2. Which of the following subsequent (post-balance sheet) events would require note disclosure, but no adjustment to the year-end financial statements, which haven't been issued yet?a) Retirement of the company president.b) Settlement of lawsuit at an amount different from the contingent liability recorded on the balance sheet.c) Employee strike.d) Declared and issued a stock split.e) Issuance of a large amount of capital stock for cash.f) None of the above.

Answered: Image /qna-images/answer/45e01177-5f95-486e-947c-8b650d732f9f.jpg

Answered: 2. Which of the following subsequent…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Hybrid Solutions have many debtors and therefore keep records of transactions with Indvidual debtors In a Debtors Subsidiary ledger (DL) while the general ledger houses the Debtors Control account. Total of the list of debtors is reconciled at least once a month with the balance of the Debtor's Control Account. The following is the summarised list of deotors at 31 August 2021 before any adjustments were made for erors and omissions: Debtors' lst - Balances before corections for errors and omissions DL Balance Amount -R Follo Andy DL1 15 070 Beauty DL2 19 240 Cindy DL3 13 760 AN Other Debtors DL 4 to 79 94 880 Total of the llst of debtors 142 950 All the totals from the subsidary joumals have been posted to the Deotors' Control account and a debit balance of R141 500 at 31 August 2021as shown below. Errors and omisslons stil to be taken Into account for the reconcillation of the llat of debtors and the Debtors'Control account at 31 August 2021: 1. Sales of R3 680 to Cindy were…
The trial balance of Sam’s Deli Inc. at October 31, 2020, does not balance: The accounting records contain the following errors: -Recorded a $1,000 cash revenue transaction by debiting Accounts Receivable. The credit entry was correct. -Posted a $1,000 credit to Accounts Payable as $100. -Did not record utilities expense or the related account payable in the amount of $200. -Understated Share Capital by $1,100. -Omitted insurance expense of $1,000 from the trial balance. Q1: Prepare the correct trial balance at October 31, 2020, complete with a heading. Journal entries are not required but will be helpful in correcting the trial balance. Q2: Organize the elements of the trial balance in a way that would assist a bank manager who has to decide whether to loan money to Sam’s Deli.
Marshall Companies, Inc., holds a note receivable from a former subsidiary. Due to financial difficulties, the former subsidiary has been unable to pay the previous year’s interest on the note. Marshall agreed to restructure the debt by both delaying and reducing remaining cash payments. The concessions result in a credit loss on the creditor’s investment in the receivable. How is the credit loss on the troubled debt restructuring calculated?
Assume that the business has received notification on 15 April 2020 that a debtor owing $1,850 has declared bankruptcy. On 22 August 2020 the debtor unexpectedly remits full payment for the previously written-off account. Prepare the general journal entry to re-establish this debt and record payment under each of the following methods: (i) The direct write-off method (ii) The allowance method
A company’s draft financial statements for 2021 showed a profit of $630,000. However, the trial balance did not agree, and a suspense account appeared in the company’s financial statements.Subsequent checking revealed the following errors:1 The cost of an item of plant $48,000 had been entered in the cash book and in the plant account as $4,800.2 Bank charges of $440 appeared in the bank statement in December 2021 but had not been entered in the company’s records.3 One of the directors paid $800 due to a supplier in the company’s payables ledger by a personal cheque. The bookkeeper recorded a debit in the supplier’s ledger account but did not complete the double entry for the transaction.4 The payments side of the cash book had been understated by $10,000. Which of the above items would require an entry to the suspense account in correcting them? What would the company’s profit become after the correction of the above errors?

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