ppt - Deferred Revenue and Prepaid Expense Example Example...

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Deferred Revenue and Prepaid Expense Deferred Revenue and Prepaid Expense Example Example Staples, Inc. 1.At fiscal year end January 31, 2009, Staples had received from customers $0 cash in advance for goods and services that will be provided in the next accounting period. Asset Source Transaction Financial Statement Impact Balance Sheet Cash + $0 (increases total assets). Unearned Revenues + $0 (increases total liabilities). Income Statement No impact when cash received in advance of providing services. Revenue is not yet earned according to the Revenue Recognition Principle. Statement of Cash Flows Operating activities: $0 cash inflow. Staples, Inc. 1.At fiscal year end January 31, 2009, Staples had paid $546,340,000 cash before receiving goods and services. Asset Exchange Transaction Financial Statement Impact Balance Sheet Cash $546,340,000, (decreases total assets). Prepaid expenses + $546,340,000 (increases total assets). Income Statement
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This note was uploaded on 02/16/2011 for the course BUAD 2040 taught by Professor Amyfrench during the Spring '08 term at Toledo.

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ppt - Deferred Revenue and Prepaid Expense Example Example...

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