C to rec ord admis s ions revenue from the 20 rac ing

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Unformatted text preview: teres t ex pens e for May on note pay able to National Bank ($300,000 × 12% × 1/12 = $3,000). c . To rec ord admis s ions revenue from the 20 rac ing day s in May ($910,000 × 20/70 = $260,000). http://ezto.mhecloud.mcg r aw- hill.com/hm_accounting .tpx?todo= pr intview 10/16 1/23/2014 10. Assig nment Pr int View aw ar d: 1 out of 1.00 point The following information was reported in a rec ent balanc e s heet is s ued by Mic ros oft Corporation: 1. The book value of property and equipment is lis ted at $3.35 billion (net of deprec iation). Related notes to the financ ial s tatements reveal that ac c umulated deprec iation on property and equipment totals $5.02 billion. 2. Ac c rued c ompens ation of $2.33 billion is lis ted as a liability . 3. Short-term unearned revenue is reported at $10.78 billion, whereas long-term unearned revenue is reported at $1.87 billion. The s hort-term figure will be c onverted to revenue within a y ear. The long-term figure will be c onverted to revenue over s everal y ears . Related notes to the financ ial s tatements reveal that the c ompany engages in multiy ear leas ing of its s oftware produc ts . a . Determine the original his toric al c os t of the property and equipment reported in Mic ros oft Corporation's balanc e s heet. (Ente r your a nsw e r in billions to tw o de cim a l pla ce s. Om it the "$" sign in your re sponse .) His toric al c os t $ 8.37 billion b. Four ty pes of adjus ting entries are illus trated in Ex hibit 4-1. Ex plain whic h ty pe of adjus ting entry res ulted in the c ompany 's ac c rued c ompens ation figure. Type III c. Identify the bas is by whic h Mic ros oft Corporation rec ords the revenue earned. Re a liz a tion ba sis W orksheet Learning Objective: 04-03 Prepare adjus ting entries to convert as s ets to expens es . Learning Objective: 04-05 Prepare adjus ting entries to accrue unpaid expens es . Learning Objective: 04-01 Explain the purpos e of adjus ting entries . Learning Objective: 04-04 Prepare adjus ting entries to convert liabilities to revenue. Learning Objective: 04-07 Explain how the principles of realization and m atching relate to adjus ting entries . The following information was reported in a rec ent balanc e s heet is s ued by Mic ros oft Corporation: 1. The book value of property and equipment is lis ted at $3.35 billion (net of deprec iation). Related notes to the financ ial s tatements reveal that ac c umulated deprec iation on property and equipment totals $5.02 billion. 2. Ac c rued c ompens ation of $2.33 billion is lis ted as a liability . 3. Short-term unearned revenue is reported at $10.78 billion, whereas long-term unearned revenue is reported at $1.87 billion. The s hort-term figure will be c onverted to revenue within a y ear. The long-term figure will be c onverted to revenue over s everal y ears . Related notes to the financ ial s tatements reveal that the c ompany engages in multiy ear leas ing of its s oftware produc ts . a . Determine the original his toric al...
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This note was uploaded on 01/23/2014 for the course ACC 111 taught by Professor Angela during the Fall '08 term at Delaware County CC.

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