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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 2016 (its fourth year), Massa’s T-account balances were as follows. Dollars are in thousands.
2. Enter the following 2016 transactions in the T-accounts: (Enter your answer in thousands, not in dollars.)
- Provided $58,100 in services to clients who paid $49,700 in cash and owed the rest on account.
- Received $6,400 cash from clients on account.
- Received $570 in cash as interest revenue on investments.
- Paid $34,500 in wages, $12,200 in travel, $6,800 in rent, and $1,000 on accounts payable.
- Received $1,300 in cash from clients in advance of services Massa will provide next year.
- Received a utility bill for $680 for 2016 services.
- Declared and paid $340 in dividends to stockholders.
Assets Cash Accounts Receivable Long-Term Investments 4,000 8,600 6,500 Liabilities Accounts Payable Unearned Revenue Long-Term Notes Payable 1,800 4,900 1,100 Stockholders’ Equity Common Stock ($.1O par value) Additional Paid-in Capital Retained Earnings 660 3,740 6,900 Revenues Consulting Fee Revenue Interest Revenue Expenses Wages Expense Travel Expense Utilities Expense Rent Expense