On Dec. 31, 2020, an employee filed a P3,000,000 lawsuit against Siomai Company for damages suffered when one of Siomai's plants exploded on July 20, 2020. Siomai's legal counsel expects the company will lose the lawsuit and estimates the loss to be between P500,000 and P1,500,000. The employee has offered to settle the lawsuit out of court for P900,000 but Siomai will not agree to the settlement. In its Dec. 31, 2020 statement of financial position, what amount should Siomai Company report as a provision from the lawsuit? *
Q: An employee earned $62,500 during the year working for an employer. The Federal Insurance…
A: Federal Unemployment Tax Act (FUTA): The federal unemployment tax is welfare scheme of a social…
Q: Information of a machine is given on the table bellowed. First Cost ($) Salvage Value ($) Life…
A: Double declining balance method :— Under this method, depreciation expense is calculated by…
Q: Andaman Inc. has provided the following data for the month of November. There were no beginning…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: Weighted average cost of capital) in the spring of last year, Tempe Steel learned that the firm…
A: Weight of debt = wd = 46% Weight of equity = we = 54% Cost of debt before tax = cd = 8.4% Tax rate =…
Q: Consider the following information: Economy Recession Normal Boom a. Probability of State of Economy…
A: Here,
Q: Data concerning a recent period's activity in the Assembly Department, the first processing…
A: Direct material cost is the cost of raw material produced or purchased for producing the final…
Q: Which one of the following is incorrect? O a. Goods Available for Sale Opening Inventory + Net…
A: Cost of Goods Sold - Cost of Goods Sold is the cost incurred by the company to sell the goods to the…
Q: The following data relates to Spurrier Company's budgeted amounts for next year. Budgeted Data:…
A: An overhead rate, also known as an overhead allocation rate or burden rate, is a measure used to…
Q: Suppose Katy borrowed some amount of money for 98 weeks and Anastasia borrowed the same amount.…
A: In simple interest there is interest on the principal amount of loan only and there is no interest…
Q: :00 QS 20-22 (Algo) Computing budgeted accounts receivable LO P2 Kingston budgets total sales for…
A: Budgeting - Budgeting is the process of estimating future operations based on past performance. %…
Q: During a period, The Yarn Barn purchased 3 boxes of silk ribbon for $350, $500, and $425, and sold 2…
A: The ending inventory comprises the cost of goods that remains unsold at the end of the accounting…
Q: What is the correct formula for B9? Choose all that apply. A B C Bond Valuation 1 2 Settlement Date…
A: A bond is a type of debt security issued by governments and private companies to raise funds from…
Q: 2. Problem 12.02 (Project Cash Flow) Colsen Communications is trying to estimate the first year cash…
A: The calculation of the operating cash flow involved these cells as well as operating costs…
Q: For Nissan (an automobile manufacturer), which of the following is a direct cost with respect to the…
A: Ans. Direct costs are specific costs which are directly attributable to the cost of the product…
Q: Wyckam Manufacturing Incorporated has provided the following estimates concerning its manufacturing…
A: Manufacturing costs may vary based on factors such as production volume, production methods,…
Q: SA=P[1+1) and A Pe to solve the problem given. Round answers to the Use the compound interest…
A: Future value is the estimation of future cash value which is likely to be received in the future…
Q: Use the following information to answer five questions related to the Abnormal Earnings Model; The…
A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…
Q: A company is considering a project which will add 10,000 per year in cash flow. The project will…
A: Internal rate of return is the rate at which the net present value of project is Zero. This rate is…
Q: (a) Prepare a balance sheet for the business combination. Assume the following: Pina Colada Company…
A: Business combination is a transaction or an activity in which an acquirer acquire the business of…
Q: Under Armour, Incorporated is an American supplier of sportswear and casual apparel. Following are…
A: The SGR helps businesses set reasonable development objectives and organize their strategy…
Q: What is the coupon rate for the bond? Assume semi-annual payments. Answer as a percent! Bond Coupon…
A: Bonds are debt securities that are issued by governments, municipalities, and corporations to raise…
Q: Different investor weights. Two risky portfolios exist for investing: one is a bond portfolio with a…
A: The expected return on the investment refers to the weighted average return provided by the company…
Q: Annuity due. Reginald is about to lease an apartment for 24 months. The landlord wants him to make…
A: When the lender lends a loan to the borrower, he charges a rate of interest on the borrowed amount.…
Q: Assume a company had no jobs in progress at the beginning of July and no beginning inventories. It…
A: Product cost is the cost incurred in the factory for the production of goods and hence includes…
Q: (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.)…
A: Capital budgeting refers to the method used for estimating the viability of the project that is…
Q: Oil Wells offers 5.65% coupon bonds with semi-annual payments and a yield to maturity of 6.94%. The…
A: Time value of money :— According to this concept, value of money in present day is greater than the…
Q: Land Transactions on the Statement of Cash Flows Cameron Corporation purchased land for $374,000.…
A: Cash flow statement :— It is one of the financial statement that shows change in cash and cash…
Q: Compute the two missing amounts for each case. Assume it is the end of the first full year of…
A: Income statement shows company's income and expenses over a period of time.Formula for an income…
Q: The following information is for Crane's Burger Company: Cash balance per bank, July 31. $8,983.…
A: The journal entries are prepared to record the transactions on regular basis. The bank…
Q: 1. Brooks Agency set up a petty cash fund for $220. At the end of the current period, the fund…
A: Petty cash is a small amount of cash that is kept on hand by a business or organization to cover…
Q: The information contained in the table below shows the expected return and standard deviation for…
A: Percentage allocated to the market=(market return-risk free rate)/(risk aversion*standard deviation…
Q: I have to enter this information into an excel spread sheet but I cannot figure out what should go…
A: Simple interest is the concept, where the interest does not compound. It uses a different formula…
Q: [The following information applies to the questions displayed below.] Morganton Company makes one…
A: Budgeted unit sales for July: 17,000 unitsVariable selling and administrative expense per unit sold:…
Q: Using the expectations hypothesis theory for the term structure of interest rates, determine the…
A: A treasury bill is a kind of debt security issued by the government and private companies for…
Q: Linwood Company recently began production of a new navigation device, which required a capital…
A: Answer:- Cost plus pricing method meaning:- Markup pricing is another name for the cost-plus pricing…
Q: An NPV profile plots a project's NPV at various costs of capital, labeled "A" and "B" in the graph.…
A: Cross-over rates are the rates of discount or the required return at which the NPVs of both projects…
Q: The standard costs and actual costs for factory overhead for the manufacture of 2,600 units of…
A: Fixed overhead volume variance = Absorbed fixed overhead - Budgeted fixed overheadIf the absorbed…
Q: An investor is considering the purchase of a(n) 7.375%, 15-year corporate bond that's being priced…
A: Here,ParticularsValuesAnnual coupon rate7.375%Number of years15.00Yield to maturity…
Q: An apprenticeship contract is one whereby a firm owner undertakes to provide full vocational…
A: The Answer is "False" Reason: The UAE Companies Law does not prescribe any minimum share capital but…
Q: a-1. What are the investment proportions in the minimum-variance portfolio of the two risky funds?…
A: The minimum variance portfolio is a concept in portfolio theory that aims to construct an investment…
Q: The Quality Manager of Bright (USA) Inc., Sarah McMahon, is unsure on how to analyze the cost of…
A: To analyze the cost of quality and its performance, Sarah McMahon can use several methods such as…
p21
Step by step
Solved in 2 steps
- On Dec. 31, 2020, an employee filed a P3,000,000 lawsuit against Siomai Company for damages suffered when one of Siomai’s plants exploded on July 20, 2020. Siomai’s legal counsel expects the company will lose the lawsuit and estimates the loss to be between P500,000 and P1,500,000. The employee has offered to settle the lawsuit out of court for P900,000 but Siomai will not agree to the settlement. In its Dec. 31, 2020 statement of financial position, what amount should Siomai Company report as a provision from the lawsuit?On February 5, 2021, an employee filed a P2,000,000 lawsuit against ABC Company for damages suffered when one of ABC's plant exploded on December 29, 2020. ABC ’s legal counsel expects the company will probably lose the lawsuit and estimates the loss to be P500,000. The employee has offered to settle the lawsuit out of court for P900,000, but ABC will not agree to the settlement. In its December 31, 2020 balance sheet, what amount should ABC report as liability from lawsuit? A. 500,000 B. 900,000 C. 1,000,000 D. 2,000,000On February 5, 2020, an employee filed a P2,000,000 lawsuit against Superman Company for damages suffered when plant of the entity exploded on December 29, 2019. The entity's legal counsel believed the entity will probably lose the lawsuit and estimated the loss to be P500,000. The employee has offered to settle the lawsuit out of court for P900,000 but the entity will not agree to the settlement. On December 31, 2019, what amount should be reported as accrued liability.
- Kylie, an employee of Aljur Company, filed a P3,000,000 complaint against the company on December 2, 2020, for damages experienced when one of Aljur's plants burst on July 20, 2020. Aljur's legal counsel anticipates that the company will lose the litigation and believes that the loss will range between P500,000 and P1,000,000. An employee, Kylie, has offered to settle the complaint out of court for P900,000, but Aljur would not accept the offer. What amount should Aljur Company report as a provision from a lawsuit in its December 31, 2020, statement of financial position?* a. P500,000 b. P1,000,000 c. P3,000,000 d. P750,000On February 5, 2001, an employee filed a P2,000,000 lawsuit against Steel 5 points Company for damages suffered when one of Steel’s plants exploded on December 29,2000. Steel’s legal counsel expects the company will losethe lawsuit and estimates the loss to be between P500,000 and P1,000,000. The employee has offered to settle the lawsuit out of court for P900,000, but Steel will not agree to the settlement. In its December 31, 2000 balance sheet, what amount should Steel report as liability from lawsuit? 2,000,000 1,000,000 900,000 500,000On February 5, 2001, an employee filed a P2,000,000 lawsuit against Steel Company for damages suffered when one of Steel’s plants exploded on December 29,2000. Steel’s legal counsel expects the company will lose the lawsuit and estimates the loss to be between P500,000 and P1,000,000. The employee has offered to settle the lawsuit out of court for P900,000, but Steel will not agree to the settlement. In its December 31, 2000 balance sheet, what amount should Steel report as liability from lawsuit? P2,000,000 P1,000,000 P900,000 P500,000
- Constant Company is being sued for P4, 000,000 for an injury caused to a child as a result of alleged negligence while the child was visiting the Constant Company plant in March 2018. The suit was filed in July 2018. Constant’s lawyer states that it is probable that Constant will lose the suit and be found liable for a judgement costing anywhere from P400, 000 to P2, 000,000. However the lawyer states that the most probable judgement is P1, 000,000. Instructions:How should Constant report the suit in its 2018 financial statements. Discuss the rationale for your answer. Include in your disclosures, if any, that should be made in Constant’s financial statementsIn August 2021, a company's worker was injured in the factory in an accident partially the result of his own negligence. The worker has sued the company for P800,000. The company's counsel believes it is possible but not probable that the outcome of the suit will be unfavorable, and that the settlement would cost the company from P250,000 to P500,000. At year-end, the company should A. disclose the existence of a contingent liability with a range of P250,000 to P500.000. B. disclose the existence of a contingent liability for P375,000. C. record a liability of P375.000. D. do nothing. A suit for breach of contract seeking damages of P2,400,000 was filed by an author against a company on October 4, 2021. The company's legal counsel believed that an unfavorable outcome is probable. A reasonable estimate of the award to the plaintiff is between P600,000 and P1,800,000. No amount within this range is a better estimate of potential damages than any other amount. At yearend, the company…Fresh Limited, a manufacturer of toothpaste, was taken to court over alleged defamation charges when the company accused a rival toothpaste manufacturer of fraud. Before year end (31 December 2018), the lawyer of Fresh Limited advised that, although losing the case was unlikely, legal fees and settlement costs could amount to $ 900 000 in the event that the court case was lost. On 04 February 2019, the judge presiding over the case ruled that Fresh should pay $ 1 000 000 to the plaintiff as well as pay all of the plaintiff's legal fees, which amounted to $ 180 000. The financial statements had not yet been authorized for issue at the time of the court ruling. Required: Discuss how this information should be treated in the financial statements of Fresh Limited for the year ended 31 December 2018
- Acme Corp. is being sued for $20,000,000 due to their continued provision of malfunctioning, dangerous products. One customer in particular grew frustrated with these failings and initiated the lawsuit. Acme Corp's sales are about $50 million per year. On December 31st, 2020, their lawyer states: "It's likely that we will win this case, and the lawsuit will probably be dropped shortly." On December 31st, 2021, their lawyer states: "We got unlucky with the judge that was chosen for the case, and only have a 50% chance of winning. I think we should probably settle. They should be happy to settle for $2,000,000." On December 31st, 2022, their lawyer states: "They didn't accept our settlement offer and we're gonna lose." Instructions 1) In accounting, what do we call this type of situation? 2) Detail the impact to the financial statements on December 31, 2020 and explain your rationale. 3) Detail the impact to the financial statements on December 31, 2021 and explain your rationale. 4)…On Feb. 5, 20x2, an employee filed a P 2,000,000 lawsuit against Steel Co. for damages suffered when one of the Steel's plants exploded on Dec. 29, 20x1. Steel's legal counsel expects the company will lose the lawsuit and estimates the lost to be between P 500,000 and P 1,000,000. The employee has offered to settle the lawsuit out of the court for P 900,000, but Steel will not agree to the settlement. In its Dec. 31, 20x1 balance sheet, what amount should Steel report as a liability from lawsuit?a. P 500,000b. P 900,000c. P 1,000,000d. P 2,000,000Sheila Company is engaged in the manufacture of chemicals which it exports to other countries. On December 25, 2021, one of its tanks in the production assembly plant exploded. Unfortunately one of its employees was caught by the accident and suffered severe burns all over his body. For damages sustained because of the explosion, the employee sued Sheila and claimed an amount totaling P10,000,000 for physical injuries sustained. The lawyers of Sheila expect that Sheila Company will probably lose the lawsuit and estimate that the company may have to pay an amount in the range of P5,000,000 to P8,000,000. On March 15, 2022, upon the advice of his lawyers, the injured employees offered to have an out of court settlement of P7,500,000. The offer was tendered on the same date and Sheila on the advice of its legal counsel accepted the said offer on March 20, 2022. Sheila’s financial statements for the year ended 2021 was issued on March 30, 2022. Sheila’s financial statements for the year…