Additional_Questions_on_Chapter_4

Additional_Questions_on_Chapter_4 - Ex. a. 4.4 Prepaid...

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Ex. 4.4 a. Prepaid Advertising is reported in the balance sheet as an asset. Customer Deposits are reported in the balance sheet as liabilities. b. Advertising Expense ……………………………………………… 18,000,00 0 Prepaid Advertising ……………………………………… 18,000,00 0 To record the mailing of brochures costing $18 million to print. c. Customer Deposits ……………………………………………… 90,000,00 0 Cruise Revenue ……………………………………………. 90,000,00 0 To record revenue earned for voyages completed. d. The adjusting entry that results in the most significant expense in the company’s income statement is the recording of depreciation expense on its cruise ships. Note to the instructor: In a recent income statement the company reported depreciation expense of nearly $300,000,000. Ex. 4.5 a. (1) Interest Expense …………………………………………………. 375 Interest Payable …………………………………………
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This note was uploaded on 12/30/2010 for the course BUSS Acct taught by Professor 201 during the Three '10 term at Notre Dame AU.

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Additional_Questions_on_Chapter_4 - Ex. a. 4.4 Prepaid...

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