HW 5 explanations - Part 2 Balance Sheet Accounts Interest...

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Unformatted text preview: Part 2 Balance Sheet Accounts: Interest Payable increased by 142.11%. This would happen because more notes were signed during 2010, increasing the corporation's overall liabilities. Therefore, there is more interest on these notes due to the fact that there are more overall notes, increasing the corporation's interest payable. Unearned Revenue increased by 97.06%. This would happen because the corporation added a new product line to its production sales, and received payment for that product before they were able to supply another company with that product. Income Statement Accounts: Interest Expense increased by 142.11%, which is the same as the increase of interest payable. This is due to the fact that more notes were being signed in 2010; therefore more interest was accrued on these notes, leading to more overall interest expense. Depreciation Expense increased by 79.49%. Since the corporation acquired more equipment, and maybe even a new building for their new product line, there is more equipment and property...
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This note was uploaded on 03/12/2012 for the course ACC 201 taught by Professor Bokmier during the Fall '10 term at Michigan State University.

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