Reference no: EM132569652
Question - Below are three independent situations.
1. In August, 2011 a worker was injured in the factory in an accident partially the result of his own negligence. The worker has sued his employer, Simon Corp, for $800,000. Simon's legal counsel believes it is possible that the outcome of the suit will be unfavourable and that the settlement would cost the company from $250,000 to $500,000.
2. A suit for breach of contract seeking damages of $1,200,000 was filed by an author against Eller Co. on October 4, 2011. Eller's legal counsel believes that an unfavourable outcome is more likely than not. A reasonable estimate of the award to the plaintiff is between $300,000 and $900,000. No amount within this range is a better estimate of potential damages than any other amount.
3. Pratt is involved in a pending court case. Pratt's lawyers believe it is likely that Pratt will be awarded damages of $1,500,000.
Required - For each independent situation above, discuss the proper accounting treatment, including any required disclosures for the situation. Give the rationale for your answers. Assume all companies involved use IFRS.
How much the preferred and common shareholders will receive
: Graziano Corp. has been authorized to issue 20,000 no par, $6, Calculate how much the preferred and common shareholders will receive
|
Calculate the balance in the allowance for doubtful accounts
: Calculate the balance in the allowance for doubtful accounts at December 31, 2021. THE Company uses the net credit sales method to estimate bad debt
|
Prepare the journal entry to record the bond issuance
: On July 1, 2011, Markov Corp. issued $400,000 par value, 10%, 10-year bonds dated July 1, 2011, Prepare the journal entry to record the bond issuance
|
Calculate the company cost of goods available for sale
: Calculate THE Company's cost of goods available for sale for 2021. The information was taken from THE Company's accounting records for 2021
|
Discuss the proper accounting treatment
: Discuss the proper accounting treatment, including any required disclosures for the situation. Give the rationale for your answers
|
Calculate the company net cash flows from financing activity
: Calculate THE Company's net cash flows from financing activities for 2021. THE Company reported the selected account balances for 2021.
|
What is trait linked to sex
: What is a trait linked to sex? What is the difference in inheritance between boy and girl for traits linked to sex?
|
What the company collected cash from credit customers
: What THE Company collected cash from its credit customers during 2023 in the amount of?THE Company uses the aging method to estimate its bad debt expense.
|
What is the general purpose of an auditors report
: GeoPetro is independent oil and natural gas Company with headquarters in San Francisco, California. What is the general purpose of an auditors report
|