A lawsuit is an example of a contingent liability for the defendant. O True O False

Q: On June 25, AAA Repair Service extended an offer of $76,000 for land that had been priced for sale a...

A: As per historical cost principle, all costs which are incurred for purchase of asset and make the as...

Q: A pair of earrings is priced at P30,000. A client made a down payment of P5,000 and promised to pay ...

A: Price = P30,000 Down payment = P5,000 Balance (PV) = 30,000-5,000 = P25,000 Interest rate = 3% Month...

Q: Sunland Leasing Company agrees to lease equipment to Coronado Corporation on January 1, 2020. The fo...

A: Accounting for Leases There are mainly two types of leases are there one is operating leases and cap...

Q: The December 31, 2019 statement of financial position of Help Company included the following informa...

A: Notes Receivable is a form of current asset in which customers to whom goods and services are provid...

Q: he entry to recognize the distribution of welfare goods to intended recipients would include a debit...

A: Inventory means the stock of goods in hand . Goods means the thing in which the business deals and p...

Q: El1.1 (LO 1), AP C.S. Lewis Company had these transactions involving notes payable. Borrows $50,000 ...

A: journal entry for above transaction are as follows

Q: Steven and Son Inc. sells its car wash package for $180 per unit, its total variable costs per unit ...

A: Margin of safety is the difference between total sales value and breakeven sales value. Here, we can...

Q: At a rate of 5.5%, what is the present value of the following cash flow stream? Years 2 3 Cash Flows...

A: Present value: It implies to the value of future cash flows in today's date, discounted at a particu...

Q: Goring Corporation has Accumulated E otiレ

A: This is a multiple-choice question in which we have to choose the true statements. 

Q: On March 1, 2002, ABC Co. issued P700,000 of 10% bonds to yield 8%. Interest is payable semiannually...

A: The bonds are issued at premium when market rate is lower than the coupon rate of bonds payable.  

Q: On March 1, 2021, Jashen Dela Rosa, M.D., established the JDR Sports Rehab Clinic. Transactions comp...

A: Journal Entries - Journal Entries are the recording of transactions of the organization. It is recor...

Q: A short-term note payable: O Is a written promise to pay a specified amount on a definite future dat...

A: Short-term note payable is not a contingent and estimated liability because it has a definite amount...

Q: Financial information is presented below: Operating expenses $ 45000 Sales revenue 241000 Cost of go...

A: Gross Profit - Gross Profit is the profit margin earned on the units sold. Gross Profit is the profi...

Q: If bonds with a face value of $124000 are converted into common stock when the carrying value of the...

A: Bonds payable have a face value of $124000 which is shown in the statements. $6000 will be shown as ...

Q: Unlimited Doors showed supplies available during the year of $1,700. A count of the supplies on hand...

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in...

Q: A discount on bonds payable: O Occurs when a company issues bonds with a contract rate less than the...

A: Discount on bonds payable = Market rate - Contract rate

Q: On December 1. 2021 Ebenezer Buenaventura opened EB Computer Shop, by investing P250,000 cash from h...

A: Journal entry recording is the initial step in accounting process, under which atleast one account i...

Q: On August 31, 2022, Jackie agreed to purchase a parcel of land for P1,000,000 which the seller consi...

A: Capital gain refers to the income earned by selling a capital asset over and above its indexed cost ...

Q: Calculate cash flows with indirect method.

A: Income reported = $ 300000 Decreases in Accounts Receivable = $14500 Increase in accounts payable = ...

Q: O’Connor Company’s income statement iriformation for 2019 and 2020 ( a sole proprietorship) is as fo...

A: Under cost accounting formulas, Cost of goods sold = Beginning Inventory + Purchases - Purchase Retu...

Q: n January 1, 20x1, an entity issues bonds with face amount of P5,000,000 for P5,773,129. The bonds m...

A: The bonds are issued at premium when market rate is lower than the coupon rate of bonds payable.

Q: On January 1, 2022, BTS Company purchased 3,000, P1,000 face value term bons with a stated rate of 1...

A:

Q: a. Create cashflow from this case b. Should this decision be made?

A:     ( All figure is in Million)     Initial Cost of Device 200     Savings in Cost    Y...

Q: Simon intends to start his own business selling specialist wines. Some of his sales will be for cash...

A: A cash budget is a financial analytic tool that forecasts the inflow and outflow of cash in the futu...

Q: On November 1, Duane paid $12,000 in advance for a year's rent. The November 30 adjusting entry for ...

A: Payment made in advance for rent is known as prepaid rent. It means expenses needs to be incurred in...

Q: Short-term notes payable: O Can replace an account payable O Can be issued in return for money borro...

A: Short-term notes payable are considered a negotiable instrument. In this one-party agree to pay a ce...

Q: How much is the Consolidated Shareholder's Equity on December 31, 2022?

A: Solution Consolidated shareholder's Equity Means The total assets of the company and its consolidate...

Q: What are some ways that each branch can perform checks on the powers of other branches?

A: The president of the executive branch can check on the powers of other branches through veto power. ...

Q: A. Calculate the missing amounts in MVP MVP, Inc. Income Statement For the Year Ended December 31, 2...

A: Given,         Particulars Detail  Amount $ cost of good sold   375,000 Direct material (vari...

Q: Holiday Creations, Incorporated, sold 36,000 units, total sales were $144,000, total variable expens...

A:                           In Variable Costing we find contribution margin by deducting per unit vari...

Q: QUESTION 5 Duncan Corporation uses two aging categories to estimate uncollectible accounts. Accounts...

A: Given, Allowances for young account = 87,400 Allowances for old account = 12000 Uncollectable rate f...

Q: Explain in detail receivable float and the ways to avoid receivable float loss. Provide a hypothetic...

A: Float refers to the time gap in the receivables management.

Q: What is the role of accountant in setting the price of the goods or services?

A: Price of product shows the amount of product that the seller is willing to offer to the buyer.

Q: A $650000 bond was retired at 102 when the carrying value of the bond was $677000. The entry to reco...

A: Bonds are issued by the company for raising finance. It can be issued at a discount or at a premium.

Q: ancial report

A: Financial reporting refers to the concept of evaluating and formulating all the documents of the com...

Q: Suppose the first installment is to be made on December 31, 2021 instead, can Jackie declare his inc...

A: Installment sales is the sales which the company has made and as per terms of the sale that the paym...

Q: On January 1, 2022, Lucas Company acquired 85% of outstanding shares of Luna Corp. The consideration...

A: Solution Non controlling interest is an ownership position wherein a shareholder owns less than 50% ...

Q: Wolford Department Store is located in midtown Metropolis. During the past several years, net income...

A: Preparation of Income statement :- Particulars Amount Amount Sales revenue 1,157,120   Less: ...

Q: Need asap please and thank you.  Cullumber Company provides you with the following balance sheet inf...

A: Lets understand the basics. Working capital means a capital which is required to fulfil the day to d...

Q: Yorkville sells a haircutter at $65 and each unit has variable cost of $25. Yorkville's fixed manufa...

A: Calculation of the Incremental net income:- Incremental net income = Incremental Revenue - Increment...

Q: The following data are talen from the recurds of Pagong Delivery Services for the year 201 Cash rece...

A: A cash flow financial statement that summarizes all cash inflows received by a company from both ong...

Q: R. Red formed a corporation with an authorization of 20,000 shares of $50 par, 6% non-cumulative pre...

A: Hi student Since there are multiple questions, we will answer only first question. 

Q: Tackett Company sells a single product for $75 each. the variable costs are $45 each. Total fixed co...

A: Unit contribution margin = selling price per unit - variable cost per unit

Q: Business ratio analysis of financial statements over several years is generally helpful for the foll...

A: Ratio analysis represents the comparison of various financial items of the company. It indicates pro...

Q: 7.  new Sage Industries and Pronghorn Inc. enter into an agreement that requires Pronghorn Inc. to ...

A: Lease agreement :-  Lease agreement is a legal agreement where the lessor gives the right of his/her...

Q: Blossom Company sells merchandise on account for $3300 to Morton Company with credit terms of 2/7, n...

A: Journal entries are the basic method for recording financial transactions in the books of accounts. ...

Q: Use the following information for the next 2 items: 2022 Formula One World Championship pre-season t...

A: Solution Goodwill is an intangible asset that accounts for the excess purchase price of another comp...

Q: You and Jackie are arguing whether tax laws can be retroactive in its application. Jackie noted that...

A: In the context of taxation, retrospective taxation refers to the implementation of a current law ame...

Q: What is the total capital required for both off- and on-balance-sheet assets?

A: On-balance sheet items are those which are represented as a part of the company's financial statemen...

Q: Which of the following is an advantage of the periodic inventory system?A. frequent physical invento...

A: When a physical inventory count is performed, a periodic inventory system just updates the ending in...

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.