For each of the following independent events, describe the appropriate accounting treatment. In each scenario, assume...

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For each of the following independent events, describe the appropriate accounting treatment. In each scenario, assume that the year-end financial statements have not yet been issued. Specifically state whether the event should be reported in the financial statements and/or only in the notes. Briefly explain your answer. a) A company's year-end is December 31, 2020. On February 6t, 2021, the company applied for a new bank of $1,000,000, substantially increase their amount of debt. b) On January 4th, 2020, just prior to the 2019 year-end financial statements being issued, a legal dispute was settled by the courts. It was determined that the company owed $50,000 because of a lawsuit filed in 2019. The company had not recorded a provision (liability) in 2019 as at that time they had determined that the lawsuit would not be successful. For each of the following independent events, describe the appropriate accounting treatment. In each scenario, assume that the year-end financial statements have not yet been issued. Specifically state whether the event should be reported in the financial statements and/or only in the notes. Briefly explain your answer. a) A company's year-end is December 31, 2020. On February 6t, 2021, the company applied for a new bank of $1,000,000, substantially increase their amount of debt. b) On January 4th, 2020, just prior to the 2019 year-end financial statements being issued, a legal dispute was settled by the courts. It was determined that the company owed $50,000 because of a lawsuit filed in 2019. The company had not recorded a provision (liability) in 2019 as at that time they had determined that the lawsuit would not be successful.

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a The event need not be reported in the financial statements But a note can be given in ... View the full answer