Thompson Ltd must pay damages in relation to a drilling project environmental disaster. What would be included in the journal entry, assuming that the company created a provision for $15 000 two months ago but the actual damages were $16 550? DR Provision for environmental disaster 16 550 DR Loss on environmental disaster 16 550 DR Provision for environmental disaster 15 000 CR Cash 15 000

Thompson Ltd must pay damages in relation to a drilling project environmental disaster. What would be included in the journal entry, assuming that the company created a provision for $15 000 two months ago but the actual damages were $16 550? DR Provision for environmental disaster 16 550 DR Loss on environmental disaster 16 550 DR Provision for environmental disaster 15 000 CR Cash 15 000

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter3: The Basics Of Record Keeping And Financial Statement Preparation: Income Statement

Section: Chapter Questions

Problem 19E

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