ROSE Company entered into a lawsuit on December 20, 2021

Q: Maria Clara Company carried a provision of P4,000,000 in the draft financial statements for the year…

A: The total final damages to be paid by the company is P6000000

Q: On July 1, 2018, Apache Company sold a parcel of undeveloped land to a construction company for…

A: The given information is: On July 1, 2018, Apache Company, a real estate developer, sold a parcel of…

Q: Blette Company is the defendant in a lawsuit filed by Kale in 2021 disputing the validity of a…

A: In simple terms contingent liability indicates a potential liability. It may or may not get…

Q: During 2021, Angela Inc. was sued by a competitor for P5,000,000 for infringement of a patent. Based…

A: As per IAS 10, Events after the reporting period, The period between the reporting date and the date…

Q: In early January 2020, HUMID Corporation applied for a trade name, incurring legal costs of…

A: As per PFRS cost of intangible asset is it's purchase price or cost incurred after technical…

Q: On January 2, 2016, Affable Co. incurred legal fees and other costs associated with registration of…

A: The total amount of expense that Affable should report in its 2022 income statement related to the…

Q: Xavier Corporation begins business on March 1, 2021. The corporation incurs start-up expenditures of…

A: Note: Immediate Deduction Under § 195=$5,000Any start-up costs over $50,000 is deducted from $5,000.

Q: Garth, Corporation and Waite Inc. are privately held entities with a September 30 fiscal year end.…

A: Contingent liabilities are those liabilities whose coming into existence depends on some future…

Q: Jung Inc. owns a patent for

A: Under US GAAP, if the carrying value (book value) is greater than undiscounted expected future cash…

Q: In 2022, Firm L purchased machinery costing $21,300 and elected to expense the entire cost under…

A: Section 179 allows business's to deduct the expense of qualified asset in the first year of use for…

Q: On July 1, 2025, Waterway Inc. made two sales. 1. 2. It sold land having a fair value of $913,050 in…

A: The journal entry is a way to record the business transactions in the accounting records. The…

Q: Michael Inc., a publicly accountable entity, sells specialized equipment on December 31,

A: ASPE is Accounting Standards for Private Enterprises in Canada.  This is for small and…

Q: The company has the opportunity to engage in a transaction that will generate a total cash of…

A: The present value of receipts is computed by multiplying the gross receipts with the discounting…

Q: petty peter pty paid the following legal expenses to attorneys for the 2022 year of assessment: R5…

A: In this problem, we are asked to compute the total legal expense that will be deducted while…

Q: On January 11, 2022, The Hughes Company applied for a tradename. Legal costs associated with the…

A: The intangible assets of a company are referred to as all those long-term assets that do not have a…

Q: se Company provided the following information aber 31, 2020: personal injury liability suit for…

A: Contingent liabilities are those liabilities or obligations whose possibilities to arise in future…

Q: Morley Manufacturing has notes receivable that have a fair value of P810,000 and a carrying amount…

A: Note receivable is the amount that is due to be received by the company on the note issued. It is an…

Q: On December 28, 2022, Anne Company commits itself to purchase a financial asset to be classified as…

A: The gain to be recognized on the settlement date concerning the held for trading security is the…

Q: On Nov. 25, 2017, an explosion occurred at Stefan company causing extensive property damage to area…

A: Liability is the amount which the business owes to creditors of the company. While as, contingent…

Q: Garth, Corporation and Waite Inc. are privately held entities with a September 30 fiscal year end.…

A: The question is related to Contingent liability. A contingent liability is:  (a) a potential…

Q: In early January 2020, HUMID Corporation applied for a trade name, incurring legal costs of…

A: Trademark shall be measured at costs that are directly associated with its registration. In other…

Q: On January 30, 2016, a suit was filed against Frazier Corporationunder the Environmental Protection…

A:

Q: Delco Berhad operates a defined benefit plan. At the end of the year, the company has the following…

A: On 31 December 2018, Celco Berhad will report a net liability in the statement of financial…

Q: In early January 2024, Bramble Corporation applied for a trade name, incurring legal costs of…

A: Amortization is calculated by dividing the value of intangible assets by its useful life. It is…

Q: Use the following information for questions 6 and On December 31, 2018, Garnel Co. is in financial…

A: Net book value of the Equipment = Original cost - Accumulated depreciation Gain (loss) on the…

Q: Canadian Colour Company (CCC) purchased GST-taxable supplies from Polaroid Canada worth $32,000.00…

A: During 2019, Canadian Color Company(CCC) purchased GST taxable supplies from Polaroid Canada =…

Q: At what amount should the non-current liability be presented in the statement of financial position?

A: According to IAS 1, a noncurrent liability is one that is not a current liability Further, the…

Q: Required a. Prepare all related journal entries (including simple narration) for the year ended 31…

A: Fair Value Model in Investment Assets A rental property is initially valued at cost. According to…

Q: Tran Technologies licenses its functional intellectual property to Lyon Industries. Terms of the…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: (b) Your answer is incorrect. On January 1, 2025, Flounder Corporation purchased 349 of the $1,000…

A: Notes:- Subpart (a) is correct. Therefore I'm solving only subpart (b).     Bonds :— It is one of…

Q: Tang company is the defendant in a lawsuit filed by wong in 2019 disputing the validity of copyright…

A: SOLUTION CONTINGENT LIABILITY IS A LIABILITY OR A POTENTIAL LOSS THAT MAY OCCUR IN FUTURE DEPENDING…

Q: Garth, Corporation and Waite Inc. are privately held entities with a September 30 fiscal year end.…

A: ASC 450-20-25-2 states the conditions to be met to recognize contingency loss. AS per ASC, Based on…

Q: Record journal entries for the following transactions for Sultan Private School during the year…

A: Journal entry is the process of recording the business transactions in the books of accounts for the…

Q: The Commonwealth of Virginia filed suit in October 2022 against Northern Timber Corporation, seeking…

A: Contingent liabilities disclosure in financial statements refers to the detailed presentation and…

Q: unkies Limitéd häs än assésséd lošs 2022 tax year the company earned a of R110 000. One creditor, to…

A: (A) Gross Income                =      R4,80,000 (B) Deductible Expenses     =      R1,10,000 (C)…

Q: In May 2021, Cruiser Company filed suit against Stallman, Inc.  seeking P850,000 damages for patent…

A: Contingent assets are those probable assets whose existence would be confirmed through the non-…

Q: In 2019, entity A sold goods to its subsidiaries (entities B and C) for P500,000 and P400,000,…

A: Related party transactions refer to the dealings between two or more parties which have common…

Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.