After years of experience, Dilcort Company reasonably estimated that a loss from a pending lawsuit was probable at September 30 of the current year. Dilcort Company estimated that the loss would amount to $57,500. Prepare the journal entry, if any, to record the lawsuit at its September 30 year-end.
Answer to relevant QuestionsOn January 1, Tolson Company purchased a building by paying $85,000. The building has an estimated life of 40 years and an estimated residual value of $5,000. Prepare journal entries to record the purchase and the related ...Vickelly Company uses cash-basis accounting. At the end of the current year, Vickelly’s checkbook shows cash receipts from customers of $112,000 and cash payments for operating expenses of $48,000 for the year. At the end ...On December 31, 2010, Braino Tech., Inc., learned that its competitor had introduced a product making use of an accessory over which Braino Tech. has exclusive patent rights. Braino Tech. planned to file suit and in all ...Crabtree Company's pension expense for the current year is $200,000 and the company funds $185,000. Prepare the journal entry Crabtree Company will make on December 31.In 2010, Lalli Corporation incurred R&D costs as follows:Materials and equipment ......... $100,000Personnel ............... 100,000Indirect costs .............. 50,000 $250,000These costs relate to a product ...
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