Exercise 4.10 (Static) Adjusting Entries and the Balance Sheet (LO4-1, LO4-3, LO4-4, LO4-5, LO4-7) The following information was reported in a recent balance sheet issued by Microsoft Corporation. 1. The book value of property and equipment is listed at $23.8 billion (net of depreciation). Related notes to the financial statements reveal that accumulated depreciation on property and equipment totals $24.2 billion. 2. Accrued compensation of $5.9 billion is listed as a liability. 3. Short-term unearned revenue is reported at $34.1 billion, whereas long-term unearned revenue is reported at $10.4 billion. The short-term figure will be converted to revenue within a year. The long-term figure will be converted to revenue over several years. a. Determine the original historical cost of the property and equipment reported in Microsoft Corporation's balance sheet. b. Four types of adjusting entries are illustrated in Exhibit 4-1. Select which type of adjusting entry resulted in the company's accrued compensation figure. c. Identify the basis by which Microsoft Corporation records the revenue earned. Complete this question by entering your answers in the tabs below. short-term figure will be converted to revenue within a year. The long-term figure will be converted to revenue c a. Determine the original historical cost of the property and equipment reported in Microsoft Corporation's balance b. Four types of adjusting entries are illustrated in Exhibit 4-1. Select which type of adjusting entry resulted in the c compensation figure. c. Identify the basis by which Microsoft Corporation records the revenue earned. Complete this question by entering your answers in the tabs below. Required A Required B Required C Determine the original historical cost of the property and equipment reported in Microsoft Corporation's balance sheet. Historical cost billion type compensation figure. c. Identify the basis by which Microsoft Corporation records the revenue earned. Complete this question by entering your answers in the tabs below. Required A Required B Required C Four types of adjusting entries are illustrated in Exhibit 4-1. Select which type of adjusting entry resulted in the company's accrued compensation figure. The company's accrued compensation figure in < Required A Required C > a. Determine the original historical cost of the property and equipment reported in Microsoft Corporation's balance b. Four types of adjusting entries are illustrated in Exhibit 4-1. Select which type of adjusting entry resulted in the co compensation figure. c. Identify the basis by which Microsoft Corporation records the revenue earned. Complete this question by entering your answers in the tabs below. Required A Required B Required C Identify the basis by which Microsoft Corporation records the revenue earned. Record the revenue earned in Required B Required C >