User Account

All Pages

Cork''s financial statements

Assignment Help Accounting Basics
Reference no: EM13871676

On January 15, 2011, a truck driver for Cork Transfer Company negligently rounded a curve that was also a bridge covering several local merchant shops. The truck jumped the guardrail and fell 30 feet onto one of the shops, causing highly flammable chemicals in the truck to explode.Although by February 22, 2011 (the date on which Cork's financial statements for 2010 are issued), no claims had been filed against Cork, it fully expected that some will be filed in the future.

Required:
Explain the accounting treatment, if any, Cork should give the contingent loss occurring from the wreck in the December 31, 2010 financial statements. 

Reference no: EM13871676

Questions Cloud

Operations issues and improvements : What is and is not the assignment in my view? This discussion creates the boundaries for my term paper - Why are the three OM areas I have selected in need of improvement?
Classify sperm whales as a selected species : Would you classify sperm whales as an r-selected species, a K-selected species, or a species exhibiting both r and K attributes? Defend your answer. Criteria -150 words; cite any source(s) used.
What constitutes an insurable risk : What constitutes an insurable risk? List several insurable political risks. What operational strategies does the MNC have to protect itself against political risk?
Compute the cost of goods available for sale : Explain whether the transportation cost included in each purchase should be recorded as a cost of the inventory or immediately expensed. Compute the Cost of Goods Available for Sale, Cost of Goods Sold, and Cost of Ending Inventory using the first-in..
Cork''s financial statements : On January 15, 2011, a truck driver for Cork Transfer Company negligently rounded a curve that was also a bridge covering several local merchant shops.
What are intellectual property rights : What are intellectual property rights? How are they at risk when the MNC has foreign operations? What is an investment agreement? What conditions might it include?
List two producers and three consumers in the food web : Question - List two producers and three consumers in the food web.Criteria - 150 words; cite any source(s) used.
Remaining lifetime in association : 1. The fatigue life for a certain alloy at stress levels of σ1, σ2, and σ3 is 10,000, 50,000, and 500,000 cycles, respectively. If a component of this material is subjected to 2500 cycles of σ1 and 10,000 cycles of σ2, estimate the remaining lifet..
What is protectionism and how can it affect the mnc : What is protectionism, and how can it affect the MNC? What are blocked funds? How might they arise?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Estimate gain and net reduction in retained earnings

On that date, when the market price of Hunter was $14 per share, there were 90,000 shares of Pierson outstanding. What gain and net reduction in retained earnings would result from this property dividend?

  Kansas company uses a standard cost accounting system in

kansas company uses a standard cost accounting system. in 2014 the company produced 28000 units. each unit took several

  Is there any old exam 2 of comm 2010 that i can look over

is there any old exam 2 of comm 2010 that i can look over? it could be anything from 2011 to 2009. any materials of

  On january 1 molly corp purchased land with a usable

on january 1 molly corp. purchased land with a usable building on it for 240000. at the time of purchase the fair

  Differences between bac and eac

How would a project manager use the CPI? What are the differences between BAC and EAC?

  On may 31 2011 james logan company had a cash balance per

on may 31 2011 james logan company had a cash balance per books of 6781.50. the bank statement from farmers state bank

  Activity-based cost management problem

Activity-based cost management (ABM) can best be defined as:

  Hamblin co elects to use the percentage-of-sales basis in

hamblin co. elects to use the percentage-of-sales basis in 2014 to record bad debts expense. it estimates that 2 of net

  What is the ending balance of goods in process inventory

The production department started the month with the beginning goods in process inventory of $350,000. During the month, it was assigned the following costs: direct materials, $192,000; direct labor, $90,000; overhead applied at the rate of 30% of..

  How much did schiller pay in cash dividends

Schiller Company has stockholders" equity of $400,000 and net income of $72,000. It has a payout ratio of 18% and a return on assets ratio of 20%. How much did Schiller pay in cash dividends, and what were its average total assets?

  Hazel company has just purchased equipment that requires

hazel company has just purchased equipment that requires annual payments of 20000 to be paid at the end of each of the

  Foster which uses the high-low method reported an average

foster which uses the high-low method reported an average cost of 24 per unit at its lowest activity level when

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd