Distinguish between a legal and an equitable or constructive liability. Give an example of each.
Answer to relevant QuestionsHow do the matching principle and conservatism enter into the accounting for contingencies? Rescue Sequences LLC purchased inventory' by issuing a $30,000, 10%, 60-day note on October 1. Prepare the journal entries for Rescue Sequences to record the purchase and payment assuming it uses a perpetual inventory' ...Ames Company is located in a city and county that issue property tax statements in May of each year. The fiscal year for the two local governmental units is May 1 to April 30. Property taxes of $48,000 are assessed against ...James Kimberley, president of National Motors, receives a bonus of 10% of National's profits above $1,500,000, before the bonus and the corporation's income taxes are deducted. National's effective income tax rate is 30%. ...Hemingway Company purchases equipment by issuing a 7- year, $ 350,000 non- interest- bearing note, when the market rate for this type of note is 10%. Hemingway will pay off the note with equal payments to be made at the end ...
Post your question