Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

تمرين 8

The following information was reported in a recent balance sheet issued by Microsoft Corporation :
1.he book value of property and equipment is listed at $90 billion (net of depreciation).elated notes to the financial statements reveal that accumulated depreciation on property and equipment totals $12 billion.
2.ccrued compensation of $2.9 billion is listed as a liability.
3.hort-term unearned revenue is reported at $18 billion, whereas long-term unearned revenue is reported at $1.5 billion.he short-term figure will be converted to revenue within a year.he long-term figure will be converted to revenue over several years.elated notes to the financial statements reveal that the company engages in multiyear leasing of its software products.
a.etermine the original historical cost of the property and equipment reported in Microsoft Corporation 's balance sheet.
b.our types of adjusting entries are illustrated in Exhibit 4-1 (page 144).xplain which type of adjusting entry resulted in the company's accrued compensation figure.
c.xplain why Microsoft Corporation reports unearned revenue in its balance sheet.hy might the company report short-term unearned revenue separately from long-term unearned revenue