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cupoosta [38]
3 years ago
13

Sound Audio manufactures and sells audio equipment for automobiles. Engineers notified management December 2011 of a circuit fla

w in an amplifier that poses a potential fire hazard. An intense investigation indicated that a product recall is virtually certain, estimated to cost the company $2 million. The fiscal year ends on December 31.
Required:
1. Should this loss contingency be accrued, disclosed only, or neither? Explain.
2. What loss, if any, should Sound Audio report in its 2011 income statement?
3. What liability, if any, should Sound Audio report in its 2011 balance sheet?
4. Prepare any journal entry needed.
Business
1 answer:
ANTONII [103]3 years ago
5 0

Answer:

1. Accrued

2. $2 Million

3. $2 Million

4. Dr Loss product recall (Expense) $2 Million

Cr Liability product recall (Liability) $2 Million

Explanation:

1. Yes, Based on the information given this loss contingency should be accrued reason been that all the necessary requirement are met and secondly the loss is tend to be probably and lastly the said amount can be estimated which is why the recorded liability is accrued.

2. The loss that Sound Audio should report in its 2011 income statement is $2 Million

3. The liability that Sound Audio should report in its 2011 balance sheet would also be $2 Million

4.Preparation of any journal entry needed

Dr Loss product recall (Expense) $2 Million

Cr Liability product recall (Liability) $2 Million

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The correct answer is inject cash into it.

Explanation:

Every day, central banks lend money to private banks through auctions. The extraordinary thing about these new liquidity injections starring the European Central Bank or the US Federal Reserve is not so much the operation itself, as the situation in which they occur.

In this case, problems arise when, due to distrust, banks do not lend money to each other, operations that are common when the system is working properly.

With extraordinary placements, the central entities replace that lack of funds that private banks have not been able to obtain from their partners and, at the same time, at a cheaper price - at a lower interest rate.

6 0
3 years ago
Vincent operates a scenic tour business in Boston. He has one bus which can fit 50 people per tour and each tour lasts 2 hours.
mixas84 [53]

Answer:

There is some information missing, and when I looked for it I found similar questions but the demand was already given and the question was about Vincent's total daily income.

Passenger                  Price                  Daily demand

Adults                          $18                        70

Children                      $10                        25

Senior citizens            $12                        55

total                                                           150

total revenue per day = ($18 x 70) + ($10 x 25) + ($12 x 55) = $1,260 + $250 + $660 = $2,170

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6 0
3 years ago
Wilma leads a task force charged with restructuring the order-processing system in the organization. The task force is composed
OLga [1]

Answer:

B. task-oriented leadership style .

Explanation:

Task-oriented leadership style -

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This type of leader is referred to as the task - oriented leadership style .

As from the very term, the person is only inclined towards his or her task

There type of leaders assign the tasks very clearly and making sure all the works are done on time with proper efficiency and accuracy .

These leader are very consult about the deadline and hence define all the task to get over before the deadline .

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The correct answer is B. task-oriented leadership style.

6 0
4 years ago
Novak Company took a physical inventory on December 31 and determined that goods costing $190,000 were on hand. Not included in
Lorico [155]

Answer: $237070

Explanation:

The amount that Novak should report as its December 31 inventory will be:

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8 0
3 years ago
Swifty Corporation's allowance for uncollectible accounts was $187500 at the end of 2017 and $180500 at the end of 2016. For the
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Answer:

The amount Swifty debited to the appropriate account in 2017 to write off actual bad debts: $25,800

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Allowance for uncollectible accounts at the end of 2017 = Allowance for uncollectible accounts at the end of 2016 + Bad debt expense of 2017 - The amount of write off actual bad debts.

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5 0
3 years ago
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