The end of the reporting period of Feline Ltd is 30 June 2018. Assuming the financial...
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The end of the reporting period of Feline Ltd is 30 June 2018. Assuming the financial statements are authorised on 15 September 2018, determine and explain whether the following events require adjustment to the financial statements or disclosure. (a) On 15 July 2018, the company settled and paid a personal injury claim from a former employee, George. George fell off a broken ladder and broke his arm in November 2017. After negotiation, the damaged amounted to $15 000. (b) On 31 July 2018, a building owned by the company was severely damaged by storm resulting in damages of $150 000. The storm damage was not covered by insurance. (c) On 15 August 2018, a major customer of Feline Ltd becomes insolvent. Feline Ltd has an amount of $30 000 accounts receivables with this customer as at 30 June 2018. (d) On 30 August 2018, the company declared dividend of $0.50 for each ordinary share. The dividend is paid on 5 September 2018. The end of the reporting period of Feline Ltd is 30 June 2018. Assuming the financial statements are authorised on 15 September 2018, determine and explain whether the following events require adjustment to the financial statements or disclosure. (a) On 15 July 2018, the company settled and paid a personal injury claim from a former employee, George. George fell off a broken ladder and broke his arm in November 2017. After negotiation, the damaged amounted to $15 000. (b) On 31 July 2018, a building owned by the company was severely damaged by storm resulting in damages of $150 000. The storm damage was not covered by insurance. (c) On 15 August 2018, a major customer of Feline Ltd becomes insolvent. Feline Ltd has an amount of $30 000 accounts receivables with this customer as at 30 June 2018. (d) On 30 August 2018, the company declared dividend of $0.50 for each ordinary share. The dividend is paid on 5 September 2018.
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a This event requires an adjustment to the financial statements The l... View the full answer
Related Book For
Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett
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