Write a short note to the client explaining the difference between a liability of an unknown amount and a contingent liability and also make suggestion the manner by which the particular situation must be accounted.

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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 9, Problem 1WC

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Write a short note to the client explaining the difference between a liability of an unknown amount and a contingent liability and also make suggestion the manner by which the particular situation must be accounted.

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Refer to the information given below: a. The June 30 cash balance in the general ledger is $1,940. b. The June 30 balance shown on the bank statement is $1,168. c. Checks issued but not returned with the bank statement were Number 712 for $33 and Number 723 for $160. d. A deposit made late on June 30 for $800 is included in the general ledger balance but not in the bank statement balance. e. Returned with the bank statement was a notice that a customer's check for $120 that was deposited on June 24 had been returned because the customer's account was overdrawn. f. During a review of the checks that were returned with the bank statement, it was noted that the amount of Check Number 728 was $72 but that in the company's records supporting the general ledger balance, the check had been erroneously recorded as a payment of an account payable in the amount of $27. Required: Prepare a bank reconciliation as of June 30 from the above information. Note: Total the entries of the same account…

Answer 2

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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 9, Problem 1WC

To determine

Write a short note to the client explaining the difference between a liability of an unknown amount and a contingent liability and also make suggestion the manner by which the particular situation must be accounted.

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Answer 3

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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 9, Problem 1WC

To determine

Write a short note to the client explaining the difference between a liability of an unknown amount and a contingent liability and also make suggestion the manner by which the particular situation must be accounted.

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Answer 4

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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 9, Problem 1WC

To determine

Write a short note to the client explaining the difference between a liability of an unknown amount and a contingent liability and also make suggestion the manner by which the particular situation must be accounted.

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Answer 5

Chapter 9, Problem 1WC

To determine

Write a short note to the client explaining the difference between a liability of an unknown amount and a contingent liability and also make suggestion the manner by which the particular situation must be accounted.

Answer 6

Chapter 9, Problem 1WC

To determine

Write a short note to the client explaining the difference between a liability of an unknown amount and a contingent liability and also make suggestion the manner by which the particular situation must be accounted.

Answer 7

Chapter 9, Problem 1WC

To determine

Write a short note to the client explaining the difference between a liability of an unknown amount and a contingent liability and also make suggestion the manner by which the particular situation must be accounted.

Answer 8

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Answer 9

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Answer 11

Ch. 9.A - Calculate employee payroll (Learning Objective 8)...Ch. 9.A - Calculate net pay (Learning Objective 8) 5-10 min....Ch. 9.A - Employer payroll costs (Learning Objective 8) 5-10...Ch. 9.A - Prob. 4AE Ch. 9.A - Prob. 5AE Ch. 9.A - Prob. 6AE Ch. 9.A - Prob. 7BE Ch. 9.A - Prob. 8BE Ch. 9.A - Calculating gross and net pay (Learning Objective...Ch. 9.A - Prob. 10AP

Write a short note to the client explaining the difference between a liability of an unknown amount and a contingent liability and also make suggestion the manner by which the particular situation must be accounted.

Solution Summary: The author explains the difference between a contingent liability and an unknown liability, and suggests the manner by which the particular situation must be accounted for.

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Write a short note to the client explaining the difference between a liability of an unknown amount and a contingent liability and also make suggestion the manner by which the particular situation must be accounted.

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