Hh2.Account The following transactions of Samuel James occurred during 2024:i (Click the icon to view the transactions.)Requirements1. Journalize required transactions, if any, in James's general journal. Explanations are not required.2. What is the balance in Estimated Warranty Payable assuming a beginning balance of $0?Requirement 1. Journalize required transactions, if any, in James's general journal. Explanations are not required.(Record debits first, then credits. Exclude explanations from journal entries. For transactions that do not requirean entry, make sure to select "No entry required" in the first cell in the "Accounts" column and leave all othercells blank.)Apr. 30: James is party to a patent infringement lawsuit of $150,000. James's attorney is certain it is remote thatJames will lose this lawsuit.DateApr. 30AccountsDebitCredit More infoApr. 30Jun. 30Jul. 28Sep. 30Dec. 31James is party to a patent infringement lawsuit of $150,000. James's attorney is certainit is remote that James will lose this lawsuit.Estimated warranty expense at 3% of sales of $390,000.Warranty claims paid in the amount of $5,700.James is party to a lawsuit for copyright violation of $150,000. James's attorney advisesthat it is probable James will lose this lawsuit. The attorney estimates the loss at$150,000.James estimated warranty expense on sales for the second half of the year of $550,000at 3%.PrintDoneX

The journal entries are prepared to record the transactions on regular basis. The adjustment entries…

More info Apr. 30 Jun. 30 Jul. 28 Sep. 30 Dec. 31 James is party to a patent infringement lawsuit of $150,000. James's attorney is certain it is remote that James will lose this lawsuit. Estimated warranty expense at 3% of sales of $390,000. Warranty claims paid in the amount of $5,700. James is party to a lawsuit for copyright violation of $150,000. James's attorney advises that it is probable James will lose this lawsuit. The attorney estimates the loss at $150,000. James estimated warranty expense on sales for the second half of the year of $550,000 at 3%.

More info Apr. 30 Jun. 30 Jul. 28 Sep. 30 Dec. 31 James is party to a patent infringement lawsuit of $150,000. James's attorney is certain it is remote that James will lose this lawsuit. Estimated warranty expense at 3% of sales of $390,000. Warranty claims paid in the amount of $5,700. James is party to a lawsuit for copyright violation of $150,000. James's attorney advises that it is probable James will lose this lawsuit. The attorney estimates the loss at $150,000. James estimated warranty expense on sales for the second half of the year of $550,000 at 3%.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter5: Gross Income: Exclusions

Section: Chapter Questions

Problem 35P

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2. Bubble Candies is being sued by a customer for $2 million for breach of contract over a cancelled order. Bubble Candies has obtained legal opinion that there is a 20% chance that Bubble Candies will lose the case. Accordingly Bubble Candies has provided $400,000 ($2 million x 20%) in respect of the claim. The unrecoverable legal costs of defending the action are estimated at $100,000. These have not been provided for as the case will not go to court until next year. What is the amount of the provision that should be made by Bubble Candies in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets ?
Candel is being sued by a customer for $2 million for breach of contract over a cancelled order. Candel has obtained legal opinion that there is a 20% chance that Candel will lose the case. Accordingly Candel has provided $400,000 ($2 million × 20%) in respect of the claim. The unrecoverable legal costs of defending the action are estimated at $100,000. These have not been provided for as the case will not go to court until next year. What is the amount of the provision that should be made by Candel in accordance with IAS 37 Provisions, contingent liabilities and contingent assets ?
1. Medrano is the defendant in a lawsuit filed by Witt in 2018 disputing the validity of copyright held by Tone. December 31, 2018, Tone determined that Witt would probably be successful for an estimated amount of $400, 000. Appropriately, a $400, 000 loss was accrued by a charge to income for the year ended December 31, 2018. On December 31, 2019, Tone and Witt agreed to a settlement providing for a cash payment of $250, 000 by Tone to Witt, and transfer of Tone’s copyright to Witt. The carrying amount of the copyright on tone’s accounting records was $60, 000 on December 31, 2019. What would be the effect of the settlement on Tone’s income before tax in 2019? 2. On December 31, 20x2, Apostol determines an indication that the impairment loss recognized in the prior period may no longer exist. The revised recoverable amount of the building on December 31, 20x2 is $1,280,000. If no impairment loss had been recognized in the prior period, the carrying amount of the building on December…
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Bubble Candies is being sued by a customer for $2 million for breach of contract over a cancelled order. Bubble Candies has obtained legal opinion that there is a 20% chance that Bubble Candies will lose the case. Accordingly Bubble Candies has provided $400,000 ($2 million × 20%) in respect of the claim. The unrecoverable legal costs of defending the action are estimated at $100,000. These have not been provided for as the case will not go to court until next year. What is the amount of the provision that should be made by Bubble Candies in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets ? Select one alternative A. $2,000,000 B. $2,100,000 C. $500,000 D. $100,000
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What is the correct answer in the problem below? Provide a computation and explanation.
GINGERBREAD Company is involved in a litigation regarding a faulty product sold in a prior year. The entity has consulted with lawyer and determined that there is a 50% chance of losing. The lawyer estimated that the amount of any payment would be between ₱500,000 to ₱800,000 with ₱500,000 as the best estimate. What is the required journal entry as a result of this litigation? * a. No journal entry is required b. Debit Litigation expense and credit Litigation liability for ₱ 500,000 c. Debit Litigation expense and credit Litigation liability for ₱ 250,000 d. Debit Litigation expense and credit Litigation liability for ₱ 650,000
C has initiated a lawsuit against Agency A for recovery of damages when accidentally one of the vehicles owned by the agency collided with the car then driven by C. The Chief Legal Counsel of the Agency estimates from experience that at December 2015, the entity has a 60% chance of winning the lawsuit and thereby avoiding the payment of damages. Furthermore, the counsel estimates that the agency has 20% chance of being ordered to pay C damages of P100,000 and a 20% chance of being ordered to pay C damages of P10,000. . State whether a contingent liability or contingent asset exists. Explain your answers by stating the criteria of your answers below
C has initiated a lawsuit against Agency A for recovery of damages when accidentally one of the vehicles owned by the agency collided with the car then driven by C. The Chief Legal Counsel of the Agency estimates from experience that at December 2015, the entity has a 60% chance of winning the lawsuit and thereby avoiding the payment of damages. Furthermore, the counsel estimates that the agency has 20% chance of being ordered to pay C damages of P100,000 and a 20% chance of being ordered to pay C damages of P10,00 Use the facts given in No. 1, but this time assumes that on December 31, 2015, the Chief Legal Counsel of Agency A estimates from past experience that the possibility of losing the case filed by C is remote. -State whether a contingent liability or contingent asset exists.-Explain your answers by stating the criteria of your answers below.