Prepare frequent ads income statement and balance sheet

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Reference no: EM13913550

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

Income Taxes Payable

$ 560

Accounts Receivable

24,900

Marketing Expense

6,800

Advertising Service Revenue

165,200

Office Rent Expense

13,500

Cash

1,800

Salaries Expense

86,000

Common Stock

5,000

Salaries Payable

1,300

Dividends

0

Supplies

1,600

Equipment Rental Expense

37,200

Supplies Expense

19,100

Income Taxes Expense

560

 

 

Required:

1. Prepare Frequent Ad's income statement, statement of retained earnings, and balance sheet.

2. Business application- Review the financial statements and comment on the financial challenges Frequent Ad faces.

Reference no: EM13913550

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