Question: Morlan SA is preparing its December 31, 2019, financial statements. Two events that occurred between December 31, 2019, and March 10, 2020, when the statements

Morlan SA is preparing its December 31, 2019, financial statements. Two events that occurred between December 31, 2019, and March 10, 2020, when the statements were authorized for issue, are described below.
1. A liability, estimated at €160,000 at December 31, 2019, was settled on February 26, 2020, at €170,000.
2. A flood loss of €80,000 occurred on March 1, 2020.
What effect do these subsequent events have on 2019 net income?

Step by Step Solution

★★★★★

3.36 Rating (180 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Net income will decrease by 10000 160000 170000 as a result of the adjustment of the liability The ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

1353-B-M-A-I(4765).docx

120 KBs Word File

Students Have Also Explored These Related Managerial Accounting Questions!

Morlan Corporation is preparing its December 31, 2010, financial statements. Two events that occurred between December 31, 2010, and March 10, 2011, when the statements were issued, are described...

Ramirez Inc., a publishing company, is preparing its December 31, 2017 financial statements and must determine the proper accounting treatment for the following situations. Ramirez has retained your...

Pascal Corporation is preparing its December 31, 2019, statement of financial position. The following items may be reported as either a current or non-current liability. 1. On December 15, 2019,...

Morlan SA is preparing its December 31, 2022, financial statements. Two events that occurred between December 31, 2022, and March 10, 2023, when the statements were authorized for issue, are...

Morlan Corporation is preparing its December 31, 2020, financial statements. Two events that occurred between December 31, 2020, and March 10, 2021, when the statements were authorized for issue, are...

Morlan Corporation is preparing its December 31, 2014, financial statements. Two events that occurred between December 31, 2014, and March 10, 2015, when the statements were authorized for issue, are...

Morlan Corporation is preparing its December 31, 2015, financial statements. Two events that occurred between December 31, 2015, and March 10, 2016, when the statements were authorized for issue, are...

Morlan Corporation is preparing its December 31, 2020, financial statements. Two events that occurred between December 31, 2020, and March 10, 2021, when the statements were issued, are described...

Brief Exercise 24-3 (Essay) Morlan Corporation is preparing its December 31, 2014, financial statements. Two events that occurred between December 31, 2014, and March 10, 2015, when the statements...

BE24-3 (L02) Morlan Corporation is preparing its December 31, 2017, financial statements. Two events that occurred between December 31, 2017, and March 10, 2018, when the statements were issued, are...

"Want to win a million dollars? Here's how.... One winner, chosen at random from all entries, will win a $1,000,000 annuity." That was the statement announcing a contest on the World Wide Web. The...

Martin retired in May 2020. His pension is $1,000 per month from a qualified retirement plan to which he contributed $42,000, and to which his employer contributed $12,000. Martin was 67 when the...

CHALLENGE Nonstandard dice. Nonstandard dice can produce interesting distributions of outcomes. You have two balanced, six-sided dice. One is a standard die, with faces having 1, 2, 3, 4, 5, and 6...

8 .2. For the Burger Palace example, perform a complete analysis of efficiency improvment alternatives for unit S 5 , including determination of a composite reference unit.

The following information is available for Roginski Corporation for 2017. 1. CCA reported on the 2017 tax return exceeded depreciation reported on the income statement by $160,000. This difference is...

Mazur Corp. follows IFRS and began operations in 2017 and reported accounting income of $275,000 for the year. Mazur's CCA exceeded its book depreciation by $40,000. Mazur's tax rate for 2017 and...

Using the information from BE18-3, calculate the effective rate of income tax for Nilson Inc. for 2017. Also make a reconciliation from the statutory rate to the effective rate, using percentages. In...

1) All of the following industries have traditionally supported high leverage levels EXCEPT: a. Cable b. Gaming c. Industrials d. Technology 2) If a PE firm contributes $501.469 million of equity to...

A U.S. Treasury strip that will pay $1,000 in 15 years is selling today for $417.27. What interest rate does the bond offer? Note: Do not round intermediate calculations. Enter your answer as a whole...

Question 3 of 6 Katie set up a fund that would pay his family $4,500 at the beginning of every month, in perpetuity. What was the size of the investment in the fund if it was earning 3.00% compounded...