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4 years ago

Scorcese Inc. is involved in a lawsuit at December 31, 2020.

Business

1 answer:

IceJOKER [234]4 years ago

5 0

Answer and Explanation:

a. The Journal entry is shown below:-

Lawsuit loss Dr, $900,000

To Lawsuit liability $900,000

(Being lawsuit loss is recorded)

Here we debited the lawsuit loss as it increased the losses and we credited the lawsuit liability as it also increased the liabilities because the losses contains normal debit balance and the liability contains normal credit balance

b. No Journal entry is required as The loss is not accrued as it is not expected that a liability has been spent at Dec 31, 2020

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Carla and Eliza share income equally. For the current year, the partnership net income is $40,000. Carla made withdrawals of $12

sveticcg [70]

Answer:

$54,000

Explanation:

Eliza's share of net income = $40,000 ÷ 2

= $20,000

Eliza made withdrawals = $21,000

Eliza capital = $55,000

Eliza’s capital account balance at the end of the year:

= Eliza capital - Eliza withdrawals + Net income share of Eliza

= $55,000 - $21,000 + $20,000

= $54,000

Therefore, the Eliza’s capital account balance at the end of the year is $54,000.

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4 years ago

What is the formal agreement between two or more countries trade,peace and other matters called?

Arlecino [84]

Pretty sure its a treaty

5 0

3 years ago

Read 2 more answers

Phone calls are:________.

Y_Kistochka [10]

Answer:

The correct answer is letter "C": capable of offering the give-and-take of in-person conversations.

Explanation:

While talking about channels of communication, phone calls are useful to imitate the closest possible to face-to-face communication, with its limitations. The transmission of information is done in real-time and the participants can provide their points of view just as if they were talking in person.

Though, expressions cannot be captured. Many people over the phone can pretend to have a mood modulating their tone of voice even if their feelings are opposite.

8 0

4 years ago

Nueva Company reported the following pretax data for its first year of operations. Net sales 7,400 Cost of goods available for s

Ludmilka [50]

Answer:

Net Income $574

Explanation:

Calculation of Nueva's net income if it elects FIFO will be :

Net sales$7,400

Less Cost of goods sold ($4,806)

($5,610 − $804)

Gross profit 2,594

Operating expenses (1,638)

Income before taxes 956

(2,594-1,638)

Income tax 382.4

(40%×956)

Net income $574

(956-382.4)

Therefore the Nueva's net income if it elects FIFO would be $574

8 0

3 years ago

Cray Research sold a super computer to the Max Planck Institute in Germany on credit and invoiced €10 million payable insix mont

Reil [10]

Answer:

a) The expected loss from the forward hedging = $432,900

b) No I wouldn’t recommend hedging the euro receivable based on the fact that the future spot rate is better off than the forward exchange rate.

c) No I wouldn’t because in any case whether you hedge or not there will be no difference.

Explanation:

Solution.

Forward Exchange Rate = $1.10/€, therefore the equivalent of €10 million receivable from Germany in 6-month time = €10 million / Forward exchange rate ($1.10) = $9,090,909

However, the 6 months spot rate is $1.05/€, therefore if we simply wait till 6 months we will receive €10 million / Forward spot rate ($1.05) = $9,523,809.

a) The expected loss from the forward hedging = $9,523,809 - $9,523,809 = $432,900

b) No I wouldn’t recommend hedging the euro receivable based on the fact that the future spot rate is better off than the forward exchange rate.

c) No I wouldn’t because in any case whether you hedge or not there will be no difference. You’ll just end up paying hedging fees which will impact on profits adversely.

However it is always advisable to hedge foreign exchange risks because predictions could differ from reality and adverse movements in exchange rates could carry significant financial consequences which may not be comparable to the hedging costs.

7 0

3 years ago