days after the end of reporting period. On January 15, receivable of P400,000 from a customer...

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days after the end of reporting period. On January 15, receivable of P400,000 from a customer that is due 60 31, 2020, these investments were recorded at the market 2021, a receiver was appointed for the said customer. authorized for 1. On December 31, 2020, Norway Company had a Norway Company reported that the year-end is December The receiver informed Norway that the P400,000 would 4, 2020 and the financial statements are issue on March 15, 2021. be paid in full by June 30, 2021. 2. Norway Company measured share investments held f trading at fair value through profit or loss. On Decemb value of P5,000,000. During the period up to February 15 2021, there was a steady decline in' the market value of all the shares in the portfolio, and on February 15, 2021 the market value had fallen to P2,000,000. 3. Norway Company had reported a contingent liability on December 31, 2020 related to a court case in which Norway Company was the defendant. The case was not heard until the first week of February 2021. On March 1, 2021, the judge handed down a decision against Norway Company. The judge determined that Norway Company was liable to pay damages and costs totaling P3,000,000. 4. On December 31, 2020, Norway Company had an account receivable from a large customer in the amount of P3,500,000. On January 31, 2021, Norway Company was advised by the liquidator of the said customer that the customer was insolvent and would be unable to repay the full amount owed to Norway Company. The liquidator advised Norway Company in writing that only 10% of the account receivable will be paid on April 30, 2021. Required: Prepare adjusting entries on December 31, 2020 to reflece the events after reporting period. days after the end of reporting period. On January 15, receivable of P400,000 from a customer that is due 60 31, 2020, these investments were recorded at the market 2021, a receiver was appointed for the said customer. authorized for 1. On December 31, 2020, Norway Company had a Norway Company reported that the year-end is December The receiver informed Norway that the P400,000 would 4, 2020 and the financial statements are issue on March 15, 2021. be paid in full by June 30, 2021. 2. Norway Company measured share investments held f trading at fair value through profit or loss. On Decemb value of P5,000,000. During the period up to February 15 2021, there was a steady decline in' the market value of all the shares in the portfolio, and on February 15, 2021 the market value had fallen to P2,000,000. 3. Norway Company had reported a contingent liability on December 31, 2020 related to a court case in which Norway Company was the defendant. The case was not heard until the first week of February 2021. On March 1, 2021, the judge handed down a decision against Norway Company. The judge determined that Norway Company was liable to pay damages and costs totaling P3,000,000. 4. On December 31, 2020, Norway Company had an account receivable from a large customer in the amount of P3,500,000. On January 31, 2021, Norway Company was advised by the liquidator of the said customer that the customer was insolvent and would be unable to repay the full amount owed to Norway Company. The liquidator advised Norway Company in writing that only 10% of the account receivable will be paid on April 30, 2021. Required: Prepare adjusting entries on December 31, 2020 to reflece the events after reporting period.

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The contingencies and event occurring after balance sheet date and before approval of fi... View the full answer