The notes to the financial statements of Bayer Group, a German pharmaceutical company, report a balance of

Question:

The notes to the financial statements of Bayer Group, a German pharmaceutical company, report a balance of €154 million for Restructuring Provisions on December 31; for the prior year, the ending balance in this liability account was €196 million. During the current year, Bayer reports Utilizations (that is, expenditures)of €134 million, and Reversals of €$31 million. Other effects (such as exchange rate differences and changes in the scope of consolidation) reduced the balance in this account by €5 million during the current year.

a. What journal entry did Bayer make in the current year to record Utilizations and Reversals?

b. What journal entry did Bayer make in the current year to record new additions to the Restructuring Provision account?

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... Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...