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Total non current assets 133714 total assets 207000

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TOTAL NON-CURRENT ASSETS$133,714TOTAL ASSETS$207,000LIABILITIES & SHAREHOLDERS' EQUITYCURRENT LIABILITIESACCOUNTS PAYABLE$22,367ACCRUED EXPENSES$13,856DEFERRED REVENUE$7,435TOTAL CURRENT LIABILITIES$43,658NON-CURRENT LIABILITIESLONG-TERM DEBT$16,960DEFERRED REVENUE - NON-CURRENT$2,625OTHER NON-CURRENT LIABILITIES$20,208TOTAL NON-CURRENT LIABILITIES$39,793TOTAL LIABILITIES
$83,451SHAREHOLDERS' EQUITYCOMMON STOCK$19,764RETAINED EARNINGS LESS DIVIDENDS AND STOCK RE-PURCHASE & OTHER$66,748NET INCOME$37,037TOTAL SHAREHOLDERS' EQUITY$123,549TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$207,000ResultIncorrect.Look above to see the color-highlighted items to see which were not correctly classified. The correct answer solution is shown below:
4.1.1 Explicit vs. ImplicitTransactionsIntroduction to Adjusting Journal EntriesExplicit TransactionsUntil this point, the majority of the transactions we have seen in modules 1-3 have beenexplicit transactions. These transactions were triggered by some sort of activity, event, ortransfer of resources (usually cash) from one party to another. Explicit transactions are oftenaccompanied by invoices, receipts, or other paper documentation that initiate the recordingof the transaction.Recall from 2.2.3, when Bikram Yoga sold six 3-month yoga memberships and received$2,100 in cash. Upon the receipt of cash, Bikram Yoga likely generated a receipt for thecustomer, thus creating a paper trail. These ‘triggers’ prompted Bikram Yoga to record ajournal entry in which they debited cash for $2,100 and credited deferred revenue for$2,100.Similarly, recall from 2.2.4, when Cardullo’s paid $2,400 in cash for 12 months of insurancecoverage. When the insurance company received the cash from Cardullo’s, they likelyprovided them with a document or receipt to serve as proof of insurance. These ‘triggers’prompted Cardullo’s to record a journal entry in which they debited prepaid insurance for$2,400 and credited cash for $2,400.Here are some key indicators to look for inidentifying explicit transactions:
(1) A transfer of resources, usually cash(2) Invoices, receipts or other paper documentation(3) A specific event or activity that clearly triggers a journal entry(4) Clarity regarding when to record and how much to recordImplicit TransactionsImplicit transactions arise due to the nature of the accrual accounting method, which followsthe revenue recognition principle and the matching principle.Under this method, revenueshould be recognized in the period in which it is earned and realizable, not necessarilywhen the cash is received. Expenses should be recognized in the period in which therelated revenue is recognized rather than when the related cash is paid. In order to do this,we must makeadjusting journal entries, which are implicit transactions. Implicittransactions do not involve a specific triggering activity, event, or transfer of resources fromone party to another. Often, implicit transactions represent changes in value related to thepassage of time.

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Term
Spring
Professor
Dr.Wright
Tags
Balance Sheet, Income Statement, Expense, Generally Accepted Accounting Principles

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