How should this casualty be reported

Assignment Help Financial Accounting
Reference no: EM13137884

In March 2011, an explosion occurred at Kirk Co.'s plant, causing damage to area properties. By May 2011, no claims had yet been asserted against Kirk. Kirk's management and legal counsel, however, concluded that it was reasonably possible that Kirk would be held responsible for negligence, and that $4,000,000 would be a reasonable estimate of the damages. Kirk's $5,000,000 comprehensive public liability policy contains a $400,000 deductible clause. In Kirk's December 31, 2010 financial statements, for which the auditor's fieldwork was completed in April 2011, how should this casualty be reported?

Reference no: EM13137884

Questions Cloud

Standards for direct labor and direct materials : Describe the procedures Jeff should use in setting standards for direct labor and direct materials.
Entropy explained the temperature reaches : Entropy explained in this solution, Liquid H2O at 8 MPa and 40 degrees C is heated reversibly at constant pressure until the temperature reaches 600 degrees C
Determine boyd taxable income and his total tax liability : During 2010, he earns gross revenues of $49,000 and incurs $6,000 of business expenses. His itemized deductions for the year are $80,000. Determine Boyd's taxable income and his total tax liability.
Calculating direct materials price variance : a. Calculate the direct materials price variance for May. b. Calculate the direct materials quantity variance for May. c. Calculate the direct labor wage rate variance for May. d. Calculate the direct labor efficiency variance for May.
How should this casualty be reported : In Kirk's December 31, 2010 financial statements, for which the auditor's fieldwork was completed in April 2011, how should this casualty be reported?
What is shown on schedule : What is shown on the schedule? What type of accounting system would seem to be required to produce this information? What type of knowledge, skills, and abilities would seem to be required to produce this form?
Apparent density and theoretical density and void volume : Apparent Density, Theoretical Density and Void Volume, A compacted body of iron powder is sintered into a 20mm-diameter, 45-mm-tall cylinder which, upon weighing
Company diluted earnings per share : Net income for the year ended December 31,2008, was $6,000. Assuming an income tax rate of 50 percent what would be the company's diluted earnings per share for the year ended December 31, 2008?
Public policy and leadership with public groups : Selecting a constituent group in the public sector. Assessing the sources and uses of power by this group. Determining how this group influences public policy and leadership decision making.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Evaluate amount of current liabilities

Evaluate amount of current liabilities does this firm have and How much long-term debt does the firm have

  Make a series of reports

Make a series of reports Whole period-end accounting activities (adjusting entries) Examine the firm via a series of questions (see the Check Your Progress- Project section of the project)

  Illustrate at what amount would the purchase on february

Assuming that Castro uses the periodic method for recording merchandise transactions, record the purchase, return, and payment using the gross method. Illustrate at what amount would the purchase on February 1 be recorded if the net method were use..

  Evaluate the amount of money in a savings account

Evaluate the amount of money in a savings account at the end of five years given an initial deposit of $3,000 and an 8 percent annual interest rate when interest is compounded (a) annually, (b) semiannually, and (c) quarterly.

  Evaluate the per unit variable cost

Given Garden House's current costs, will its owners be able to achieve their target profit? Evaluate the per unit variable cost for Garden House to achieve its target profit?

  Calculation of overhead variances

Calculation of Overhead Variances - Budget for actual hours of inputand find the Overhead Variances

  Purpose all worksheet eliminations in journal entry

Purpose all worksheet eliminations in journal entry form necessary to consolidate Crain and Downey

  Calculate the combined incremental tax rate to be used

A company pays an 11.5% state income tax and is in the 34% federal income tax bracket level. Calculate the combined incremental tax rate to be used for project analysis.

  Preparation of cash flow statement

Preparation of cash flow statement using the information given  - What impact would the 2007 cash surplus (deficit) have on their January 1, 2008 balance sheet?

  Do the benefits of sox justify costs

You have to prepare a 5-page cost/benefit analysis of the Sarbanes-Oxley Act. The focus of the paper should answer the subsequent

  Can she deduct all her expenses for meals and lodging

Taxpayer lives with her husband and children in City and works there. If her employer sends her to Metro (where she maintains an apartment) on business for three days and two nights each week and if Taxpayer is not reimbursed for her expenses. ..

  Illustrate what should campbell record as net deferred tax

The disparity between book income and taxable income is attributable to a temporary difference which will reverse in 2012. Illustrate what should Campbell record as net deferred tax asset

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!

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