Problem 3-9 (IFRS)Caroline Company provided the following information onDecember 31, 2021:Jan. 15, 2022 P3,000,000 of accounts receivable waswritten off due to the bankruptcy of a majorcustomer.Feb. 14, 2022 A shipping vessel of Caroline with carryingamount of P5,000,000 was completely lost atsea because of a hurricane.Mar. 11, 2022 A court case involving Caroline as thedefendant was settled and the entity wasobligated to pay the plaintiff P1,500,000.Caroline previously recognized a P1,000,000liability for the suit because managementdeemed it probable that the entity would losethe case.Mar. 25, 2022 One of Caroline's factories with a carryingamount of P15,000,000 was completely razedby forest fires that erupted in its vicinity.The management of the entity. completed the draft of thefinancial statements for 2021 on February 10, 2022.On March 20, 2022, the board of directors authorized thefinancial statements for issue. The entity announced theprofit and other selected information on March 22, 2022.The financial statements were made available to shareholderson April 2, 2022 at the annual shareholders' meeting wherethe financial statements were approved.The financial statements were filed with the regulatoryagency the very next day.Required:1. Prepare adjusting entries on December 31, 2021 to reflectthe adjusting events after reporting period.2. Prepare the necessary disclosures to reflect thenonadjusting events after reporting period.

Journal entries shows the recording of transactions during an accounting year and every transaction…

On March 20, 2022, the board of directors authorized the financial statements for issue. The entity announced the profit and other selected information on March 22, 2022. The financial statements were made available to shareholders on April 2, 2022 at the annual shareholders' meeting where the financial statements were approved. The financial statements were filed with the regulatory agency the very next day. Required: 1. Prepare adjusting entries on December 31, 2021 to reflect the adjusting events after reporting period. 2. Prepare the necessary disclosures to reflect the nonadjusting events after reporting period.

On March 20, 2022, the board of directors authorized the financial statements for issue. The entity announced the profit and other selected information on March 22, 2022. The financial statements were made available to shareholders on April 2, 2022 at the annual shareholders' meeting where the financial statements were approved. The financial statements were filed with the regulatory agency the very next day. Required: 1. Prepare adjusting entries on December 31, 2021 to reflect the adjusting events after reporting period. 2. Prepare the necessary disclosures to reflect the nonadjusting events after reporting period.

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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