Given:
<span>short-term unearned revenue of $23,223 million.
</span><span>total revenues of $93,580 million.
</span><span>assume that microsoft recognized $2,000 million of unearned revenue as revenue during the year
We only consider two figures in this problem. 1) 23,223 million short-term unearned revenue and the 2,000 million unearned revenue recognized as revenue for this year.
There are two ways of recognizing the unearned revenue and its corresponding adjusting entry is dependent on its initial recognition.
Liability method of Recording Unearned Revenue: (in millions)
Debit Credit
Cash 23,223
Unearned Revenue 23,223
Adjusting entry:
Unearned Revenue 2,000
Service Income 2,000
Income Method of Recording Unearned Revenue
Cash 23,223
Service Income 23,223
Adjusting Entry
Service Income 21,223
Unearned Income 21,223</span>
Answer: The management requires the overhead rates before the end of the year
Explanation:
The overhead rates are used because the management requires the overhead rates before the end of the year and the predetermined overhead rates are helpful in keeping records very well. The overhead rates are more accurate in results also.
Answer:
A) costs of direct labor would be 50% lower
Explanation:
Based on the information provided within the question it can be said that in this scenario the cost of direct labor would be about 50% lower than in the current country of production. That is because the average amount that the workers get paid in that country are 50% lower, therefore the company will be paying 50% less for labor in that country as opposed to where they are now.
Answer:
a. $1553
b. $1,303
c. $5,618
Explanation:
SUTA is 5.4% for employees if the total salary is below $7,000
In the provided scenario the salary is less than that as $7,000/6 employees = $1,167 each employee. The maximum salary is $1,100 in the scenario.
a.
SUTA = $7,000 * 5.4%
SUTA = $378
Retirement Fund = $75
Gross Salary = $1,100
$378 + $75 + $1,100 = $1553
b.
SUTA = $7,000 * 5.4%
SUTA = $378
Retirement Fund = $75
Gross Salary = $850
$378 + $75 + $850 = $1,303
c.
SUTA = $7,000 * 5.4%
SUTA = $378 * 6 employees
SUTA = $2,268
Retirement Fund = $75 * 6 employees
Retirement Fund = $450
Gross Salary = $150 * 4 employees
Gross Salary = $600
Gross Salary = $1,150 * 2 employees
Gross Salary = $2,300
Total Gross Salary = $2,900
Total Gross Pay = $2,268 + $450 + $2,900
Total Gross Pay = $5,618
The purpose of this category of interview questions is to obtain factual information about the interviewee.