Edge Co., a toy manufacturer, is in the process of preparing its financial statements for the year ended December 31, 2013. Edge expects to issue its 2013 financial statements on March 1, 2014.

Given in question are various information that has not been reflected in the financial statements. For each item:

1) Determine if an adjustment is required and select the appropriate amount, if any, from the options provided:

a) No adjustment Required b) $150,000 c) $100,000

2) Enter either Yes or No if additional disclosure is required, either on the face of the financial statements or in the notes to the financial statements.

Question - "On December 31, 2013, Edge s board of directors voted to discontinue the operations of this computer games division was sell all the assets of the division. The division was sold on February15, 2014. On December 31, 2013, Edge estimated that losses from operations, net of tax, for the period January 1, 2014, through February 15, 2014, would be $400,000 and that the gain from the sale of the division s assets, net of tax, would be $250,000. These estimates were materially correct."

"$150,000; Yes"

"$100,000; Yes"

No adjustment is required; No

No adjustment is required; Yes