User Account

All Pages

What total amount of provision should recognized on december

Assignment Help Accounting Basics
Reference no: EM133108713

Question - Misamis Company provided the following information on December 31, 2020:

In July 2020, the company became involved in a litigation. In December 2020, the court assessed a judgment for P2,400,000 against the company. The entity is appealing the amount of the judgment. The attorneys believed it is probable that the assessment can be reduced on appeal by 50%. The appeal is expected to take at least six months.

In August 2020, Manila City brought action against the company for polluting the Manila Bay with its waste products. It is probable that Manila City will be successful but the amount of damages the entity might have to pay should not exceed P3,000,000.

The company has signed as a guarantor for three separate loans: P1,200,000 loan by BPI to Oriental Company. At this time, there is only a remote likelihood that the company will have to make payment on behalf of Oriental Company.

P250,000 loan by BDO to Long Company. By reason of financial difficulties, it is probable that the company shall pay the P250,000 loan with only a 20% recovery anticipated from Long Company.

P500,000 loan by PNB to Shorty Company. By reason of financial difficulties, it is likely that the company shall pay the P500,000 loan with no recovery anticipated from Long Company.

The company has been sued for patent infringement and lost the case. A preliminary judgment of P300,000 was issued and is under appeal. The company's attorneys agree that it is probable that the company will lose this appeal.

Required - What total amount of provision should be recognized on December 31, 2020?

Reference no: EM133108713

Questions Cloud

Management and the environment of management short paper : We will always need effective and efficient managers and leaders. We need thoughtful, productive, intelligent people to pursue management who have common sense
Determine the amount of us taxable income : Determine the amount of U.S. taxable income, U.S. foreign tax credit, and net U.S. tax liability related to the British branch (all in U.S. dollars)
Implications of implicit biases : 1. How would you describe implicit bias to someone who has never heard of it?
Identify similarities within the two frameworks : You will choose two ethical theories and compare their similarities and differences. Identify similarities within the two frameworks.
What total amount of provision should recognized on december : In December 2020, the court assessed a judgment for P2,400,000 against the company. What total amount of provision should recognized on December
What is the type of diversity : It is well established that diversity is valuable to an organization. But let's drill down and think about what we mean by this.
Data collection techniques of quantitative : Compare and contrast the data collection techniques of quantitative and qualitative research methodologies. Discuss the advantages and limitations associated wi
Trends that are affecting human resource management : There are many changes and trends that are affecting human resource management. List two of them and offer suggestions on how to respond to these changes/trends
What is the future value of the cash flows : What is the future value of the cash flows at the end of year 3 at a 5% discount rate? Based on above, should this project be accepted

Reviews

Write a Review

Accounting Basics Questions & Answers

  Do you feel that annette is acting ethically

Do you feel that Annette is acting ethically? As the accountant in this situation, how do you explain the discrepancy in the numbers?

  Prepare the operating section of a statement of cash flows

When using the indirect method to prepare the operating section of a statement of cash flows, which of the following is added to net income

  Compute lok total asset turnover

Lok Co. reports net sales of $4,795,000 for 2016 and $7,927,000 for 2017. Compute Lok's total asset turnover for 2016 and 2017

  Calculate the unit production cost under variable costing

Variable manufacturing overhead $8 per unit Fixed manufacturing overhead $550,000. Calculate the unit production cost under variable costing

  Preparing merchandise purchase budget

Palermo Wholesalers is preparing its merchandise purchases budget. Budgeted sales are $408,000 for April and $485,000 for May. Cost of goods sold is expected to be 64% of sales.

  What after-tax net cash flow will pacific receive

If its marginal tax rate is 40 percent, what after-tax net cash flow will Pacific receive when the machine is sold in four years

  Provide the entries to record the monthly lease payments

Provide the entries to record the monthly lease payments for the first year on the books of Hawkeye Aviation properly recognizing monthly rent expense

  Database technology may eliminate the need for double-entry

database technology may eliminate the need for double-entry accounting. this creates three possibilities 1 the

  What is the expected dollar profit from speculation

Assume that you would like to trade £4,000,000 in the forward market. What is the expected dollar profit from speculation

  What is the yield to maturity

A bond with a 5 percent coupon ($50 a year) that matures after eight years is selling for $779. What is the yield to maturity

  Total manufacturing cost per unit

The following department data are available: Total materials costs $180,000 Equivalent units of materials 60,000 Total conversion costs $105,000 Equivalent units of conversion costs 30,000 What is the total manufacturing cost per unit?

  What are the pros and cons related to each given method

Compare the two different methods that can be used to account for uncollectible accounts? What are the pros and cons related to each method?

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