Question

S i il enployees Record the entry for these b pad) be reported on the current balance sheet? of the retirement benefits are not to be paid for five accrued but und betwefits on December paid for five years, wow should this mom i sa Exercise 11-14 Accounting for contingent liabilities Company should record a lability, th) discione in For each separate situation, indicate whether Crux Company notes, or have no disclosure 1. Cruz Company a t the S1 och supplier. It is dewalt on the det 2. A disgruntled employee is wie Cruz Company, Legal advisors need to pay damages, but the amount y estimated supplier. It is not probable that the supplier will employee is suing Cruz Company visers believe that the com Exercise 11-15 Preparing a balance sheet C1 P2 P3 Selected accounts from Lue Co'sadiusted trial balings for the year ended De classified balance sheet balance for the year ended December 31 follow. Prepare a Equipment $20.000 40,000 molye federal income the payable Ternamentos payable 200 125

Answer 1

1	b.disclose in notes (this amount is a contingent liability)
2.	b.disclose in notes (this amount is a contingent liability)

Contingent liabilities will be recorded as a liability only when it is probable that there will be cash outflows.