Question
At December 31, 2020, Swifty Inc. is involved in a lawsuit. Under existing standards in IAS 37, prepare the December 31 entry assuming it is
At December 31, 2020, Swifty Inc. is involved in a lawsuit.
Under existing standards in IAS 37, prepare the December 31 entry assuming it is probable (and very likely) that Swifty will be liable for $740,000 as a result of this suit.(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.)
Date
Account Titles and Explanation
Debit
Credit
Dec. 31, 2020
enter an account title for the journal entry on December 31
enter a debit amount
enter a credit amount
enter an account title for the journal entry on December 31
enter a debit amount
enter a credit amount
SHOW LIST OF ACCOUNTS
Under existing standards in IAS 37, prepare the December 31 entry, if any, assuming it is probable (although not likely) that Swifty will be liable for a payment as a result of this suit.(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.)
Date
Account Titles and Explanation
Debit
Credit
Dec. 31, 2020
enter an account title for the journal entry on December 31
enter a debit amount
enter a credit amount
enter an account title for the journal entry on December 31
enter a debit amount
enter a credit amount
SHOW LIST OF ACCOUNTS
Under existing standards in IAS 37, prepare the December 31 entry assuming it is not probable that Swifty will be liable for $740,000 as a result of this suit.(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.)
Date
Account Titles and Explanation
Debit
Credit
Dec. 31, 2020
enter an account title for the journal entry on December 31
enter a debit amount
enter a credit amount
enter an account title for the journal entry on December 31
enter a debit amount
enter a credit amount
SHOW LIST OF ACCOUNTS
Prepare the December 31 entry assuming it is probable (and very likely) that Swifty will be liable for $740,000 as a result of this suit. Assume that Swifty follows ASPE.(Credit account titles are automatically indented when the amount is enteredDo not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Date
Account Titles and Explanation
Debit
Credit
Dec. 31, 2020
enter an account title for the journal entry on December 31
enter a debit amount
enter a credit amount
enter an account title for the journal entry on December 31
enter a debit amount
enter a credit amount
SHOW LIST OF ACCOUNTS
Prepare the December 31 entry, if any, assuming it is probable (although not likely) that Swifty will be liable for $740,000 as a result of this suit. Assume that Swifty follows ASPE.(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.)
Date
Account Titles and Explanation
Debit
Credit
Dec. 31, 2020
enter an account title for the journal entry on December 31
enter a debit amount
enter a credit amount
enter an account title for the journal entry on December 31
enter a debit amount
enter a credit amount
SHOW LIST OF ACCOUNTS
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Financial Accounting
Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
12th edition
134725980, 9780134726656 , 978-0134725987
