The following account balances are taken from the December 31, 2015, financial statements of ABZ...
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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 $ 47,044 Cash 41,869 Accounts receivable 7,358 Interest expense 2,309 Accounts payable 5,020 Operating expenses 38,106 Unearned revenue 1,190 Equipment 18,347 Income tax expense 2,352 The following activities occurred in 2016: 1. Performed advertising services on account, $55,650. 2. Received cash payments on account, $10,500. 3. Received deposits from customers for advertising services to be performed in 2017, $2,600. 4. Made payments to suppliers on account, $5,020. 5. Incurred $45,500 of operating expenses; $39,450 was paid in cash and $6,050 was on account and unpaid as of the end of the year.
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