amount of provision should Damn accrue

Q: Williams-Santana, Inc., is a manufacturer of high-tech industrial parts that was started in 2009 by…

A: SOLUTION- ACCOUNTING CHANGES AND ERROR CORRECTIONS REFER TO THE GUIDELINE PROVIDE TO REFLECT THESE…

Q: It is now December 31, 2017 (t = 0), and a jury justfound in favor of a woman who sued the city for…

A: The computation of amount of salary from years 2017 to 2020: Working note:

Q: Reporting a Legal Contingency On November 5, 2020, a Dune Corporation truck was in an accident with…

A: ASC 450 deals with "Contingencies" Levels of probability: ASC defines 3 levels of probability which…

Q: ter a wedding, ten people were hospitalized possibly as a result of food poisoning from products…

A: Contingent liabilities are liabilities that are probable to occur on a future date. They are not…

Q: . Gingerbread Corp was under a pending lawsuit by a customer suing for having slipped on a puddle of…

A: Contingent liability should be recorded in the income statement when there is a probability of loss…

Q: 6. Buwis Buhay Incorporated had several outstanding obligations on December 31, 2019. The brief…

A:

Q: Jonathan placed his new car in service on January 1 of the current year. He drove it 15,000 miles in…

A: As per Federal income tax if expense are incurred partly for business and partly for Personal…

Q: A factory owned by XYZ Inc. was destroyed by fire. XYZ inc. lodged an insurance claim for the value…

A: Insurance is a type of contract in which the insurance company promises to make the loss of the…

Q: 8. ROSE Company entered into a lawsuit on December 20, 2021, and recognized on the same date a…

A: What is meant by Current liability? The liability which the company needs to fulfill in normal…

Q: After a wedding in 2018, ten people died, possibly as a result of food poisoning from products sold…

A: IAS 37 Provisions, Contingent liabilities and contingent Assets lays states the accounting treatment…

Q: On February 5, 2021, an employee filed a P2,000,000 lawsuit against ABC Company for damages suffered…

A: Liabilities are the obligations or dues that needs to be paid out or settled by the business. It can…

Q: On November 24, 2020, 26 passengers on Windsor Airlines Flight No. 901 were injured upon landing…

A: Contingent liability: Contingent liability is the liability that might occur or not occur depending…

Q: SENTIENT AWARE Co. is engaged in logistics services. During the year, a warehouse was destroyed by…

A: We know that a provision is a liability that arises from past events and with an uncertain amount.…

Q: Use the following information for questions 6 and 7: On December 31, 2018, Garnel Co. is in…

A: Net book value of the Equipment = Original cost - Accumulated depreciation Gain (loss) on the…

Q: Use the following information for questions 6 and On December 31, 2018, Garnel Co. is in financial…

A: Net book value of the Equipment = Original cost - Accumulated depreciation Gain (loss) on the…

Q: Tender Foot, Inc., is involved in litigation regarding a faulty product sold in a prior year. The…

A: A contingent liability refers to the liabilities that may be incurred depending upon the occurrence…

Q: It is now December 31, 2008 (t = 0), and a jury just found in favor of a woman who sued the city for…

A: Here, Recovery of lost wages for pain and suffering is $200,000 Legal Expenses is $80,000 Salary…

Q: Fallon Company, a toy manufacturer that also operates several retail outlets, is preparing its…

A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve the first three…

Q: On November 25, 2020, an explosion occurred at a Brit company plant causing extensive property…

A: Given, Estimated liability = P3,500,000 Deductible clause = P500,000

Q: On November 5, 2008, a Breakthrough Company truck was in an accident with an auto driven by McAllen.…

A: Provision means amount that is put aside from profit for future probable loss and expenses.…

Q: On May 16, 2019, an entity purchased a fire insurance policy covering a property for a period of 2…

A: Solution: Insurance premium for 2 years = P16,800 Total period in 2019 = 7.5 months

Q: Beautiful Company is involved in litigation regarding a faulty product sold in a prior year during…

A: Contingent Liability. Contingent liabilities are those, the occurance of which depend on the happing…

Q: Scorcese Inc. is involved in a lawsuit at December 31, 2017. (a) Prepare the December 31 entry…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: Faisal has insured his vehicle with AXA insurance company. Throughout the year he experiences a loss…

A: Loss in January = 1577 Loss in May = 1284 Loss in December = 1102 Aggregate Deductible = 2574

Q: Dennis, the owner of Dennis Company, incurs the following expenses while away from home on a 3-week…

A: Travel Expenses for the trip =$800 + $1,800 + (50% × 740) +$ 40=$3,010   Thus, the amount Dennis may…

Q: August 2019, Baguio City brought an action against the company for polluting the surrounding rivers…

A: As per IFRS 37, A provision is an present obligation which arises from past event and outflow of…

Q: On November 5, 2021, MILES TRUCK RENTAL Co. was in an accident with an autom by MORALES. MILES…

A: Accruals allows that the expenses to be reported when they are incurred and not when paid and the…

Q: Sunrise Company provided the following information on December 31, 2019:   A personal injury…

A: Contingent liabilities are those liabilities or obligations whose possibilities to arise in future…

Q: In 2020, a business suffered the theft of a truck. Before the theft, the fair market value of the…

A: Casualty loss is the kind of loss which incurred suddenly, on an unexpected basis. Daily scrap…

Q: A truck owned and operated by Ward Company was involved in an accident with an auto driven by…

A: Provision is a liability where the amount or timing is uncertain. As per the standards, provision is…

Q: On January 5, 2022, a company received a P5,000,000-complaint from one of its employees who suffered…

A: As per the provisions of standard accounting principles,  the contingent…

Q: Polska SA, in preparation of its December 31, 2019, financial statements, is attempting to determine…

A: Journal entry is a record of financial transaction in the books of accounts maintained by an…

Q: On November 5, 2019, a Muntinlupa Company truck was in an accident with an auto driven by Murcia.…

A: Provision refers to funds that are set aside by the business with a view to cover uncertain future…

Q: 7. In its 2019 Profit and Loss, how much expense should be reported for the compensated absences? *…

A: IAS 19 "Employees benefit" deals with the concept of all the benefits that provided to employees…

Q: What amount will be disclosed on the company's notes to financial statements?

A: The determination of amount to be disclosed on the company's notes to financial statements is shown…

Q: On February 15, 2022, CHAS received notice that a client may sue company for $10 million. The…

A: A contingent liability seems to be a possible responsibility that might or might not materialize…

Q: On January 30, 2019, a suit was filed against Frazier Corporation under the Environmental Protection…

A:

Q: On December 31, 2019, Home Company was a defendant in a pending lawsuit. The suit arose from the…

A: Solution- An accrued liability of 500000 and would disclose a contingent liability for an additional…

Q: During 2018, Rosanna Company was sued by a competitor for P5,000,000 for infringement of a patent.…

A: Provision should be adjusted related to adjustable event.

Q: Sunshine Limited, in preparation of its December 31, 2020, financial statements, is attempting to…

A:

Q: On December 13, 2019, ABC Company was in an accident with an automobile driven by DEF. ABC received…

A: Contingent liability: Contingent liability means a liability that may occur depending on the outcome…

Q: During 2020, Marian Company was sued by a competitor for P5,000,000 for infringement of a patent.…

A: The word "accrued liability" is defined as a business expenditure that has been generated but has…

Q: C has initiated a lawsuit against Agency A for recovery of damages when accidentally one of the…

A: Contingent liability or contingent asset is a probable liability or asset for which the recognition…

Q: It is now December 31, 2018 (t = 0), and a jury just found in favor of a woman who sued the city for…

A: Present Value(PV) shows value of future amount in today’s terms by considering time factor as value…

Q: Do you want to make a double entry? On November 7, 2021, a fire broke out at the store, destroying…

A: There are three golden rules in accounting for recording the transaction : Debit what comes in ,…