Total non current assets 133714 total assets 207000

TOTAL NON-CURRENT ASSETS
$133,714
TOTAL ASSETS
$207,000
LIABILITIES & SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
ACCOUNTS PAYABLE
$22,367
ACCRUED EXPENSES
$13,856
DEFERRED REVENUE
$7,435
TOTAL CURRENT LIABILITIES
$43,658
NON-CURRENT LIABILITIES
LONG-TERM DEBT
$16,960
DEFERRED REVENUE - NON-CURRENT
$2,625
OTHER NON-CURRENT LIABILITIES
$20,208
TOTAL NON-CURRENT LIABILITIES
$39,793
TOTAL LIABILITIES

$83,451
SHAREHOLDERS' EQUITY
COMMON STOCK
$19,764
RETAINED EARNINGS LESS DIVIDENDS AND STOCK RE-PURCHASE & OTHER
$66,748
NET INCOME
$37,037
TOTAL SHAREHOLDERS' EQUITY
$123,549
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$207,000
Result
Incorrect.
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. Implicit
Transactions
Introduction to Adjusting Journal Entries
Explicit Transactions
Until this point, the majority of the transactions we have seen in modules 1-3 have been
explicit transactions. These transactions were triggered by some sort of activity, event, or
transfer of resources (usually cash) from one party to another. Explicit transactions are often
accompanied by invoices, receipts, or other paper documentation that initiate the recording
of 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 the
customer, thus creating a paper trail. These ‘triggers’ prompted Bikram Yoga to record a
journal 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 insurance
coverage. When the insurance company received the cash from Cardullo’s, they likely
provided 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 in identifying 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 record
Implicit Transactions
Implicit transactions arise due to the nature of the accrual accounting method, which follows
the revenue recognition principle and the matching principle. Under this method, revenue
should be recognized in the period in which it is earned and realizable, not necessarily
when the cash is received. Expenses should be recognized in the period in which the
related revenue is recognized rather than when the related cash is paid. In order to do this,
we must make adjusting journal entries , which are implicit transactions. Implicit
transactions do not involve a specific triggering activity, event, or transfer of resources from
one party to another. Often, implicit transactions represent changes in value related to the
passage of time.