Thompson Ltd must pay damages in relation to a drilling project environmental disaster. What would be included in the journal entry, assuming that the company created a provision for $15 000 two months ago but the actual damages were $16 550? DR Provision for environmental disaster 16 550 DR Loss on environmental disaster 16 550 DR Provision for environmental disaster 15 000 CR Cash 15 000
Thompson Ltd must pay damages in relation to a drilling project environmental disaster. What would be included in the journal entry, assuming that the company created a provision for $15 000 two months ago but the actual damages were $16 550? DR Provision for environmental disaster 16 550 DR Loss on environmental disaster 16 550 DR Provision for environmental disaster 15 000 CR Cash 15 000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Thompson Ltd must pay damages in relation to a drilling project environmental disaster. What would be included in the journal entry , assuming that the company created a provision for $15 000 two months ago but the actual damages were $16 550?
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DR Provision for environmental disaster 16 550
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DR Loss on environmental disaster 16 550
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DR Provision for environmental disaster 15 000
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CR Cash 15 000
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