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Kitty [74]
3 years ago
10

Pacific Cruise Lines is a defendant in litigation involving a swimming accident on one of its three cruise ships.Required:1. The

likelihood of a payment occurring is probable, and the estimated amount is $1.3 million.2. The likelihood of a payment occurring is probable, and the amount is estimated to be in the range of $1.1 to $1.6 million.3. The likelihood of a payment occurring is reasonably possible, and the estimated amount is $1.3 million.4. The likelihood of a payment occurring is remote, while the estimated potential amount is $1.3 million.Record the necessary entry for the scenarios given above.
Business
1 answer:
Ainat [17]3 years ago
5 0

Answer and Explanation:

According to the scenario, the journal entries are of the given data are as follow:-

Journal Entry

1. Loss A/c              Dr.  $1,300,000

     To Contingent liability A/c       $1,300,000

(Being the likelihood of a payment occurring is probable is recorded)

For recording this we debited the loss and credited the contingent liability as it increased the loss and liability

2. Loss A/c       Dr.  $1,100,000

     To Contingent liability A/c       $1,100,000

(Being the likelihood of a payment occurring is probable is recorded)

For recording this we debited the loss and credited the contingent liability as it increased the loss and liability

3. The likelihood of payment occurring is reasonably possible instead of probable, so we don’t have a need to record this entry. But we describe this in financial statements in the foot note

No Journal Entry Needed

4. The likelihood of payment occurring is remote so disclosure is not needed.

No Journal Entry Needed

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When command is transferred, then all personnel involved in the incident should be told.
olga nikolaevna [1]

Based on the principle of formality, the correct answer goes:

  • The effective time and date of the transfertransfertransfertransfer

<h3>Command of transfer</h3>

When command is transferred, then all personnel with a need to know should be told: The effective time and date of the transfer.

In conclusion, we can conclude that the correct answer is as informing about effective time and date.

Learn more about transferring officer here: brainly.com/question/10721205

6 0
2 years ago
On January 1, 2018, Friendly Farm Company purchased a new machine at a cost of $350,000. The machine has an estimated useful lif
schepotkina [342]

Answer:

Friendly Farm Company

Schedule of Straight-line, Units of Production, and Double Declining Balance:

                             Straight-line     Units of Production    Double Declining

Year 1 Book value   $350,000        $350,000                               $350,000

Depreciation Exp.     $80,000          $96,000 (30,000*$3.20)      $175,000

Year 2 Book value $270,000        $254,000                                 $175,000

Depreciation Exp.    $80,000           128,000 (40,000*$3.20)          87,500

Year 3 Book value $190,000         $126,000                                  $87,500

Depreciation Exp.   $80,000             64,000 (20,000*$3.20)          43,750

Year 4 Book value $110,000           $62,000                                  $43,750

Depreciation Exp.    80,000              32,000 (10,000*$3.20)         $13,750

Residual value       $30,000           $30,000                                  $30,000

Explanation:

a) Data and Calculations:

Cost of new machine = $350,000

Estimated useful life = 4 years or 100,000 hours

Residual value = $30,000

Usage of machine:

Year 1 = 30,000 hours

Year 2 = 40,000 hours

Year 3 = 20,000 hours

Year 4 = 10,000 hours

Units of Production = $320,000/100,000 = $3.20 per unit

Depreciable amount = $320,000 ($350,000 - $30,000)

Straight-line method, Depreciation per year = $80,000 ($320,000)

= 25% (100/4).

Depreciation expense, using Double-Declining Balance rate = 25% * 2 = 50%:

Year 1 = $350,000 * 50% = $175,000

Year 2 = $175,000 * 50% = $87,500

Year 3 = $87,500 * 50% = $43,750

Year 4 = $13,750 ($43,750 - $30,000)

b) These different methods still arrive at the same end result as shown above.  Note that depreciation is an accounting estimate which spreads the cost of an acquired long-term asset over its useful life.

5 0
2 years ago
The comparative financial statements of Stargel Inc. are as follows. The market price of Stargel common stock was $119.70 on Dec
allsm [11]

Based on the comparative financial statements of Stargel Inc, the financial ratios are:

  1. $2,790,000
  2. 4.1
  3. 2.5
  4. 16.0
  5. 22.8 days
  6. 2.2. times
  7. 73 days
  8. 2.2
  9. 0.4
  10. 7.6
  11. 1.1 times
  12. 11.5%
  13. 13.3%
  14. 13.6%
  15. $8.55
  16. 14.0
  17. $0.50
  18. 0.4%

<h3>What are Stargel's financial ratios?</h3>

Working capital:

= Current assets - Current liabilities:

= 3,690,000 - 900,000

= $2,790,000

Current ratio:

= Current assets / Current liabilities

= 3,690,000 /900,000

= 4.1

Quick ratio:

= 2,250,000 / 900,000

= 2.5

Receivables turnover ratio:

= Net credit sales /Average accounts receivable

= 10,000,000 / 625,000

= 16 times

Number of days' sales in receivables days:

= Average accounts receivable / Average daily sales

= 625,000 / 27,397.26

= 22.8 days

Find out more on the dividend yield at brainly.com/question/20704820.

#SPJ1

7 0
2 years ago
San Francisco Seats manufactures seats for airplanes. The company has the capacity to produce 100,000 seats per year, but is cur
Rzqust [24]

Answer:

The company's operating income will increase from $8,800,000 by $350,000 to become $9,150,000

Explanation:

Detailed explanation and calculation is shown in the image below

4 0
3 years ago
In order to better compare/contrast costs of living in the various environments gnp/gdp may be adjusted to:
Alex777 [14]
The answer is Purchasing power parity or the PPP. PPP is a hypothesis which expresses that trade rates between monetary forms are in balance when their acquiring power is the same in each of the two nations. Relative acquiring power equality is a financial hypothesis which predicts a connection between the swelling rates of two nations over a predetermined period and the development in the conversion standard between their two monetary forms over a similar period. It is a dynamic rendition of the total PPP hypothesis.
6 0
3 years ago
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