BVC, Inc. may be in a legal fight this coming year. Facts of a certain matter indicate they may have a case against BSN, Inc. for patent infringement. If they win, they could receive $111,000,000. It's a probability. Record the appropriate journal entry, if required, for BVC prior to any actual receipt of an award. Note: Make sure to format your entries properly, whether you are using a table or plain text entry.
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- ABC at the year end has the following outside lawsuits: A suit that is probable of loss with an estimated loss of $50,000. A suit that is probable of winning with an estimated gain of $20,000 A suit that is remote of losing with an estimated loss of $10,000. What amount of Contingent liability would ABC report at year end? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a $30,000 b $40,000 c $50,000 d $60,000Blue Incorotation has a patent that will expire at the end of 2025. They spent $100,000 to successfully prosecute an infringement suit on July 1, 2018. The carrying value of this patent before the litigation is $300,000. Write journal entries to record for these activities.Ali is the manager of a well reputed organization. He is assigned to auction some assets of the firm. Instead of organizing an auction Ali compiles a list of items and puts an advertisement on the paper stating that anyone who is willing to purchase the said articles for Rs. 1 Lac can contact him directly by 15th April 2021 through email only. Ahmed saw the advertisement and emailed Ali on 12th April asking for pictures of the items or if it was possible for him to view the items. Ali provided the pictures. Ahmed then emailed Ali that he is willing to purchase the said articles for Rs. 90 thousand and wrote that if Ali did not reply he will assume that Ali has accepted the offer. On 14th April at 3 pm, Saad emailed Ali and said the following, “I will purchase the listed articles.” On 14th April at 4:30 pm, Khan called Ali and brokered a deal to purchase the articles. Answer the following questions. Ali sold the articles to Khan. Is it a valid sale
- (b) In 2023, Martinez receives the raw materials and pays the required $1,700,000. The raw materials now have a market value of $1,360,000. Prepare the entry to record the purchase. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.) Date Account Titles and Explanation Dec. 31, 2023 Debit CreditYou have recently been hired as an Accountant for Arizona Corp., a manufacturer of equipment. Arizona follows ASPE but is considering becoming a public company in the next year. Arizona provides a 2 year warranty on its equipment sales and you are examining whether to treat the warranty as a Service-type or Assurance-type warranty for accounting purposes. Revenue would be realized on a straight-line basis if the Service-type approach is followed. Your research has uncovered the following data for 2020: Sales 50 units at $7,500 each (for simplicity assume all are cash sales and occur on January 1) Estimated warranty costs $700 per unit Actual 2020 costs incurred $25,000 Fair value of warranty $800 per unit a) For both the Service-type and Assurance-type approaches, prepare all necessary journal entries for 2020 b) Which approach is preferable? Support your conclusion with applicable account balancesAuthors Academic Press faces three potential contingency situations, described below. Authors’ fiscal year ends December 31, 2021.Required:Determine the appropriate means of reporting each situation for the year ended December 31, 2021, and record any necessary entries. Explain your reasoning.1. In August 2021, a worker was injured in an accident, partially as a result of his own negligence. The worker has sued the company for $1.2 million. Legal counsel believes it is reasonably possible that the outcome of the suit will be unfavorable, and that the settlement would cost the company from $300,000 to $600,000.2. A suit for breach of contract seeking damages of $3 million was filed by an author on October 4, 2021. Legal counsel believes an unfavorable outcome is probable. A reasonable estimate of the award to the plaintiff is between $1.5 million and $2.25 million. No amount within this range is a better estimate of potential damages than any other amount.3. Authors is the plaintiff in…
- You are the accountant for a division of a company that is constructing a building for its own use. It is January 2020, and you are working on closing the books for 2019. The CEO of the division stops by your office and says, “I have some questions about our building. Although we started construction at the beginning of June this year, we started planning it at the beginning of the previous year. I believe that we can capitalize interest since then. Check to see if we did capitalize some in 2018. If not, we can take it out of this year’s expense and get a double dose. Also, I want you to add lots of overhead to the cost of the building so we can increase our profit for this year. For example, you spent quite a bit of time on the project. So perhaps we could add 1/12 of your salary to the cost of the building. You get the idea?” When the CEO leaves, you check the files and find a letter to an architect dated January 2, 2018. There are numerous subsequent letters to and from the…In 2025, Culver determined that a competitor's product would make the New Age Piano obsolete and the patent worthless by December 31, 2026. Prepare all journal entries required in 2025 and 2026. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.) Date Account Titles and Explanation Debit CreditGarrett Corporation began operations in 2021. To maintain its accounting records, Garrett entered into a two-year agreement with Accurite Company. The agreement specifies that Garrett will pay $85,000 to Accurite immediately, and in return, Accurite will make its accounting software accessible via the Internet to Garrett and maintain all infrastructure necessary to run the software and store records. At any time, Garrett Corporation can freely remove its records and run the software on its own hardware or that of another accounting services company. In addition to the cost of the agreement, Garrett incurred $15,000 early in the year devising a plan for its accounting software needs, $25,000 for customizing its own computers for integration with Accurite’s software, and $20,000 after the software was implemented to train its employees. Determine the initial amount that Garrett should capitalize related to the software development costs.
- You are assigned as the financial advisor of the would-be entrepreneur James Udderlie. Write a 100-wordreport of the possibilities of James getting a loan for hisnew business.Type your report below (you may attach tables /appendices / calculations as you see fit). Be mindful ofthe word limit. Do not send PDF document formatreport. You may like to consider some template toframe your answer e.g., 5 "C" (condition / collateral /capacity / character/ capital; 4 Ps (Price / Product /Promotion / Place); or SWOT (Strength / Weakness /Opportunity / Threat).Craig decided to start offering assurance-type warranties to increase product sales. He feels this will help increase sales volume and add positive word of mouth for his business. He will also offer service-type warranties on several of the high end products that he sells. After discussing with him the pros and cons, you both agree to record these warranty expenses and liabilities at the end of each quarter. Prepare the journal entries for the following: 1. Craig Design and Landscaping offers 1 year assurance-type warranties on each tree sold over $500. Craig also sells a 3-year service-type warranty for each tree sold over $500. 2. Craig sold $5,000 worth of service-type warranties and received cash during the 3rd quarter of this year. These warranties are effective after the one year assurance-type warranty expires. Record the journal entry for this warranty transaction. 3. You and Craig estimate that 5% of customers will require assurance- type warranty replacement. Sales…Do not copy from bartleby. Otherwisw i will give you dislike When DeSoto Water Works purchased equipment at the end of 2020 at a cost of $64,000, the company debited Buildings and credited Cash $64,000. The error was discovered in 2021. Prepare the journal entry DeSoto will use to correct the error. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record entry to correct error. Note: Enter debits before credits. Event General Journal Debit Credit 1 Record entry Clear entry View general journal