Homework Answers
Ans:
A). here in this case , it is said that it is not probable that the supplier will default on the debt and it is probable , no adjusting entry is required , however in financial statements it will be disclosed as contingent liabilities.
B). here in this case, it is mentioned that the company will probably need to pay damages,so it will be disclosed as contingent liability in financial statements.
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Exercise 9-13 Accounting for contingent liabilities LO C3 Listed below are a few transactions and events...
please answer 8&9 00 Exercise 9-12 Accounting for estimated liabilities LO P4 Listed below are a...
please answer 8&9
00 Exercise 9-12 Accounting for estimated liabilities LO P4 Listed below are a few transactions and events of Maxum Company - 1. Employees eam vacation pay at a rate of one day per month. During December 24 employees qualify for one vacation day cach. Thelt average daily wage is $10 per employee 2. During December, Maxum Company sold 3700 units of a product that carries a 60-day warranty, December sales for this product total $133,000. The company...
I need help with the solution and explanation in the whole question Please and Thank you....
I need help with the solution and explanation in the whole
question Please and Thank you.
Connect Homework - Chapter 9 Saved Help Save & Exit Submit 33 Exercise 9-14 Accounting for contingent liabilities LO C3 For each separate situation, indicate whether Cruz Company should (a) record a liability, (b) disclose in notes, or (c) have no disclosure 1 points 1. Cruz Company guarantees the $119,000 debt of a supplier. It is not probable that the supplier will default on...
Exercise 9-12 Accounting for estimated liabilities LO P4 Listed below are a few transactions and events...
Exercise 9-12 Accounting for estimated liabilities LO P4 Listed below are a few transactions and events of Maxum Company. Employees earn vacation pay at a rate of one day per month. During December, 36 employees qualify for one vacation day each. Their average daily wage is $250 per employee. During December, Maxum Company sold 3,900 units of a product that carries a 60-day warranty. December sales for this product total $129,000. The company expects 8% of the units to need...
i need help with c and d Exercise 10-18 Various liabilities 102,4 CHECK FIGURE: C. HST...
i need help with c and d
Exercise 10-18 Various liabilities 102,4 CHECK FIGURE: C. HST Payable = $275,000 Superior Skateboard Company, locutin Ontario, is preparing adjusting entries at December 31, 2020. An analysis reveals the following: a. During December, Superior sold 0,500 skateboards that carry a 60-day warranty. The skateboard sales totalled $390,000. The company expects 8% of the skateboards will need repair under warranty and it estimates that the average repair cost per unit will be $38, b....
Superior Skateboard Company, located in Ontario, is preparing adjusting entries at December 31, 2020. An analysis...
Superior Skateboard Company, located in Ontario, is preparing adjusting entries at December 31, 2020. An analysis reveals the following: During December, Superior sold 7,600 skateboards that carry a 60-day warranty. The skateboard sales totalled $401,000. The company expects 9% of the skateboards will need repair under warranty and it estimates that the average repair cost per unit will be $28. A disgruntled employee is suing the company. Legal advisers believe that it is probable that Superior will have to pay...
Exercise 9-12 Accounting for estimated liabilities LO P4 Listed below are a few transactions and events of Maxum Company...
Exercise 9-12 Accounting for estimated liabilities LO P4 Listed below are a few transactions and events of Maxum Company. Employees earn vacation pay at a rate of one day per month. Maxum estimated and must expense $5,100 of accrued vacation benefits for the year. During December, Maxum Company sold 3,400 units of a product that carries a 60-day warranty. December sales for this product total $127,000. The company expects 7% of the units to need warranty repairs, and it estimates...
E9-9 (Static) Reporting Contingent Liabilities LO 9-4 James Soda is a regional soda manufacturer. James is currently fa...
E9-9 (Static) Reporting Contingent Liabilities LO 9-4 James Soda is a regional soda manufacturer. James is currently facing three lawsuits, summarized below: Required: How should James report each of the lawsuits in its financial statements and footnotes? Probability of future economic sacrifice A customer is suing James for $1 million because he claims to have found a piece of glass in his soda. Management deems the 4. probability that James will lose the lawsuit and have to pay $1 million...
Superior Skateboard Company, located in Ontario, is preparing adjusting entries at December 31, 2020. An analysis...
Superior Skateboard Company, located in Ontario, is preparing adjusting entries at December 31, 2020. An analysis reveals the following a. During December, Superior sold 6,900 skateboards that carry a 60 day warranty. The skateboard sales totalled $394,000. The company expects 5% of the skateboards will need repair under warranty and it estimates that the average repair cost per unit will be $42 b. A disgruntled employee is suing the company legal advisers believe that it is probable that Superior will...
Exercise 11-12 Accounting for estimated liabilities LO P4 Listed below are a few transactions and events...
Exercise 11-12 Accounting for estimated liabilities LO
P4
Listed below are a few transactions and events of Maxum
Company.
Employees earn vacation pay at a rate of one day per month.
During December, 39 employees qualify for one vacation day each.
Their average daily wage is $280 per employee.
During December, Maxum Company sold 4,900 units of a product
that carries a 60-day warranty. December sales for this product
total $121,000. The company expects 5% of the units to need...
Part 3 Contingent liabilities. (10 points possible) Below are three independent situations. 1. In August, 2020...
Part 3 Contingent liabilities. (10 points possible) Below are three independent situations. 1. In August, 2020 a worker was injured in the factory in an accident partially the result of his own negligence. The worker has sued Simon Co. for $800,000. Counsel believes it is reasonably possible that the outcome of the suit will be unfavorable and that the settlement would cost the company from $250,000 to $500,000. 2. A suit for breach of contract seeking damages of $1,200,000 was...
please answer 8&9
00 Exercise 9-12 Accounting for estimated liabilities LO P4 Listed below are a few transactions and events of Maxum Company - 1. Employees eam vacation pay at a rate of one day per month. During December 24 employees qualify for one vacation day cach. Thelt average daily wage is $10 per employee 2. During December, Maxum Company sold 3700 units of a product that carries a 60-day warranty, December sales for this product total $133,000. The company...
I need help with the solution and explanation in the whole
question Please and Thank you.
Connect Homework - Chapter 9 Saved Help Save & Exit Submit 33 Exercise 9-14 Accounting for contingent liabilities LO C3 For each separate situation, indicate whether Cruz Company should (a) record a liability, (b) disclose in notes, or (c) have no disclosure 1 points 1. Cruz Company guarantees the $119,000 debt of a supplier. It is not probable that the supplier will default on...
i need help with c and d
Exercise 10-18 Various liabilities 102,4 CHECK FIGURE: C. HST Payable = $275,000 Superior Skateboard Company, locutin Ontario, is preparing adjusting entries at December 31, 2020. An analysis reveals the following: a. During December, Superior sold 0,500 skateboards that carry a 60-day warranty. The skateboard sales totalled $390,000. The company expects 8% of the skateboards will need repair under warranty and it estimates that the average repair cost per unit will be $38, b....
E9-9 (Static) Reporting Contingent Liabilities LO 9-4 James Soda is a regional soda manufacturer. James is currently facing three lawsuits, summarized below: Required: How should James report each of the lawsuits in its financial statements and footnotes? Probability of future economic sacrifice A customer is suing James for $1 million because he claims to have found a piece of glass in his soda. Management deems the 4. probability that James will lose the lawsuit and have to pay $1 million...
Superior Skateboard Company, located in Ontario, is preparing adjusting entries at December 31, 2020. An analysis reveals the following a. During December, Superior sold 6,900 skateboards that carry a 60 day warranty. The skateboard sales totalled $394,000. The company expects 5% of the skateboards will need repair under warranty and it estimates that the average repair cost per unit will be $42 b. A disgruntled employee is suing the company legal advisers believe that it is probable that Superior will...
Exercise 11-12 Accounting for estimated liabilities LO
P4
Listed below are a few transactions and events of Maxum
Company.
Employees earn vacation pay at a rate of one day per month.
During December, 39 employees qualify for one vacation day each.
Their average daily wage is $280 per employee.
During December, Maxum Company sold 4,900 units of a product
that carries a 60-day warranty. December sales for this product
total $121,000. The company expects 5% of the units to need...
Part 3 Contingent liabilities. (10 points possible) Below are three independent situations. 1. In August, 2020 a worker was injured in the factory in an accident partially the result of his own negligence. The worker has sued Simon Co. for $800,000. Counsel believes it is reasonably possible that the outcome of the suit will be unfavorable and that the settlement would cost the company from $250,000 to $500,000. 2. A suit for breach of contract seeking damages of $1,200,000 was...
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