Preparation and Interpretation of Financial Statements
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Write My Essay For MeP4 The accounts of Frequent Ad, an agency that develops marketing materials for print, radio, and television, follow.
The agency’s first year of operations just ended on January 31, 2014.
Accounts Payable $19,400
Accounts Receivable 24,600
Advertising Service Revenue 159,200
A. Francis, Capital 5,000*
Cash 1,800
Equipment Rental Expense 37,200
Marketing Expense 4,500
Office Rent Expense 10,800
Salaries Expense 86,000
Salaries Payable 1,300
Supplies 900
Supplies Expense 19,100
Withdrawals 0
*Represents the initial investment by the owner.
REQUIRED
Prepare Frequent Ad’s income statement, statement of owner’s equity, and balance sheet.
2. Business Application Review the financial statements and comment on the financial challenges Frequent Ad faces.
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