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Business Accounting Financial Accounting

Journalize the contingent liabilities.

Journalize the contingent liabilities.

Solution Summary: The author explains that contingent liability is a potential liability that depends on an uncertain event. The company's legal counsel believes that the EPA fine and out-of-court settlement is probable.

Financial Accounting

Financial Accounting

15th Edition

ISBN: 9781337272124

Author: Carl Warren, James M. Reeve, Jonathan Duchac

Publisher: Cengage Learning

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Concept explainers

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the conting…

Question

Definition Definition Costs that a business is responsible for paying, should a particular event potentially occur in the future. Also called a potential liability, a contingent liability is generally recorded only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly. The Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Principles (IFRS) make it mandatory for the companies to record any contingent liability taking the principles of full disclosure, materiality, and prudence into consideration.

Chapter 11, Problem 22E

a.

To determine

Journalize the contingent liabilities.

b.

To determine

Prepare a note disclosure related to the incident.

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Chapter 11, Problem 21E

Chapter 11, Problem 23E

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Chapter 11 Solutions

Financial Accounting

Ch. 11 - Does a discounted note payable provide credit...Ch. 11 - Employees are subject to taxes withheld from their...Ch. 11 - Prob. 3DQ Ch. 11 - Prob. 4DQ Ch. 11 - Prob. 5DQ Ch. 11 - Prob. 6DQ Ch. 11 - Prob. 7DQ Ch. 11 - Prob. 8DQ Ch. 11 - When should the liability associated with a...Ch. 11 - Prob. 10DQ

Ch. 11 - Proceeds from notes payable On May 15, Maynard Co....Ch. 11 - Proceeds from notes payable On January 26, Nyree...Ch. 11 - Prob. 2PEA Ch. 11 - Prob. 2PEB Ch. 11 - Prob. 3PEA Ch. 11 - Prob. 3PEB Ch. 11 - Journalize period payroll The payroll register of...Ch. 11 - Journalize period payroll The payroll register of...Ch. 11 - Journalize payroll tax The payroll register of...Ch. 11 - Journalize payroll tax The payroll register of...Ch. 11 - Prob. 6PEA Ch. 11 - Prob. 6PEB Ch. 11 - Prob. 7PEA Ch. 11 - Prob. 7PEB Ch. 11 - Quick ratio Nabors Company reported the following...Ch. 11 - Quick ratio Adieu Company reported the following...Ch. 11 - Current liabilities Bon Nebo Co. sold 25,000...Ch. 11 - Entries for notes payable Cosimo Enterprises...Ch. 11 - Entries for discounting notes payable Ramsey...Ch. 11 - Evaluating alternative notes A borrower has two...Ch. 11 - Entries for notes payable A business issued a...Ch. 11 - Entries for discounted note payable A business...Ch. 11 - Entries for notes payable Bull City Industries is...Ch. 11 - Prob. 8E Ch. 11 - Calculate payroll An employee earns 25 per hour...Ch. 11 - Prob. 10E Ch. 11 - Summary payroll data In the following summary of...Ch. 11 - Payroll tax entries According to a summary of the...Ch. 11 - Payroll entries The payroll register for Gamble...Ch. 11 - Prob. 14E Ch. 11 - Prob. 15E Ch. 11 - Prob. 16E Ch. 11 - Accrued vacation pay A business provides its...Ch. 11 - Prob. 18E Ch. 11 - Prob. 19E Ch. 11 - Prob. 20E Ch. 11 - Accrued product warranty General Motors...Ch. 11 - Prob. 22E Ch. 11 - Quick ratio Gmeiner Co. had the following current...Ch. 11 - Prob. 24E Ch. 11 - Liability transactions The following items were...Ch. 11 - Entries for payroll and payroll taxes The...Ch. 11 - Wage and tax statement data on employer FICA tax...Ch. 11 - Prob. 4PA Ch. 11 - Payroll accounts and year-end entries The...Ch. 11 - Prob. 1PB Ch. 11 - Entries for payroll and payroll taxes The...Ch. 11 - Wage and tax statement data and employer FICA tax...Ch. 11 - Prob. 4PB Ch. 11 - Payroll accounts and year-end entries The...Ch. 11 - Prob. 3CPP Ch. 11 - Ethics in Action Tonya Latirno is a staff...Ch. 11 - Prob. 2CP Ch. 11 - Communication WBM Motorworks is a manufacturer of...Ch. 11 - Recognizing pension expense The annual examination...Ch. 11 - Prob. 7CP

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