Create T-accounts for the following accounts: accounts receivable, deferred revenue (combine the current and non-current deferred revenue accounts into one T-account), and net sales. Enter the opening balance (as at September 26, 2009) and closing balance (as at September 25, 2010) for the two balance sheet T-accounts and enter the ending balance for the Net sales T-account.

i) Assume that the current portion of deferred revenue is recognized in the next fiscal year. Prepare the fiscal 2010 journal entry to record Net sales for previously deferred revenue. Post the transaction to the T-accounts.

ii) Assume that fiscal 2010 sales transactions included $44,000 of sales on account (in millions) with all other sales conducted in cash. Prepare the fiscal 2010 journal entry to record the 2010 sales transactions, including any portion deferred to a future period. Post the transaction to the T-accounts.

iii) Prepare the journal entry to record cash collections during 2010 for sales made on account

APPLE INC CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except share amounts which are reflected in thousands and per share amounts) Three years ended September 25 2010 Net sales Cost of sales 65,225 42,905 37,491 25,683 24,294 Gross margin 25,684 Operating expenses: Research and development Selling, general and administrative 1,333 4.149 482 11,740 326 12,066 1,782 1,109 Total operating expenses 4,870 8,327 620 8,947 Operating income Other income and expense Income before provision for income taxes Provision for income taxes Net income Earnings per common share 18,385 155 18,540 Basic Diluted 15.41 $ 9.22 6.94 s 15.15 9.08S 6.78 Shares used in computing earnings per share Basic Diluted 909,461 893,016 881,592 924,712 907,005 902,139 See accompanying Notes to Consolidated Financial Statements