Question
2. The following financial information is from Cook Company: Accounts Payable$55,000 Land$90,000 Inventory$10,500 Accounts Receivable$7,500 Equipment$8,000 Deferred Revenue$58,500 Short-Term Investments$20,000 Notes Receivable (due in 8
2. The following financial information is from Cook Company:
Accounts Payable$55,000
Land$90,000
Inventory$10,500
Accounts Receivable$7,500
Equipment$8,000
Deferred Revenue$58,500
Short-Term Investments$20,000
Notes Receivable (due in 8 months)$45,500
Interest Payable$2,000
Patents$75,000
What is the total amount of long-term assets assuming the accounts above reflect normal activity?
3. Away Travel filed suit against West Coast Travel seeking damages for copyright violations. West Coast Travel's legal counsel believes it is reasonably possible that West Coast Travel will settle the lawsuit for an estimated amount in the range of $100,000 to $200,000, with all amounts in the range considered equally likely.
How should West Coast Travel report this litigation?
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Sawyer's Internal Auditing The Practice Of Modern Internal Auditing
Authors: Lawrence Sawyer, Mortimer Dittenhofer, James Scheiner
5th Edition
0894131788, 978-0894131783
