Answer:
Please find the detailed explanation below.
Situation 1 and 2 have disclosure while situation 3 does not require any disclosure.
Explanation:
Situation 1. Accrual. The one-year warranty has created what is known as contingent liability. Contingent liability is a type of liability that is dependent on the outcome of some specific actions which has happened in the past. The eventual liability may or may not happen. But since the probable claim from the one-year warranty has been determined, it should be disclosed. But if the claim cannot be determined, it shouldn't be disclosed.
Situation 2. Since this contract happened before the issuance of financial statement and the amount of loss from this contract can be reasonably estimated or determined, then it must be disclosed and the likely amount must also be disclosed. This disclosure will be under 'note to the financial statement'.
Situation 3. This is a self insurance and self insurance is not an insurance. There is no contingent liability in this situation. Also, there is no accident, no injury. Hence, this is no disclosure here.
Answer
• Use Employee referral Programs
• Hire for Attitude and then do training for skills
Explanation
Employees working in your organization can be a valuable source of knowledge need when recruiting. They have friends and acquaintances that are in the same field. Come up with a policy that will enable staff refer suitable candidates for job positions in the company.
A smart recruiter should search for attitude when recruiting employees because skills can be gained. The best candidate should show a positive attitude towards a position with the required skills which is in most cases difficult to find. The technique to employ here as a recruiter is to find a person with a positive attitude towards a job posting.
Answer:
Explanation:
The proper adjusting entry is as follows
Supplies expense A/c Dr $603
To Supplies A/c $603
(Being supplies account is adjusted)
The supplies expense is computed by
= Supplies account balance - supplies on hand at the end of the year
= $873 - $270
= $603
Basically we debited the supplies expense account and credited the supplies account so that the proper posting could be done.
Answer:
Estimated indirect costs allocation rate= $14 per direct labor hour
Explanation:
Giving the following information:
Estimated direct labor hours= 23,000
Estimated indirect costs= $322,000.
To calculate the allocation rate, we need to use the following formula:
Estimated indirect costs allocation rate= total estimated indirect costs for the period/ total amount of allocation base
Estimated indirect costs allocation rate= 322,000/23,000
Estimated indirect costs allocation rate= $14 per direct labor hour
