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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.
1. Using the data from these T-accounts, calculate the amounts for the following on January 1, 2016.(Enter your answer in thousands, not in dollars.)
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
CALCULATE AMOUNT OF FOLLOWING ON JANUARY 1 :
Assets = (cash+account receivable+long term investment) = (4000+8600+6500)=19100
Liabilities = (account payable+unearned revenue+long term notes payable)= (1800+4900+1100)=7800
Shareholder’s equity = (Common stock+additional paid in capital+retained earnings) = (660+3740+6900)=11300