Question

Required Informatlon IThe following information applies to the questions displayed below] The following account balances are taken from the December 31, 2015, financlal statements of ABZ Advertising Company. The company uses accrual basis accounting. Advertising revenue Cash Accounts recevable Interest expense Accounts payable Operating expenses Unearned revenue Equipment Income tax expense $57,700 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. Recelved cash payments on account, $13,.200. 3 Recelved 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 $7,450 was on account and unpald as of the end of the year

Answer 1

1

Answer is $15083

Workings

Cash	51353
Add Cash Payment received on account	13200
Add Advance received	4400
Less Account Payable paid	-5470
Less Operating Expense Paid	-48400
Cash Account Balance December 31 2016	15083

2

Answer is $68250

Performed service on account is revenue for the current period