EXERCISE 18-3 (10-15 minutes)

(a)   Cash (2004 slips) (300 X $900)..............................      270,000                 Dock Rent Revenue.........................................                           270,000         Cash (2005 slips) [200 X $900 X (1.00 – .05)]......      171,000                 Unearned Revenue (current)..........................                           171,000         Cash (2006 slips) [60 X $900 X (1.00 – .25)]........        40,500  ...