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Nesterboy [21]
3 years ago
6

Away Travel filed suit against West Coast Travel seeking damages for copyright violations. West Coast Travel's legal counsel bel

ieves it is reasonably possible that West Coast Travel will settle the lawsuit for an estimated amount in the range of $100,000 to $200,000, with all amounts in the range considered equally likely. How should West Coast Travel report this litigation?
Business
1 answer:
Zepler [3.9K]3 years ago
7 0

Answer:

As a disclosure only. No liability is reported

Explanation:

According to the International Accounting Standard IAS 37 Provisions, Contingent Liabilities and Contingent Assets, contingent liability can only be recorded if the likelihood of recording of the loss is reasonably probable and in this case the chances of occurence of the liability is reasonably possible which must not be recorded. The only effect would be disclosing the litigation matter and not including the liability amount that will arise if it goes wrong.

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Blair Madison Co. issues $1.9 million of new stock and pays $281,000 in cash dividends during the year. In addition, the company
saw5 [17]

Answer:

$759,000

Explanation:

Given that,

New stock issues = $1.9 million

Dividend paid in cash during the year = $281,000

The net cash flow provided by financing activities is:

= Million new stock issue increase in cash - Cash dividend decrease in cash + Increase in cash - Decrease in cash

= $1,900,000 - $281,000 + $1,590,000 - $2,450,000

= $759,000

6 0
3 years ago
On June 30, Collins Management Company purchased land for $460,000 and a building for $520,000, paying $360,000 cash and issuing
sammy [17]

Answer:

See Explanation

Explanation:

(a)

Journal entry to record the transaction is,

Particulars                                                                  Debit      Credit

Land and Building (460000 + 520000)                 $980,000

Cash Paid                                                                           $360,000

Mortgage Payable (980,000 - 360,000)                         $620,000

We assume that 4% interest is chargeable each semiannual payment and that each subsequent payment is charged 4% on the remaining amount of principal minus any preceding principal payments.

(b)

First installment = Principal + Interest payable

= 31,000 + (620,000 * 0.04) = $55,800

(c)

Second payment = 31,000 + [(620,000 - 31000) * 0.04] = $54,560

Since the chart of accounts is not provided you can confirm the the account headings.

Hope that helps.

5 0
3 years ago
Who wants free coins!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
LUCKY_DIMON [66]

Answer:

MEEEEEEE

Explanation:

TYSM

3 0
3 years ago
Read 2 more answers
A new truck model's television advertisements use images of the vehicle navigating over rough terrain. A popular rock song plays
I am Lyosha [343]
Its transfer because an example of that is "people buying a product because they admire the symbol" 
plus i just took a quiz on that and that was the right answer for me, im sorry if its wrong. 
5 0
3 years ago
Read 2 more answers
Golden Eagle Company prepares monthly financial statements for its bank. The November 30 and December 31 adjusted trial balances
Mila [183]

Answer:

Explanation:

We solve by taken into consideration the transaction on a,b,c and d. This will allow us to get the unadjusted ending balance of each account we then compare it to be the adjusted balance on december 31 to find the adjustments made.

a) For supplies account:

supplies, November 30                                                           $2,000

purchase of additional supply doing December                      4,500

                                                                                                   -----------

supplies, December 31(unadjusted)                                       $6,500

Adjustment squeeze                                                                  3,000

                                                                                                  -------------

supllies december 31                                                                 3,500

The adjustment is squeeze meaning it was used as force balancing. Adjustmnet include a debit to supplies,expense and credit to supplies for $3,000                    

b) For supplies account:

Prepaid, Insurance November 30                                           $8,000

Additional insurance payment doing December                             0

                                                                                                   -----------

Prepaid insurance , December 31 (unadjusted)                      $8,000                

Adjustment squeeze                                                                   2,000

                                                                                                  -------------

Prepaid insurance december 31 (adjusted )                              6,000

The adjustment is squeeze meaning it was used as force balancing. Adjustmnet include a debit to insurance expense and credit to prepaid insurance for $2,000          

c) For supplies account:

salary payable November 30                                                  $11,000

salary paid doing December                                                      11,000

                                                                                                   -----------

Salary payable , December 31 (unadjusted)                                      0                

Adjustment squeeze                                                                  16,000

                                                                                                  -------------

Prepaid insurance december 31 (adjusted )                             $16,000

The adjustment is squeeze meaning it was used as force balancing. Adjustmnet include a debit to salary which represent unpaidupaid salary payable $16,000                              

d) For supplies account:

Deffered revenue November 30                                                          $3,000

Additiona Advances from customer in december                                         0                                    

                                                                                                                -----------

Refered revenue , December 31 (unadjusted)                                      3,000                

Adjustment squeeze                                                                               1,500

                                                                                                              -------------

refered revenue december 31 (adjusted )                                            $1,500

The adjustment is squeeze meaning it was used as force balancing. Adjustmnet include a debit to defred revenue and a credit to service revenue for $1,500 .                              

5 0
3 years ago
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