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Vitek1552 [10]
3 years ago
11

Sound Audio manufactures and sells audio equipment for automobiles. Engineers notified management in December2018 of a circuit fla

w in an amplifierthat poses a potential fire hazard. An intense investigation indicated that a productrecall is virtually certain, estimated to cost the company 52 million. The fiscal year ends on December 31.Required:1. Should this loss contingency be accrued, only disclosed, or neither? Explain.2. What loss, if any, should Sound Audio report in its 2018 income statement?3. What liability, if any, should Sound Audio report in its 2018 balance sheet?4. Prepare any journal entry needed.
Business
1 answer:
julsineya [31]3 years ago
4 0

Answer:

Please see attachment .

Explanation:

Please see attachment .

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Read 2 more answers
The terms of trade reflect the:
WITCHER [35]

Answer:

The correct answer is option b.

Explanation:

The terms of trade is the ratio at which two countries exchange their goods. It is the ratio of exports and imports of a country. Terms of trade reflect the health of the economy.  

It measures the number of goods a country can import in exchange for the goods it is exporting.  

An increase in the price of exported goods will increase the terms of trade for a country. While an increase in the price of imported goods will cause it to decline.

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4 years ago
After 30 selfless years of service to our company, Renalda Garwacki has chosen to take a little more time for herself. With a ne
IgorC [24]

Answer:

Semi-indirect organizational pattern is the answer.

Explanation:

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6 0
3 years ago
A review of Munchen Corporation's financial statements reveals the following information: cost of goods sold: $100,000; decrease
drek231 [11]

Answer:

The Cash paid to suppliers was $85,000

Explanation:

Data provided in the question:

Cost of goods sold = $100,000

Decrease in inventory = $5,000

Increase in accounts payable = $10,000

Now,

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= Cost of goods sold - Decrease in inventory - Increase in accounts payable

= $100,000 - $5,000 - $10,000

= $85,000

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The Cash paid to suppliers was $85,000

8 0
3 years ago
Your firm has a bond issue with a face value of $250,000 outstanding. These bonds have a coupon rate of 7 percent, pay interest
trapecia [35]

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$3,675

Explanation:

Calculation to determine the amount of the annual interest tax shield

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Therefore the amount of the annual interest tax shield is $3,675

7 0
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