E$3-10$ Adjustment for Unearned Fees

Obj. $3$

The balance in the unearned fees account, before adjustment at the end of the year, is $$1,375,000.$ What is the adjustment if the amount of unearned fees at the end of the year is $$1,100,000?$ Indicate each account affected, whether the account is increased or decreased, and the amount of the increase or decrease.

E$3-11$ Adjustment for Unearned Revenue

Obj. $3$

For a recent year, Microsoft Corporation $($MSFT$)$ reported short$-$term unearned revenue of $$34,102$ million. For the same year, Microsoft also reported total revenues of $$89,950$ million.

a$.$ Assuming that Microsoft recognized $$4,000$ million of unearned revenue as revenue during the year, what entry for unearned revenue did Microsoft make during the year? Indicate each account affected, whether the account is increased or decreased, and the amount of the increase or decrease.

b$.$ What percentage of total revenues is the short$-$term unearned revenue? Round to one decimal place.