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Business Accounting Gen Combo Ll Financial Accounting: Information For Decisions; Connect Ac

a. Introduction : Adjusting entries are to be passed before finalization of the financial statements. These entries are passed to reconcile any differences arising due to mismatch of accounting concepts. The objective of passing adjusting entries is to ensure that profit and loss account and balance sheet are updated as per the accrual basis of accounting. To determine : The adjusting entries for M No adjusting entry is required. The given guarantee is contingency and contingent liabilities are recorded only when they are probable and can be estimated. In the given case, the liability of $100,000 can be estimated, however, it is not probable that the supplier will default on the debt. Therefore, no adjustment is required since, both the conditions of the recording the contingent liability is not met As per the contingent liability’s treatment in the financial statement, if an event is not probable or unlikely to incur, the same shall not be recorded in the financial statements. Hence, the guarantee provided by the company of $100,000 shall not be recorded in the financial statements. As such no adjusting entry shall be passed. b. Introduction : Adjusting entries are to be passed before finalization of the financial statements. These entries are passed to reconcile any differences arising due to mismatch of accounting concepts. The objective of passing adjusting entries is to ensure that profit and loss account and balance sheet are updated as per the accrual basis of accounting. To determine : The adjusting entry for M. No adjusting entry is required. The given contingency is not probable to occur and hence shall only be reported in the financial statements as notes to the balance sheet. Therefore, no adjustment is required As per the contingent liability’s treatment in the financial statement, if an event is not probable or unlikely to incur, the same shall not be recorded in the financial statements. In the given scenario, the company is sued by a disgruntled employee and the legal advisors inform the company that the damages are probable. The damage is not estimable and hence only disclosure in the financial statements as notes to the balance sheet shall be made. As such no adjusting entry shall be passed

a. Introduction : Adjusting entries are to be passed before finalization of the financial statements. These entries are passed to reconcile any differences arising due to mismatch of accounting concepts. The objective of passing adjusting entries is to ensure that profit and loss account and balance sheet are updated as per the accrual basis of accounting. To determine : The adjusting entries for M No adjusting entry is required. The given guarantee is contingency and contingent liabilities are recorded only when they are probable and can be estimated. In the given case, the liability of $100,000 can be estimated, however, it is not probable that the supplier will default on the debt. Therefore, no adjustment is required since, both the conditions of the recording the contingent liability is not met As per the contingent liability’s treatment in the financial statement, if an event is not probable or unlikely to incur, the same shall not be recorded in the financial statements. Hence, the guarantee provided by the company of $100,000 shall not be recorded in the financial statements. As such no adjusting entry shall be passed. b. Introduction : Adjusting entries are to be passed before finalization of the financial statements. These entries are passed to reconcile any differences arising due to mismatch of accounting concepts. The objective of passing adjusting entries is to ensure that profit and loss account and balance sheet are updated as per the accrual basis of accounting. To determine : The adjusting entry for M. No adjusting entry is required. The given contingency is not probable to occur and hence shall only be reported in the financial statements as notes to the balance sheet. Therefore, no adjustment is required As per the contingent liability’s treatment in the financial statement, if an event is not probable or unlikely to incur, the same shall not be recorded in the financial statements. In the given scenario, the company is sued by a disgruntled employee and the legal advisors inform the company that the damages are probable. The damage is not estimable and hence only disclosure in the financial statements as notes to the balance sheet shall be made. As such no adjusting entry shall be passed

Solution Summary: The author explains that the objective of adjusting entries is to ensure that profit and loss account and balance sheet are updated as per the accrual basis of accounting.

Gen Combo Ll Financial Accounting: Information For Decisions; Connect Ac

Gen Combo Ll Financial Accounting: Information For Decisions; Connect Ac

9th Edition

ISBN: 9781260260779

Author: Wild

Publisher: MCG

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Gen Combo Ll Financial Accounting: Information For Decisions; Connect Ac

Ch. 9 - Prob. 1DQ Ch. 9 - Prob. 2DQ Ch. 9 - Prob. 3DQ Ch. 9 - What is the combined amount (in percent) of the...Ch. 9 - What is the current Medicare tax rate? This rate...Ch. 9 - Prob. 6DQ Ch. 9 - Prob. 7DQ Ch. 9 - Prob. 8DQ Ch. 9 - Why are warranty liabilities usually recognized on...Ch. 9 - Prob. 10DQ

Ch. 9 - Prob. 11DQ Ch. 9 - Prob. 12DQ Ch. 9 - Prob. 13DQ Ch. 9 - Prob. 14DQ Ch. 9 - Prob. 15DQ Ch. 9 - Prob. 16DQ Ch. 9 - Prob. 1QS Ch. 9 - Prob. 2QS Ch. 9 - Ticketsales, Inc., receives $5,000,000 cash in...Ch. 9 - Prob. 4QS Ch. 9 - Prob. 5QS Ch. 9 - Prob. 6QS Ch. 9 - Prob. 7QS Ch. 9 - Prob. 8QS Ch. 9 - Prob. 9QS Ch. 9 - Prob. 10QS Ch. 9 - Prob. 11QS Ch. 9 - Prob. 12QS Ch. 9 - Sera Corporation has made and recorded its...Ch. 9 - Prob. 15QS Ch. 9 - Prob. 1E Ch. 9 - Prepare any necessary entries at December 31 for...Ch. 9 - Prob. 3E Ch. 9 - Prob. 4E Ch. 9 - Prob. 5E Ch. 9 - Prob. 6E Ch. 9 - Prob. 7E Ch. 9 - Prob. 8E Ch. 9 - Prob. 9E Ch. 9 - Hitzu Co. sold a copier costing $4,800 with a...Ch. 9 - Prob. 11E Ch. 9 - Prob. 12E Ch. 9 - Prob. 13E Ch. 9 - Prob. 14E Ch. 9 - Prob. 15E Ch. 9 - Prob. 16E Ch. 9 - Prob. 18E Ch. 9 - Prob. 19E Ch. 9 - Prob. 1PSA Ch. 9 - Prob. 2PSA Ch. 9 - Paloma Co. has four employees. FICA Social...Ch. 9 - Prob. 4PSA Ch. 9 - Shown here are condensed income statements for two...Ch. 9 - Prob. 6PSA Ch. 9 - Warner Co. entered into the following transaction...Ch. 9 - Prob. 2PSB Ch. 9 - Fishing Guides Co. has four employees. FICA Social...Ch. 9 - On November10, 2017, Lee Co. began operations by...Ch. 9 - Shown here are condensed income statements for two...Ch. 9 - Prob. 6PSB Ch. 9 - Prob. 9SP Ch. 9 - Prob. 1GLP Ch. 9 - Prob. 1FSA Ch. 9 - Prob. 2FSA Ch. 9 - Prob. 3FSA Ch. 9 - Prob. 1BTN Ch. 9 - Prob. 2BTN Ch. 9 - Assume that your team is in business and you must...Ch. 9 - Prob. 5BTN

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