Response to the following questions:
1. At the end of the current year, $11,310 of fees have been earned but have not been billed to clients.
a. What is the adjustment to record the accrued fees? Indicate each account affected, whether the account is increased or decreased, and the amount of the increase or decrease.
b. If the cash basis rather than the accrual basis had been used, would an adjustment have been necessary? Explain.
2. Barnes & Noble Inc. reported Property, Plant, and Equipment of $1,677,836,000 and Accumulated Depreciation of $991,187,000 at January 31, 2004.
a. What was the book value of the fixed assets at January 31, 2004?
b. Would the book values of Barnes & Noble's fixed assets normally approximate their fair market values?