The following information was reported in a recent balance sheet issued by Microsoft Corporation. 1. The book

Question:

The following information was reported in a recent issued by Microsoft The book value of property and equipment is listed at $14.7 billion (net of depreciation). Related notes to the reveal that accumulated depreciation on property and equipment totals $17.6 billion.
2. Accrued compensation of $5.1 billion is listed as a liability.
3. Short-term unearned revenue is reported at $23.2 billion, whereas long-term unearned revenue is reported at $2.1 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 Four types of adjusting entries are illustrated in Exhibit 4-1. Explain which type of adjusting entry resulted in the company's accrued compensation figure.
c. Explain why Microsoft reports unearned revenue in its Why might the company report short-term unearned revenue separately from long-term unearned revenue?
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