Subsequent Events [7 marks] Space X Co. has a December 31, 2023 fiscal year-end date. The...

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Subsequent Events [7 marks] Space X Co. has a December 31, 2023 fiscal year-end date. The financial statements were Issued on March 15, 2024, Required: Time left 1:50:54 For each item noted below, Indicate the appropriate treatment for the year ending December 31, 2023, by clicking and dragging either A, D, or N Into the blank box, Choices A, D, and N are found at the end of the question. The letters stand for A-Adjust the financial statements for 2023 and disclose the event in a note. D-Disclose the event only in a note to the 2023 financial statements without making an adjustment entry. N- Neither an adjustment nor note disclosure Is needed for 2023. The following Information is available: 1. The company's employees agreed to a new contract on March 1, 2024 which will result in a 10% wage increase for 2024. 2. A large manufacturing building was destroyed by a flood on February 20, 2024. 3. Star Co. owed Space X Co. $80,000 on December 31, 2023. Star Co. declared bankruptcy on January 25, 2024 and it is unlikely Space X Co. will recover any of the amount owed to it. Space X Co. had expected In December to receive the full amount. 4. A lawsuit filed on October 15, 2023, against Space X Co. was settled out of court on April 20, 2024 for $300,000. No entry was made at December 31, 2023 for a possible loss as the company's lawyer determined a loss was unlikely. 5. A competitor announced on February 1, 2024 they will set up operations in Canada to compete with Space X Co 6. Space X Co. issued $500,000,000 in common shares on February 14, 2024. 7. On March 3, 2024 the company was ordered by the Alberta government to clean up an oil spill that occurred on January 11, 2024. Expected costs will be several million dollars ADN Subsequent Events [7 marks] Space X Co. has a December 31, 2023 fiscal year-end date. The financial statements were Issued on March 15, 2024, Required: Time left 1:50:54 For each item noted below, Indicate the appropriate treatment for the year ending December 31, 2023, by clicking and dragging either A, D, or N Into the blank box, Choices A, D, and N are found at the end of the question. The letters stand for A-Adjust the financial statements for 2023 and disclose the event in a note. D-Disclose the event only in a note to the 2023 financial statements without making an adjustment entry. N- Neither an adjustment nor note disclosure Is needed for 2023. The following Information is available: 1. The company's employees agreed to a new contract on March 1, 2024 which will result in a 10% wage increase for 2024. 2. A large manufacturing building was destroyed by a flood on February 20, 2024. 3. Star Co. owed Space X Co. $80,000 on December 31, 2023. Star Co. declared bankruptcy on January 25, 2024 and it is unlikely Space X Co. will recover any of the amount owed to it. Space X Co. had expected In December to receive the full amount. 4. A lawsuit filed on October 15, 2023, against Space X Co. was settled out of court on April 20, 2024 for $300,000. No entry was made at December 31, 2023 for a possible loss as the company's lawyer determined a loss was unlikely. 5. A competitor announced on February 1, 2024 they will set up operations in Canada to compete with Space X Co 6. Space X Co. issued $500,000,000 in common shares on February 14, 2024. 7. On March 3, 2024 the company was ordered by the Alberta government to clean up an oil spill that occurred on January 11, 2024. Expected costs will be several million dollars ADN

Answer rating: 100% (QA)

Based on the information provided here is the appropriate treatment for each event The companys employees agreed to a new contract on March 1 2024 whi... View the full answer