journal entries for this lawsuit
Q: The values of the trading securities (FVPL) were as follows: Original cost: Securities X - P 4,000;…
A: Unrealized Gain: An increase in an asset's value that hasn't yet been realized is known as an…
Q: A review of the ledger of Pharoah Company at December 31, 20XX produces these data pertaining to the…
A: Adjusting entries The journal entries recorded at the end of an accounting year in order to close…
Q: On January 6, Year 1, Mount Jackson Corporation purchased a tract of land for a factory site for…
A: A capitalized cost is an expense added to the cost basis of a fixed asset on a company's balance…
Q: a) Pass Journal Entries in the Book of Parkin Corporation for two years using Equity Method. b)…
A: Parkin corporation has created another company whose name has been given as Sunlight Corporation.…
Q: Question(C) 1. On Septensber 1, 2015, Valdez Company reacquired 12,000 shares of ths$10par value…
A: 1. The journal entry to record the reacquisition of the shares should debit Treasury Shares for…
Q: The financial performance of the Consolidated Fund for the past three years is produced below.…
A: Lets understand the basics. Income statement analysis is made by the management in order to check…
Q: Date 2022 Jun 01 S Ash deposited capital into the business bank account 05 The business obtained a…
A: Accounting equation is one of the important fundamental used in business. This says that assets in…
Q: Stein Books Inc. sold 2,000 finance textbooks for $270 each to High Tuition University In 20X1.…
A: The income statement refers to the one prepared by the company to depict the financial performance…
Q: 3-a. The appropriate statement of financial position presentation in 20X5 for the vacation carryover…
A: Introduction The recorded revenues, obligations, and better profitability of a firm are indicated…
Q: Rayne Company reported Net sales of $1,300,000 and average Accounts Receivable, net of $78,500. The…
A: Average Accounts Receivable :— It is calculated by dividing sum of beginning and ending balance of…
Q: A Company has a single production process and it manufactures three products A, B and C by same…
A: Overhead Absorption Rate :— It is the rate used to allocate manufacturing overhead to cost object.…
Q: The Pike Company purchased a delivery truck for$71,000and estimated that the truck would have a…
A: Depreciation When the value of assets is deteriorating with the passage of time, then that fall in…
Q: MULTIPLE CHOICE 6. Which of the following best represents the accounting equation for a corporation?…
A: Accounting equation is one of the fundamental equation in the business. Components of accounting…
Q: On her 45th birthday, Lisa Martin takes out a 20-year endowment policy with a £50,000 death benefit…
A: To calculate the expected present value of the survival benefit, we need to determine the…
Q: Jack and John Company make clocks. The fixed overhead costs for 2020 total $900,000. The company…
A: Fixed overhead costs are those that don't fluctuate despite variations in the volume of production…
Q: Harper has just been hired at SB Polo Supply as a managerial accountant. One of his responsibilities…
A: Material Variances When the standard cost of material is compared against the actual cost of…
Q: and Jin Corporation is a foreign corporation which is not engaged in trade or business in the…
A: Foreing companies are those which do business outside the country and they earn income outside the…
Q: An investor anticipates that land values for a site will be worth $150,000 in five years. Assume…
A: Return on investment (ROI) is a measure of the profitability of an investment. It is calculated by…
Q: 1. Variable cost per unit is constant while fixed cost per unit is not constant. Do you agree. Yes…
A: Since multiple questions have been posted, as per the guidelines only the first question will be…
Q: Since auditors have to attest to the validity of a company's financial statements, what among the…
A: Independence is the most important characteristic for an auditor to have because it is essential to…
Q: a. What total amount should be capitalized as cost of machine?F b. If the machine has a useful life…
A: Total capitalised cost of machine All cost will be capitalised except insurance & cost of…
Q: applies to the questions displayed below.] Martinez Company's relevant range of production is 7,500…
A: Incremental cost of manufacturing means the additional cost of manufacturing incurred for producing…
Q: Blossom Company reported the following income statement data for a 2-year period. Sales revenue Cost…
A: In a periodic inventory system, the inventory must be physically counted at predetermined intervals…
Q: Question 1 On October 6, a credit card account had a balance of P10, 000. A purchase of P3, 000 was…
A: Credit cards are used by many for any purchasing but the credit cards carry the very interest rate…
Q: Co. A sells inventory for $4,000 that it had purchased for $3,200, under the perpetual inventory…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: A farmer in Vietnam has 240,000 square metres (m2) of land on which he grows maize, barley,…
A: When there are multiple products but only one key factor:- Step 1:- Rank the product on the basis of…
Q: Larissa runs a consultancy agency. The following trial balance was extracted from of Larissa…
A: Financial Information - Anything pertaining to a business's financial operations and performance is…
Q: On January 1, 2020, Doone Corporation acquired 60 percent of the outstanding voting stock of Rockne…
A: Journal entry is a primary entry that records the financial transactions initially. The transactions…
Q: II. From the following data taken from the books of Dynamite Consultants, a service business owned…
A: Asset is defined as any resource that attracts income to its lawful owner. Each asset has varied…
Q: Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets…
A: Lets understand the basics. Current ratio shows entity ability to pay its short term obligation…
Q: Gain on Bargain Purchase treated as other income in a business combination should be: a. Credited…
A: d. Credited to the income account of the acquirer.
Q: The standard cost of a gallon of paint manufactured by Through-the-Letters, Inc. includes 4 pounds…
A: Materials price variance = (Standard price - Actual price) x Actual quantity Materials quantity…
Q: 9. Ashley Martinez's checkbook balance was $149.21 on October 5. The checkbook register below shows…
A: CHECK BOOK REGISTER Check Book Register is a Bank Balances Ledger in which all the transaction…
Q: The work of one clerk is automatically check by another clerk is called : (A) Internal control. (B)…
A: Audit Procedures are steps performed by auditors to get all the information regarding the quality of…
Q: The common shares of Twitter, Incorporated (TWTR) recently traded on the NYSE for $67 per share. You…
A: We have an ESOP in had. We need to find the value under different sets of assumptions. The…
Q: Brenda Jo Smith is an architect who operates her own business. The accounts and transactions for the…
A: Companies prepare T-accounts to post the debit and credit aspects of a business transaction in a T…
Q: The DEF Corp has $3,000 of accumulated E&P and $18,000 of current E&P. It distributed $5,000 on…
A: Dividend refers to the amount which is equal to the sum of the current as well as cumulative…
Q: The following information comes from the accounts of James Company on December 31: Ending Balance…
A: Cash collected from customer during the period :— It is difference between total account receivable…
Q: An internal auditor takes a photograph of the auditee’s workplace. The photograph is a form of what…
A: An internal auditor (IA) is a trained professional tasked with providing independent and objective…
Q: Motorcycle shop advertises a tricycle for P75,000, including taxes. If you fi icycle for three years…
A: Purchase of vehicle is done on the basis of monthly installment payment and these monthly payment…
Q: I. Journalized the following transaction. PERPECTUAL INVENTORY SYSTEM Mr. Tom invested P40, 000 in…
A: Perpetual Inventory System and Periodical Inventory System: To determine inventory levels and…
Q: ontal and vertical analysis. Which type of analysis did you do?
A: In selecting the company for investment it is quite necessary to develop the financial statment and…
Q: 5. EEE Company reported accounts receivable 8,000,000 on December 31, 2023 and allowance for…
A: The allowance for doubtful account has the credit balance. It is deducted from the total account…
Q: 2. BBB Company provided the following information: Jan 1 Beg Balance 5 Purchase Sale 15 16 Sale…
A: FIFO: It is an inventory management system. FIFO means First In First Out. Under this method,…
Q: hang Company reported Cost of goods sold of $735,000, beginning Inventory of $37,200 and ending…
A: It is important to average inventory over two or more financial period in order to determine average…
Q: Required: 1. For financial accounting purposes, what is the total amount of product costs incurred…
A: PRODUCT COST Product Cost are all Direct Costs which is Directly involved in Manufacturing of…
Q: A sales associate presents an owner with an offer for $175,000 on behalf of a buyer. The owner…
A: As per the legal contractual relationships law, An offer can be declined by either the offeree or…
Q: municipal bonds
A: Municipal and treasury bonds allow investors risk free returns as they’re issued by governments.…
Q: On March 31, 2019, Brodie Corporation acquired bonds with a par value of $400,000 for $425,800. The…
A: Journal entries are used to keep track of the money that comes into and goes out of your firm. The…
Q: TRANSACTIONS 1. Paid $3,750 for the current month's rent. 2. Performed services for $4,500 in cash.…
A: T Account :— It is the ledger account in which transaction are posted during the period. General…
Harrington Company was sued by an employee in late 2020. General counsel concluded that there was an 80 percent probability that the company would lose the lawsuit. The range of possible loss is estimated to be $20,000 to $70,000, with no amount in the range more likely than any other. The lawsuit was settled in 2021, with Harrington making a payment of $60,000.
Assume that Harrington Company is a U.S.-based company that is issuing securities to foreign investors who require financial statements prepared in accordance with IFRS. Thus, adjustments to convert from U.S. GAAP to IFRS must be made. Ignore income taxes.
Required:
-
Prepare journal entries for this lawsuit for the years ending December 31, 2020, and December 31, 2021, under (1) U.S. GAAP and (2) IFRS.
-
Prepare the entry(ies) that Harrington would make on the December 31, 2020, and December 31, 2021, conversion worksheets to convert U.S. GAAP balances to IFRS.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Harrington Company was sued by an employee in late 2020. General counsel concluded that there was an 80 percent probability that the company would lose the lawsuit. The range of possible loss is estimated to be $20,000 to $70,000, with no amount in the range more likely than any other. The lawsuit was settled in 2021, with Harrington making a payment of $60,000. Assume that Harrington Company is a U.S.-based company that is issuing securities to foreign investors who require financial statements prepared in accordance with IFRS. Thus, adjustments to convert from U.S. GAAP to IFRS must be made. Ignore income taxes. Required: a. Prepare journal entries for this lawsuit for the years ending December 31, 2020, and December 31, 2021, under (1) U.S. GAAP and (2) IFRS. b. Prepare the entry(ies) that Harrington would make on the December 31, 2020, and December 31, 2021, conversion worksheets to convert U.S. GAAP balances to IFRS. Complete this question by entering your answers in the tabs…Assume that a U.S.-based company is issuing securities to foreign investors who require financial statements prepared in accordance with IFRS. Thus, adjustments to convert from U.S. GAAP to IFRS must be made. Ignore income taxes for given problem. Harrington Company was sued by an employee in late 2017. General counsel concluded that there was an 80 percent probability that the company would lose the lawsuit. The range of possible loss is estimated to be $20,000 to $70,000, with no amount in the range more likely than any other. The lawsuit was settled in 2018, with Harrington making a payment of $60,000.a. Determine the appropriate accounting for this lawsuit for the years ending December 31, 2017, and December 31, 2018, under (1) U.S. GAAP and (2) IFRS.b. Prepare the entry(ies) that Harrington would make on the December 31, 2017, and December 31, 2018, conversion worksheets to convert U.S. GAAP balances to IFRS.Harrington Company was sued by an employee in late 2017. General counsel concluded that there was an 75 percent probability that the company would lose the lawsuit. The range of possible loss is estimated to be $35,000 to $90,000, with no amount in the range more likely than any other. The lawsuit was settled in 2018, with Harrington making a payment of $70,000. Assume that a U.S. based company is issuing securities to foreign investors who require financial statements prepared in accordance with IFRS . Thus, adjustments to convert from U.S. GAAP to IFRS must be made. Ignore income taxes. a. Prepare journal entries for this lawsuit for the years ending December 31, 2017, and December 31, 2018, under (1) U.S. GAAP and (2) IFRS b. Prepare the entries that Harrington would make on the December 31, 2017, and December 31, 2018, conversion worksheets to convert U.S. GAAP balances to IFRS.
- On March 15, 2022, MOSCOW received a court decision on a lawsuit filed against the company in January 2021. As of December 31, 2021, MOSCOW did not recognize a liability as a result of this case because according to its legal counsel, it was not probable that the company will be found liable. On March 15, the court ordered MOSCOW to pay the amount of P2 million to the plaintiff. Although MOSCOW intended to make an appeal, it is still considered probable that it will pay an amount between P1.5 million to P2 million, with P2 million considered to be the most probable amount. MOSCOW's financial statements for the year ended December 31, 2021 were authorized for issue on April 30, 2022. How much is the estimated liability for damages to be reported by MOSCOW on its statement of financial position at December 31, 2021? *Sapporo K.K. was sued by a competitor in late 2017, and company management concluded that there was a 55 percent probability that the company would lose the lawsuit. The best estimate of the loss on December 31, 2017, was 4,000,000 yen. In 2018, the lawsuit is concluded with Sapporo paying its competitor 5,000,000 yen on May 15, 2018. Assume that a foreign company using IFRS is owned by a company using U.S. GAAP. Thus, IFRS balances must be converted to U.S. GAAP to prepare consolidated financial statements. Ignore income taxes. Required: Prepare journal entries for this lawsuit for the years ending December 31, 2017, and December 31, 2018, under (1) IFRS and (2) U.S. GAAP. Prepare the entry(ies) that the U.S. parent would make on the December 31, 2017, and December 31, 2018, conversion worksheets to convert IFRS balances to U.S. GAAP.Eastern Manufacturing is involved with several situations that possibly involve contingencies. Each is described below. Eastern’s fiscal year ends December 31, and the 2021 financial statements are issued on March 15, 2022. Eastern is involved in a lawsuit resulting from a dispute with a supplier. On February 3, 2022, judgment was rendered against Eastern in the amount of $117 million plus interest, a total of $132 million. Eastern plans to appeal the judgment and is unable to predict its outcome though it is not expected to have a material adverse effect on the company. In November 2020, the State of Nevada filed suit against Eastern, seeking civil penalties and injunctive relief for violations of environmental laws regulating hazardous waste. On January 12, 2022, Eastern reached a settlement with state authorities. Based upon discussions with legal counsel, the Company feels it is probable that $150 million will be required to cover the cost of violations. Eastern believes that the…
- An employee sued Harrington Company in late 2023. General counsel concluded that there was an 80 percent probability that the company would lose the lawsuit. The range of loss is estimated to be $21,000 to $73,500, with no amount in the range more likely than any other. They settled the lawsuit in 2024, with Harrington making a payment of $63,000. Assume that Harrington Company is a U.S.-based company that is issuing securities to foreign investors who require financial statements prepared accordance with IFRS. Thus, adjustments to convert from U.S. GAAP to IFRS must be made. Ignore income taxes. Required: Prepare journal entries for this lawsuit for the years ending December 31, 2023, and December 31, 2024, under (1) U.S. GAAP and (2) IFRS. Prepare the entry(ies) that Harrington would make on the December 31, 2023, and December 31, 2024, conversion worksheets to convert U.S. GAAP balances to IFRS. Record the entry for the litigation liability as per U.S. GAAP. Note: Enter…Assume that a U.S.-based company is issuing securities to foreign investors who require financial statements prepared in accordance with IFRS. Thus, adjustments to convert from U.S. GAAP to IFRS must be made. Ignore income taxes for given problem. Hirsch Company acquired equipment at the beginning of 2017 at a cost of $135,000. The equipment has a five-year life with no expected salvage value and is depreciated on a straight-line basis. At December 31, 2017, Hirsch compiled the following information related to this equipment: Expected future cash flows from use of the equipment . . . . . . . . $116,000Present value of expected future cash flows from use of the equipment . . . . . . . . . . . 100,000Fair value (selling price less costs to dispose) . . . . . . . . . . . . . . . . 96,600 a. Determine the appropriate accounting for this equipment for the years ending December 31, 2017, and December 31, 2018, under (1) U.S. GAAP and (2) IFRS.b. Prepare the entry(ies) that Hirsch would…The Park Company is affected by the following contingencies at the end of 2016: 1. Expropriation of Park's foreign assets, valued at $3,000,000, appears reasonably possible. 2. Parks' legal counsel has concluded that it is probable that the company will be required to pay damages of $500,000 in a lawsuit. 3. It appears remotely possible that a major customer will be unable to repay Parks on a note receivable for $100,000. 4. Parks' controller estimates that $250,000 of the company's pledged receivables are likely to be uncollectible, and the lender will require Parks to honor the amounts. What total amount should Parks accrue for loss contingencies in 2016?
- Eastern Manufacturing is involved with several situations that possibly involve contingencies. Each is described below. Eastern's fiscal year ends December 31, and the 2021 financial statements are issued on March 15, 2022. a. Eastern is involved in a lawsuit resulting from a dispute with a supplier On February 3, 2022, judgment was rendered against Eastern in the amount of $111 million plus interest, a total of $126 million. Eastern plans to appeal the judgment and is unable to predict its outcome though it is not expected to have a material adverse effect on the company. b. In November 2020, the State of Nevada filed suit against Eastern, seeking civil penalties and injunctive relief for violations of environmental laws regulating hazardous waste. On January 12, 2022, Eastern reached a settlement with state authorities. Based upon discussions with legal counsel, the Company feels it is probable that $144 million will be required to cover the cost of violations. Eastern believes that…Eastern Manufacturing is involved with several situations that possible involve contingencies. Each is described below. Eastern’s fiscal year ends December 31, and the 2021 financial statements are issued on March 15, 2022. Eastern is involved in a lawsuit resulting from a dispute with a supplier. On February 3, 2022, judgment was rendered against Eastern in the amount of $124 million plus interest, a total of $139 million. Eastern plans to appeal the judgment and is unable to predict its outcome though it is not expected to have a material adverse effect on the company. In November 2020, the State of Nevada filed suit against Easter, seeking civil penalties and injunctive relief for violations of upon discussions with legal counsel, the Company feels it is probable that $157 million will be required to cover the cost of violations. Eastern believes that the ultimate settlement of this claim will not have a material adverse effect on the company. Eastern is the plaintiff in a $217…During 2020, EFG Company is the defendant in a patent infringement lawsuit. The entity's lawyers believe there is a 30% chance that the court will dismiss the case and the entity will incur no outflow of economic benefits.However, if the court rules in favor of the claimant, the lawyers believe that there is a 20% chance that the entity will be required to pay damages of P200,000 and an 80% chance that the entity will be required to pay damages of P100,000. Other outcomes are unlikely.The court is expected to rule in late December 2022. There is no indication that the claimant will settle out of court.A 7% risk adjustment factor to the probability-weighted expected cash flows is considered appropriate to reflect the uncertainties in the cash flow estimates.An appropriate discount rate is 5% per year. The present value of 1 at 5% for one period is 0.95 and for two periods is 0.91.A.) What is the amount of undiscounted cash flows for the provision? B.) What is the measurement of the…
