Microsoft Accounting Case Solution

2. On the basis of the response to Question 1, discuss the revenue recognition accounting literature

a. Book value equals the $800,000 the founder of the firm has contributed in tangible assets. Market value equals the value of his patent plus the value of the production plant: $50,000,000 + $800,000 = $50,800,000.

Microsoft earned more on the dollar of their net income for each dollar of the stockholder's equity.

1. As of December 31, 2011, what amount, if any, of sales due should be recognized in eVade’s financial statements?

Over the past few years the economy in the United States has taken a downturn. It has been so bad, that some businesses were not able to survive. However, Microsoft Corporation (Microsoft) was not one of those companies. The fiscal strength of Microsoft played a large part in providing the company with the ability and resources to survive the difficult financial markets (Microsoft Corporation, 2009). As a

d. For each item in quotations, provide the year-end total disclosed in Darden’s 2007 income statement. Write a journal entry to record the activity for the year. Assume that the company recorded a single (summary) journal entry.

| d. If the company lost money in 2000, they must have paid a dividend.

3) How much of Intel’s 2012 total provision for income taxes was current tax expense, and how much was deferred tax expense?

D. there is no way to determine what has happened to supply and demand with this information

d. The alternative is accounting profit, it estimates BRK by its size, by the performance of the company.

3. How would you judge whether a firm is likely to face revenue recognition problems?

Microsoft, a key figure in the technology industry, presents many key products and services that help the technology industry grow to where it has gotten. Microsoft is a corporation that is the NASDAQ market. The company provides products and services in the technology industry. The products highlighted for the 2015 fiscal year for Microsoft were the Surface family, Microsoft Office 365, and Xbox console to name a few. Microsoft has a retail sector that have both online and in store locations, with addition to business to business commerce. In the SEC 10-K analysis for the fiscal year ending on June 30, 2015, Microsoft includes key financial features to include nonmanufacturing (selling and administrative expenses) to go along with the

I have read and understand the plagiarism policy as outlined in the syllabus and the sections in the Student Bulletin relating to the IWU Honesty/Cheating Policy. By affixing this statement to the title page of my paper, I certify that I have not cheated or plagiarized in the process of completing this assignment. If it is found that cheating and/or plagiarism did take place in the writing of this paper, I understand the possible consequences of the act/s, which could include expulsion from Indiana Wesleyan University.

3. Refer to the monthly sales forecasts given in the first Table. Assume that these amounts are realized and that the firm’s customers pay exactly as predicted.

Attached is an Income Statement from 2005 to 2007 (Microsoft Corporation Annual Report, 2008). As you can see, revenues and net income have continued to increase over the years. Earnings per share have increased as well. This shows that Microsoft is in a good financial standing. This means they are able to pay their shareholders and increase what they