Northstar Enterprises Had the Following Balances as of December 31,2011

question 12

Essay

Northstar Enterprises had the following balances as of December 31,2011:
$\begin{array}{ll}\text { Accounts Receivable } & \$ 21,600 \\\text { Accounts Payable } & \$ 14,300 \\\text { Unearned Revenue } & \$ 6,100\end{array}$
During 2012,the following activity occurred:
1.$73,100 was paid by customers in advance for work to be performed by the company.The balance in the unearned revenue account as of December 31,2012,was $7,700.
2.Credit sales were $497,100.As of December 31,2012,the accounts receivable balance was $32,900.
3.Accounts payable is solely attributable to the acquisition of merchandise inventory on account.Credit purchases of merchandise inventory during 2012 were $291,000.The balance in accounts payable as of December 31,2012,was $13,100.
Required:
a.What was the amount of cash received from credit customers in 2012?
b.How much cash was paid by the company for the credit purchase of merchandise inventory related to its accounts payable in 2012?
c.How much sales revenue was recognized by the company in 2012,related to the work performed for customers who paid in advance?

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Definitions:

Straight-Line Depreciation

A method of calculating the depreciation of an asset, distributing its cost evenly across its useful life.

Depreciable Cost

The cost of a fixed asset minus its estimated salvage value, which is the basis for calculating depreciation expense.

Useful Life

The expected period over which an asset is anticipated to be useful and productive for its intended purpose.

Residual Value

The estimated value that an asset will have at the end of its useful life, also known as salvage value.