For each of the following independent situations, indicate whether a provision should be recorded or a...
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For each of the following independent situations, indicate whether a provision should be recorded or a contingent liability disclosed for a company using IFRS. a. b. C. d. e. A lawsuit against a company that management believes the company will settle in the future with a payment that it can estimate. A lawsuit against a company that management believes the company will settle in the future but is unable to estimate. A nuisance lawsuit against the company, which the company does not anticipate losing. An estimate of warranty costs pertaining to products sold in the current year that a company estimates it will pay in the future. An estimate of cleanup costs that a company will spend at a mine site in order to comply with new provincial regulations when abandoning that site next year. The company has been operating the mine for the past 20 years. > > > In providing accounting services to small businesses, you encounter the following situations. 1. 2. 3. Coronado Corporation rings up cash sales and sales taxes separately on its cash register. On April 10, the register totals are pre-tax sales of sales $5,300 plus GST of $265 and PST of $424. Lisa Corporation receives its annual property tax bill in the amount of $9,600 on May 31. (1) During the month of March, Whispering Winds Corporation's employees earned gross salaries of $61,300. Withholdings deducted from employee earnings related to these salaries were $2,980 for CPP, $977 for El, $7,320 for income taxes. (ii) Whispering Winds's employer portions were $2,980 for CPP and $1,368 for El for the month. Prepare the journal entries to record the above transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.) For each of the following independent situations, indicate whether a provision should be recorded or a contingent liability disclosed for a company using IFRS. a. b. C. d. e. A lawsuit against a company that management believes the company will settle in the future with a payment that it can estimate. A lawsuit against a company that management believes the company will settle in the future but is unable to estimate. A nuisance lawsuit against the company, which the company does not anticipate losing. An estimate of warranty costs pertaining to products sold in the current year that a company estimates it will pay in the future. An estimate of cleanup costs that a company will spend at a mine site in order to comply with new provincial regulations when abandoning that site next year. The company has been operating the mine for the past 20 years. > > > In providing accounting services to small businesses, you encounter the following situations. 1. 2. 3. Coronado Corporation rings up cash sales and sales taxes separately on its cash register. On April 10, the register totals are pre-tax sales of sales $5,300 plus GST of $265 and PST of $424. Lisa Corporation receives its annual property tax bill in the amount of $9,600 on May 31. (1) During the month of March, Whispering Winds Corporation's employees earned gross salaries of $61,300. Withholdings deducted from employee earnings related to these salaries were $2,980 for CPP, $977 for El, $7,320 for income taxes. (ii) Whispering Winds's employer portions were $2,980 for CPP and $1,368 for El for the month. Prepare the journal entries to record the above transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.)
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Under IFRS International Financial Reporting Standards provisions and contingent liabilities are treated differently Heres how each of the situations ... View the full answer
Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118644942
6th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
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