Edge Co.a toy manufacturer, is in the process of preparingits financial statements for the year ended December31 Year 8. Edge expects to issue its Year financialstatements on March 1. Year 9. Items 1 through 6 representpotential contingencies that have not been reflected in thefinancial statements. For each item, the following tworesponses are required.a Input the appropriate adjustment amount, if anylf noadjustment is necessary please indicate this by respondingno adjustment necessary.b. Indicate whether additional disclosure is required, eitheron the face of the financial statements or in the notes to thefinancial statements. Choose yes or no for your response.Each choice may be used once, more than once, or not atallstatement:1. Edge owns a small warehouse located on the banks of ariver in which it stores inventory worth approximately $500,000 Edge is not insured against flood losses. The riverlast overflowed its banks 20 years ago.Amount of adjustment??Additional disclosure required??2. In May of Year 8 an explosion occurred at Edge's toyplant, causing damage to area properties. By the end ofthe year, no claims had been asserted against Edge.However, Edge believes it is probable that a lawsuit will befiled next year regarding its responsibility for the damageEdge's legal counsel concluded that if the lawsuit is filednext year $100,000 to $ 500,000 will be a reasonableestimate of the range of damages , and $ 150,000 is abetter estimate than any other amount in this rangeAmount of adjustment??Additional disclosure required??3. Edge offers an unconditional warranty againstmanufacturing defects on its toys. Based on pastexperience Edge estimates it warranty expense to be 1% ofsales Sales during Year 8 were $10 millionAmount of adjustment??Additional disclosure required??4. On October 30Year 8a safety hazard related to one ofEdge's toy products was discovered. It is probable thatEdge will be liable for an amount in the range of $ 100,000to $500,000Amount of adjustment??Additional disclosure required??5. On November 22 Year 8, Edge initiated a lawsuit seeking$250,000 in damages from patent infringementAmount of adjustment??Additional disclosure required??6. On December 17Year 8, a former employee filed alawsuit seeking $100,000 for unlawful dismissal. Edge'sattorneys believe the suit is without merit . No court datehas been set.Amount of adjustment??Additional disclosure required??

Edge Co., a toy manufacturer, is in the process of preparing its financial statements for the year ended December 31, Year 8. Edge expects to issue its Year 8 financial statements on March 1, Year 9. Items 1 through 6 represent potential contingencies that have not been reflected in the financial statements. For each item, the following two responses are required. a. Input the appropriate adjustment amount, if any. If no adjustment is necessary, please indicate this by responding no adjustment necessary. b. Indicate whether additional disclosure is required, either on the face of the financial statements or in the notes to the financial statements. Choose yes or no for your response. Each choice may be used once, more than once, or not at all. Additional Amount of Statement disclosure adjustment required 1. Edge owns a small warehouse located on the banks of a river in which it stores inventory worth approximately $500,000. Edge is not insured against flood losses. The river last overflowed its banks 20 years ago. 2. In May of Year 8, an explosion occurred at Edge's toy plant, causing damage to area properties. By the end of the year, no claims had been asserted against Edge. However, Edge believes it is probable that a lawsuit will beSyllabus 3. Edge offers an Announcements unconditional warranty against Modules manufacturing Grades defects on its toys. Based on Chat past experience, Edge estimates it People warranty Collaborations expense to be 1% of sales. Google Drive Sales during Year SmarterID 8 were $10 million. GSU Proctoring 4. On October Echo360 30, Year 8, a safety hazard BigBlueButton related to one of Edge's toy products was discovered. It is probable that Edge will be liable for an amount in the range of $100,000 to $500,000. 5. On November 22, Year 8, Edge initiated a lawsuit seeking $250,000 in damages from patent infringement. 6. On December 17, Year 8, a former employee filed a lawsuit seeking $100,000 for unlawful dismissal. Edge's attorneys believe the suit is without merit. No court date has been set