User Account

All Pages

Find and determine a provision should be recognised

Assignment Help Financial Accounting
Reference no: EM132719465

Collingwood Pty Ltd has the following obligations:

  • It has agreed to repair faulty surfboards that it has sold. Evidence indicates that of the 2,000 surfboards that were produced in overseas factories, about 20% use defective fibreglass 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 employees. Under the arrangement, if employees stay for a period of ten 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 this 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 recognised and provide a rationale for your response.

Reference no: EM132719465

Questions Cloud

Compute what was the cost of goods manufactured for month : Find What was the cost of goods manufactured for the month? Beginning finished goods inventory$74,000. Ending finished goods inventory$73,000
Prepare a vertical analysis of the income statement : Income statement information for Einsworth Corporation follows: Prepare a vertical analysis of the income statement for Einsworth Corporation
How important are budgets to criminal justice agencies : How important are budgets to criminal justice agencies? What different types of issues can occur during budgetary planning?
Organizational behavior - krs home care inc : Organizational Behavior - KRS Home Care Inc - please write references
Find and determine a provision should be recognised : For the above transactions and events determine whether a provision should be recognised and provide a rationale for your response.
Ethics and integrity in criminal justice system : This assignment will provide you with the opportunity to examine the importance of ethics and integrity in the criminal justice system.
How much will she have to spend on her vacation : Jocelyn wants to set aside funds to take an around the world cruise in four years. Assuming that Jocelyn has $12,000 to invest today in an account expected.
What is the mirr at a interest rate : A project costs $22900 to initiate. It's expected to provide cash flows of $15,900 in year 1 and $9900 in year 2, in year 3 it will cost $5,500
What is the amount of bad debt expense to recognize : Molina Company had a $700 credit balance in Allowance for Doubtful Accounts. What is the amount of bad debt expense to recognize for the year

Reviews

Write a Review

Financial Accounting Questions & Answers

  Distinguishing characteristic of deferral

Which of the following is a distinguishing characteristic of a deferral? As supplies and PPE assets on the balance sheet are consumed, they are reflected: Which of the following does not affect stockholders' equity?

  What is the payback period for the new machine

A company is considering the purchase of a new machine for $48,000. Management predicts that the machine can produce sales of $16,000 each year for the next 10 years. Expenses are expected to include direct materials, direct labor, and factory overhe..

  The bonus in gross income

Lupe, a cash basis taxpayer, owns 55% of the stock of Jasper Corporation, a calendar year accrual basis C Corporation. On December 31, 2014, Jasper accrues a performance bonus of $100,000 to Lupe that it pays to him on January 15, 2015. In which year..

  Calculate the break even point for the device in months

Paul Scott has a 2008 Cadillac that he wants to update with a GPS system so that he will have access to up-to-date road maps and directions. Aftermarket equipment can be fitted for a flat fee of $500, and the service provider requires monthly charges..

  Couch division sales and chair division sales

What is the ROI for the couch division (rounded to the nearest tenth of a percent). The following information is for two divisions at Wiley Company. Couch Division Sales and Chair Division Sales.? $6,000,000 operating income ? $560,000 operating prof..

  What depreciation method is apparently being used

What the original cost of the machine was. What depreciation method is apparently being used. Explain your answer. When the machine was acquired.

  How do prepare the adjusting journal entry on december

At December 31, the unadjusted trial balance of H & R Tacks reports Software of $18,500. Prepare the adjusting journal entry on December 31.

  What net gain should be reported for discontinued operations

Disregarding income taxes, what net gain should be reported for discontinued operations in Green''s 2015 income statement?

  Compute the net increase or decrease in net income

Compute the net increase or decrease in net income for the month from the recognition of the adjustments in (1). (Ignore income taxes.)

  Does the taxpayer recognize gross income

Does the taxpayer recognize gross income in the following situations? Ava is a filing clerk at a large insurance company. She is permitted to leave the premises for lunch, but she usually eats in the company's cafeteria because it is quick and she is..

  Processed further with additional costs

Binge Company manufactures products S1 and S2 from a joint process. Product S1 has been allocated $5,000 of total joint costs of $25,000 for the 2,000 units produced. S1 can be sold at the splitoff point for $5 per unit, or it can be processed furthe..

  Make the necessary journal entries to record of changes

Make the necessary journal entries to record each of the changes or errors. The books for 2020 have been adjusted but not closed.

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