On December 4, 2010, Dan Johnson, delivery truck driver for Farmers Products, Inc., ran a stop sign

Question:

On December 4, 2010, Dan Johnson, delivery truck driver for Farmers Products, Inc., ran a stop sign and collided with another vehicle. On January 8, 2011 the driver of the other vehicle filed suit against Farmers Products for damages to the vehicle. Estimated damages to this vehicle were $6,500. The dairy issued its 2010 on March 3, 2011.

Required
1. Prepare the disclosures and/or journal entries Farmers Products should make in preparing its December 31, 2010 If Farmers Products used IFRS, how would it refer to contingencies?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...