1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
pantera1 [17]
2 years ago
12

The board of directors of Chestnut Inc. approved a restructuring plan on November 1, Year 1. On December 1, Year 1, Chestnut pub

licly announced its plan to close a manufacturing division in New Jersey and move it to China, and the company's New Jersey employees were notified that their jobs would be eliminated. Also on December 1, Year 1, to ensure an orderly transition, management promised a termination bonus of $10,000 to any employee who remains with the company until his or her position is terminated in the fourth quarter of Year 2. Chestnut estimates it will pay termination bonuses to 120 employees at the end of Year 2, for a total of $1,200,000. The present value of the estimated termination bonus is $1,000,000.
Required:
Determine the provision that should be recognized for Chestnut's restructuring plan. Identify the dates on which journal entries should be made and the amounts to be recorded.
Business
1 answer:
prohojiy [21]2 years ago
5 0

Answer:

Company by informing employees about termination is creating constructive obligation. Company should therefore provide for restructuring costs calculated as PV of estimated termination bonus which is based on number of employees would accept the offers. The provision for expenses should be recognized on December 1 of year 1

      Journal entry to record provision for restructuring costs

Date                  General Journal                       Debit                 Credit

01/Dec/Year 1    Restructuring expenses        $1,000,000

                                Provision for termination of benefits      $1,000,000

                           (To record provision for restructuring costs)

You might be interested in
Venus Inc., a producer of high-end computer software, provides merchandising aids to its distributors in the form of interactive
Tanya [424]

Answer: push marketing strategy

Explanation:

A Push Marketing Strategy can sometimes be referred to as the push promotional strategy, and this occurs when businesses take their products to the customers.

In this strategy, different marketing techniques are used by the company to push their products to the consumers. This can be seen in the question given as Venus Inc. is utilizing different methods in order to accelerate the sale of its new product.

6 0
3 years ago
According to the video, what are a Computer Programmer's real skills? Check all that apply.
choli [55]

Answer:

1 3 thx for the answer!

Explanation:

3 0
2 years ago
Read 2 more answers
Career question easy below
Sever21 [200]

Answer:

C is the answer

Explanation:C

8 0
2 years ago
The impact of financial accounting information on investors' and creditors' decisions is closely related to the concept of:_____
OlgaM077 [116]

The impact of financial accounting information on investors' and creditors' decisions is closely related to the concept of materiality.  In auditing and accounting, the term "materiality" refers to the importance or "significance" of a sum, a transaction, or a discrepancy.

According to the general accepted accounting principles (GAAP) criterion known as "materiality," all items that are conceivably likely to have an influence on investors' decision-making must be documented or disclosed in full in a company's financial statements. The significance of information in financial accounts of a corporation is referred to as materiality. A transaction or business decision is "material" to the business if it necessitates reporting to investors or other users of the financial statements and cannot be excluded.

#SPJ4

3 0
1 year ago
There is no evidence that giving (blank) to your children makes them hyperactive.
tatiyna
I think its Sugar because that usually what people are talking about when dealing with children.
6 0
3 years ago
Read 2 more answers
Other questions:
  • Russell Enterprises acquired a franchise from Michael Incorporated for $300,000. The franchise agreement is for a period of six
    14·1 answer
  • Chow is unmotivated, feels worthless, sleeps all the time, and does not get out of bed for days at a time. he has not been to wo
    15·1 answer
  • A taxable bond with a coupon rate of 6.00% has a market price of 98.19% of par. The bond matures in 9.00 years ans pays semi-ann
    14·1 answer
  • Amy has opened a new startup company in web design. Within the first month of business, the startup agrees to maintain an accoun
    12·1 answer
  • BreatheDeep, a monopolist, produces 10,000 doses of medicine for sever asthma at a cost of $4 per dose. If each dose is sold for
    6·1 answer
  • Help me with these please? Marking brainliest for best answer! On a time crunch
    15·1 answer
  • Voluntary deductions from employee pay can include all of the following: (You may select more than one answer. Single click the
    13·1 answer
  • Help me help me help me
    15·1 answer
  • The team is working through the planning processes. They are using a plan-driven approach to this system-critical change that wi
    11·1 answer
  • Dorian owns a farm and sells potatoes to local restaurants and grocery stores. which phrase describes this information about dor
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!