2016: 1. Performed advertising services on account, $68,250, 2. Received cash payments on account, $13,200. 3. Received deposits from customers for advertising services to be performed in 2017. $4,400. 4. Made payments to suppliers on account, $5,470. 5. Incurred $55,850 of operating expenses: $48,400 was paid in cash and $7450 was on account and unpaid as of the end of the year.

Answer 1

Answer is $63425.

Accounts receivable 132OD Beg. Balance 8375 2. cash 1. Service revenue. 68250 End Balance [Balancing Fisione 63425. 176625 76625 Alternative method Balance of Account Receiva slep = Begining balance of accounts receive slep + Service provided during the 2016 on cash relive received from Accounts Receivables account 8375 +68250 - 1320D $63425

have effect on accounts Receivable. 2 4 only transaction I and does not have any effect on Other transactions from 3 do 5 accounts Receivable. Journal entries 68250 1. Accounts Recenasle 68250 Service revenue 2 cash 13200 13200 Accounts recevale 3. Cash 4400 BARCA uneenned revenue 4400 4. Accounts payable 5470 Cash 5470 5. 55850 operating expenses cash 48400 Allounts payable 7450