Honest Corporation carried a provision of P1,500,000 in the draft financial statements for the year ended December 31, 2021 in relation to a labor case. The case was settled for P2,500,000 on February 28, 2022, a week before the financial statements for the year ended December 31, 2021 were authorized for issue. What amount should be recorded as accrued liability on December 31, 2021 in relation to this event?

Honest Corporation carried a provision of P1,500,000 in the draft financial statements for the year ended December 31, 2021 in relation to a labor case. The case was settled for P2,500,000 on February 28, 2022, a week before the financial statements for the year ended December 31, 2021 were authorized for issue. What amount should be recorded as accrued liability on December 31, 2021 in relation to this event?

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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