Homework Answers
| Answer |
| Option B = is correct answer. |
| A company estimates that it will probably have to pay $2200,000 to the Department of Environment Protection for a chemical spill. |
| Explanation: |
| For a liability to be considered a contingent liability the amount must be estimated and must be probable. |
| Please Like ( positive Rating ) |
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Which one of the following would be considered a contingent liability? Select one: A. A company has 51,690,000 wort...
Which one of the following would be considered a contingent liability? Select one: 0 A. A...
Which one of the following would be considered a contingent liability? Select one: 0 A. A company owes $44,000 on inventories purchased on credit o B. The company has access to a line of credit with a bank in the amount of $576,000 O o C. A company estimates that it will probably have to pay $48,000 to the Department of Environment Protection for a chemical spill D. A company has $980,000 worth of bonds outstanding E. The company believes...
Which one of the following would be considered a contingent liability? A) A company estimates that...
Which one of the following would be considered a contingent liability? A) A company estimates that it will probably have to pay $75,000 to the EPA for a chemical spill. B) A company owes $35,000 on inventories purchased on credit. C) A company has access to a line of credit with a bank in the amount of $120,000. D) A company believes that it is reasonably possible it will lose a lawsuit and damages could be $100,000. E) None of...
Which of the following is a contingent liability? Select one: A. Notes payable X B. Credit...
Which of the following is a contingent liability? Select one: A. Notes payable X B. Credit guarantees C. Income tax payable D. Excise tax payable
Contingent Liabilities Several months ago, Cinnabar Chemical Company experienced a hazardous materials spill at one of...
Contingent Liabilities Several months ago, Cinnabar Chemical Company experienced a hazardous materials spill at one of its plants. As a result, the Environmental Protection Agency (EPA) fined the company $1,471,500. The company is contesting the fine. In addition, an employee is seeking $471,500 damages related to injuries sustained while cleaning up the spill. Lastly, a homeowner has sued the company for $229,000. The homeowner lives 15 miles from the plant but believes that the incident has reduced the home's resale...
Part 1: Accounting for Provision and Contingent Liability ChemX Inc, a chemical company, found out one...
Part 1: Accounting for Provision and Contingent Liability ChemX Inc, a chemical company, found out one week before its fiscal year end 12/31/X1 that its branch leaked significant amount of mercury (above safety level) at a plant site in Country A that requires a chemical company to buy and install specialized equipment (costing $500,000) to prevent mercury leakage. Country A also has legislation that requires a company to clean up mercury contamination. As of 12/31/X1, ChemX has not bought and installed...
1. Which one which one of the following items would NOT be considered cash a. Coins...
1. Which one which one of the following items would NOT be considered cash a. Coins b. Money orders e. Currency d. Postdated checks 2. A bank statement: a shows the activities that increased or decreased the depositor's account balance b. is a credit reference letter written by the depositor's bank. is a bill from the bank for services rendered. d lets a depositor know the financial position of the bank as of a certain date. 3. A NSF check...
Question: A company regularly purchases materials from a manufacturer on credit. Payments for these purchas... A company...
Question: A company regularly purchases materials from a manufacturer on credit. Payments for these purchas... A company regularly purchases materials from a manufacturer on credit. Payments for these purchases occur within the company’s operating cycle. They do not include interest and are established with an invoice outlining purchase details, credit terms, and shipping charges. Which current liability situation does this best describe? sales tax payable accounts payable unearned revenue income taxes payable A ski company takes out a $400,000 loan from...
Your company sells $200,000 of bonds for an issue price of $209,000. Which of the following...
Your company sells $200,000 of bonds for an issue price of $209,000. Which of the following statements is correct? Multiple Choice The bond sold at a price of 52.25, implying a discount of $9,000. The bond sold at a price of 104.50, implying a premium of $9,000. The bond sold at a price of 52.25, implying a premium of $9,000. The bond sold at a price of 104.50, implying a discount of $9,000 Sierra Blanca Co. is required to match...
On January 1, 2020, the ledger of Coronado Company contains the following liability accounts. Accounts Payable...
On January 1, 2020, the ledger of Coronado Company contains the following liability accounts. Accounts Payable Sales Taxes Payable Unearned Service Revenue $51,000 7,700 16,500 During January, the following selected transactions occurred. Jan. 5 Sold merchandise for cash totaling $20,520, which includes 8% sales taxes. 12 Performed services for customers who had made advance payments of $11,000. (Credit Service Revenue.) 14 Paid state revenue department for sales taxes collected in December 2019 ($7,700). 20 Sold 900 units of a new...
On January 1, 2015, the ledger of Accardo Company contains the following liability accounts. Accounts Payable...
On January 1, 2015, the ledger of Accardo Company contains the following liability accounts. Accounts Payable $55,480 Sales Taxes Payable 8,180 Unearned Service Revenue 15,920 During January, the following selected transactions occurred. Jan. 5 Sold merchandise for cash totaling $19,548, which includes 8% sales taxes. 12 Performed services for customers who had made advance payments of $10,270. (Credit Service Revenue.) 14 Paid state revenue department for sales taxes collected in December 2014 ($8,180). 20 Sold 900 units of a new...
Which one of the following would be considered a contingent liability? Select one: 0 A. A company owes $44,000 on inventories purchased on credit o B. The company has access to a line of credit with a bank in the amount of $576,000 O o C. A company estimates that it will probably have to pay $48,000 to the Department of Environment Protection for a chemical spill D. A company has $980,000 worth of bonds outstanding E. The company believes...
Which of the following is a contingent liability? Select one: A. Notes payable X B. Credit guarantees C. Income tax payable D. Excise tax payable
Contingent Liabilities Several months ago, Cinnabar Chemical Company experienced a hazardous materials spill at one of its plants. As a result, the Environmental Protection Agency (EPA) fined the company $1,471,500. The company is contesting the fine. In addition, an employee is seeking $471,500 damages related to injuries sustained while cleaning up the spill. Lastly, a homeowner has sued the company for $229,000. The homeowner lives 15 miles from the plant but believes that the incident has reduced the home's resale...
1. Which one which one of the following items would NOT be considered cash a. Coins b. Money orders e. Currency d. Postdated checks 2. A bank statement: a shows the activities that increased or decreased the depositor's account balance b. is a credit reference letter written by the depositor's bank. is a bill from the bank for services rendered. d lets a depositor know the financial position of the bank as of a certain date. 3. A NSF check...
Your company sells $200,000 of bonds for an issue price of $209,000. Which of the following statements is correct? Multiple Choice The bond sold at a price of 52.25, implying a discount of $9,000. The bond sold at a price of 104.50, implying a premium of $9,000. The bond sold at a price of 52.25, implying a premium of $9,000. The bond sold at a price of 104.50, implying a discount of $9,000 Sierra Blanca Co. is required to match...
On January 1, 2020, the ledger of Coronado Company contains the following liability accounts. Accounts Payable Sales Taxes Payable Unearned Service Revenue $51,000 7,700 16,500 During January, the following selected transactions occurred. Jan. 5 Sold merchandise for cash totaling $20,520, which includes 8% sales taxes. 12 Performed services for customers who had made advance payments of $11,000. (Credit Service Revenue.) 14 Paid state revenue department for sales taxes collected in December 2019 ($7,700). 20 Sold 900 units of a new...
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