Pacific Cruise Lines is a defendant in litigation involving a swimming accident on one of its three cruise ships.

Business

1 answer:

tino4ka555 [31]3 years ago

3 0

Answer:

See attached accounting entries.

Explanation:

For question 1, the likelihood of a payment occurring is probable, the is chance that Pacific Cruise Lines will pay liability as such estimated amount of $1.29 million should be set aside.

For question 2, the likelihood of a payment occurring is probable, the is chance that Pacific Cruise Lines will pay liability as such estimated maximum amount of $1.29 million should be set aside.

For question 3, the likelihood of a payment occurring is reasonably probable, the is chance that Pacific Cruise Lines will pay liability as such estimated amount of $1.29 million should be set aside.

For question 3, the likelihood of a payment occurring is remote, that is, there little relationship with this case that cause Pacific Cruise Lines being liable to pay as such potential amount of $1.29 million should be set aside.

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Travers Manufacturing incurred $106,000 of direct labor and $11,000 of indirect labor. The proper journal entry to record these

olya-2409 [2.1K]

Answer:

$117,000

Explanation:

All costs incurred in manufacturing a product are recorded in the Work in Process Account. The Debit entry on this Account shows the increase in costs and the credit entry shows the transfer of goods to Finished Goods Inventory

So the Work In Process Account must be debited with the Total labor Cost incurred of $117,000 ($106,000 direct labor + $11,000 indirect labor)

Conclusion :

The proper journal entry to record these events would include a debit to Work in Process for $117,000

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3 years ago

in comparing the canceled checks on the bank statement with the entries in the accounting records, obrien company found that che

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In the preparation of a bank reconciliation statement, the Obrien Company should make a deduction of $270 from the cash balance.

<h3>What is bank reconciliation?</h3>

The rectification of errors in the bank accounts and entries is done via bank reconciliation. In the above case, bank reconciliation is required for rectification of entry errors in the following way,

There is no need for rectification in bank balance, as the deduction in the bank balance is error-free;
Cash balance showed an erroneous entry of $9585, instead of $9855;
The difference between the correct entry and erroneous entry of $(9855-9585)=$270 shall be made in the cash balance of the books.