Nickolas Imports recorded a restructuring charge of $21.6 million during fiscal 2014 related entirely to the closing of its California-based operations in San Diego and in Tijuana, Mexico. The company’s financial statement footnotes indicated that expected employee separation payments amounted to $16.8 million and that fixed asset write-downs accounted for the remainder. Nickolas had never before incurred restructuring charges. At the end of the year, the company’s balance sheet included a restructuring accrual of $3,600,000. Required: Use the financial statements effect templates to record 

1. the restructuring charges, and 

2. the cash settlements.

Answer rating: 100% (QA)

Cash Paid for Restructuring ... View the full answer