On December 31, 2012, Delchamps Group reported a balance in Restructuring Provisions of 50.9 million, of which
Question:
On December 31, 2012, Delchamps Group reported a balance in Restructuring Provisions of €50.9 million, of which €12.5 million was expected to be paid in 2013, with the remainder to be settled during 2014–2015. The balance in this account at the start of the year was €84.0 million. During 2012, assume that Delchamps accrued restructuring charges of €14.2 million, and reversed €7.3 million of previous charges.
a. Prepare all journal entries Delchamps made during 2012 related to its restructuring activities.
b. How will Delchamps report its Restructuring Provision on its balance sheet for the year ended December 31, 2012?
c. What is the effect of Delchamps’s 2012 restructuring activities on its income statement?
How are these activities displayed on the statement of cash flows? Ignore tax effects.
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
a Journal entries for 2012 Restructuring Expense 142 Restructuring Provision 142 To ...View the full answer
Financial Accounting An Introduction to Concepts, Methods and Uses
ISBN: 978-1133591023
14th edition
Authors: Roman L. Weil, Katherine Schipper, Jennifer Francis
