User Account

All Pages

Determine whether a provision should be recognized

Assignment Help Financial Accounting
Reference no: EM132678227

Collingwood Pty Ltd has the following obligations:

  • It has agreed repair faulty surfboards that it has sold. Evidence indicates that of the 2,000 surfboards that were produces in overseas factories, about 20% use defective fiberglass that will need to be replaced at an expected cost of about $250 per surfboard
  • It has a policy of providing long service leave to its employee. Under the arrangement, if the employees stay for a period of then years then they are entitled to an additional 15 weeks of holidays. Collingwood Pty Ltd believes it can reliably estimate how much the current years operations have contributed to the obligation.
  • Collingwood Pty Ltd has an amount owing to its overseas supplier of $70,000, which it expects to pay in the next month.
  • Collingwood Pty Ltd has a bank loan of $500,000.

Problem 1: For the above transactions and events determine whether a provision should be recognized and provide a rationale for your response.

Reference no: EM132678227

Questions Cloud

What amount should be reported as noncurrent deferred tax : What amount should be reported as noncurrent deferred tax liability at year-end? Related asset classification - Noncurrent.,Additional cost in inventory for tax
What is the taxpayer basic tax liability : What is the taxpayer's basic tax liability for the 2020 income tax year? A taxplayer gives information for the 2019 income tax year
Calculate the post-tax weighted average cost of capital : Calculate the post-tax weighted average cost of capital (WACC) for Minelli Enterprises Ltd using the market valuation approach (show all workings).
Provide the journal entries that richmond pty ltd would use : Richmond Pty Ltd constructed a Giant Machine. Provide the journal entries that Richmond Pty Ltd would use for the construction of the asset
Determine whether a provision should be recognized : Collingwood Pty Ltd has the obligations. Determine whether a provision should be recognized and provide a rationale for your response.
Calculate the value of nine-month american call option : An Australian company has just bought some Canadian. Calculate value of nine-month American call option on Canadian dollars using a three-step binomial tree.
Show dow chemical journal entry made to record settlement : Show Dow Chemical journal entry made to record the settlement. In June of 2019, Dow's lawyers believed it was probably going to lose and would have to pay
Record candlestick journal entry to redeem the bonds : Record candlestick journal entry to redeem the bonds. Candlestick Park issued $ 10,000,000, 8%, 20-year bonds at 98 on January 1, 2002.
Calculate the adjusted carrying value of the asset at dec : At Dec 31, 2021, the equipment now has a new use in the market. Calculate the adjusted carrying value of the asset at Dec 31, 2021 Under IFRS

Reviews

Write a Review

Financial Accounting Questions & Answers

  Compute the largest depreciation deduction

LB Corporation purchased a business car in June 2015 for $42,000. The car weighs 4,000 pounds and will be used 100 percent of the time in the business. Compute the largest depreciation deduction possible in 2015. No other property purchases were made..

  Compute lawrences accrual-based income

Chase Company owns 80% of Lawrence Company and 40% of Ross Company. Lawrence Company also owns 30% of Ross Company. Separate operating incomes for 2013 of Chase, Lawrence, and Ross are $450,000, $300,000, and $250,000, respectively. Each company also..

  Prepare the journal entry to record the notes payable

Prepare the journal entry to record the notes payable, the adjusting entry required at december 31, and final payment at the maturity date.

  How to determine the terminal cash flow expected

Speedy Auto Wash, How to Determine the terminal cash flow expected at the end of year 5 from the proposed washer replacement.

  Prepare a condensed multiple-step income statement

Prepare a condensed multiple-step income statement. Assume a tax rate of 30% and 100,000 shares of common stock outstanding during 2014.

  History of conflict with female employees

Leonard Bailey is one of several partners in a medium sized (50 employees) CPA firm. Wilma Lawrence is the controller of ABC Manufacturing, one of Leonard’s clients. She has been with the company for 28 years and is very protective of what she consid..

  Determine the total labor variance

Keating and Sons, a CPA firm, established the following standard labor cost data for completing what the firm referred to as a Class 2 tax return. Keating expected each Class 2 return to require 3.0 hours of labor at a cost of $37 per hour. Determine..

  What is the goal of operating segments

What is an operating segment as defined by AASB 8? Who is the chief operating decision maker and how are the reportable segments determined?

  Market interest rate for bonds of similar risk and maturity

Ultimate Butter Popcorn issues 7%, 20-year bonds with a face amount of $60,000. The market interest rate for bonds of similar risk and maturity is 6%. Interest is paid semiannually. At what price will the bonds issue? (FV of $1, PV of $1, FVA of $1, ..

  What amount of the adjustment for uncollectible accounts

The allowance for uncollectible accounts should be 5% of accounts receivable. The amount of the adjustment for uncollectible accounts would be

  What is the individuals ordinary income-loss

An individual has the following recognized gains and losses from section 1231 assets:$15,000 gain, $10,000 loss, $25,000 gain and $2,000 loss. The individual has a $5,500 section 1231 lookback loss. The individual has a $16,000 net short term capital..

  Calculation of lease amount for the given datapayment that

calculation of lease amount for the given data.payment that wrenn will require from contech? assume a marginal tax rate

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