NettetThe company would record this warranty liability of $120 ($1,200 × 10%) to Warranty Liability and Warranty Expense accounts. When the warranty is honored, this would … Nettet4. apr. 2024 · 1. answer below ». P11-27A Journalizing liability transactions The following transactions of Plymouth Pharmacies occurred during 2024 and 2024: 2024 Purchased computer equipment at a cost of $12,000, signing a six-month, 9% note payable for that amount. Recorded the week's sales of $63,000, three-fourths on credit …
How are the journal entries and legal entries recorded for …
Nettet12. jul. 2024 · Is contingent liability an actual liability? Yes. Although contingent liabilities are necessarily estimates, they only exist where it is probable that some amount of … Nettet14. okt. 2024 · The adjusted basis of the truck is $3,500 ($24,000 cost minus $20,500 depreciated). Therefore, you have a gain of $1,500 on the sale ($5,000 received minus $3,500 basis). Make the following adjusting entry to take the truck off your books and reflect the correct amount of gain (or loss) on the sale: Debit. Credit. chevy crossover suv models
Contingent Liability: What Is It, and What Are Some Examples?
Nettetbecame less important in determining auditor liability after 1982, when the argument that auditors should insure investors against losses first ap-peared in the courts.1 Our tests … The company can make contingent liability journal entry by debiting the expense account and crediting the contingent liability account. This journal entry is to show that when there is a probability of future cost which can be reasonably estimated, the company needs to recognize and record it as an expense … Se mer Contingent liability is a potential obligation that may or may not become an actual liability in the future. It is a liability of uncertain timing and amount. In this case, the company needs to account for contingent liability by … Se mer For example, the company ABC Ltd. has an outstanding lawsuit which is likely that it will lose with the amount that can be reasonably estimated … Se mer Nettet8. jan. 2024 · 1. Read the documents from the company’s attorney. Highlight the estimated amount of the loss. 2. Write a journal entry to record the estimated loss. "Debit Lawsuit … good vinegar cleaning solution