HWK 13 (Ch. 8) Help Sa 4 Required information Exercise 8-12A Analyze and record a contingent liability (LO8-5) The following information applies to the questions displayed below./ Part 1 of 4 Top Sound International designs and sells high-end stereo equipment for auto and home use. Engineers notified management in December 2021 of a circuit flaw in an amplifier that poses a potential fire hazard. Further investigation 31. s that a product recall is probable, estimated to cost the company $2.5 million. The fiscal year ends on December 0.5 points eBook Exercise 8-12A Part 1 1. Should this contingent liability be reported, disclosed in a note only, or neither? Prev 4 567 of 11Next > HWK 13 (Ch. 8) 6 Help 5 Required information Exercise 8-12A Analyze and record a contingent liability (LO8-5) The following information applies to the questions displayed below) Part 2 of 4 Top Sound International designs and sells high-end stereo equipment for auto and home use. Engineers notifled management in December 2021 of a circuit flaw in an amplifier that poses a potential fire hazard. Further investigation indicates that a product recall is probable, estimated to cost the company $2.5 million. The fiscal year ends on December 0.5 31. ekExercise 8-12A Part 2 2. What loss, if any, should Top Sound report in its 2021 income statement? (Enter your answer in dollars, not in millions (ie. 5.5 should be entered as 5,500,000).) HWK 13 (Ch.8) 6 Required information Exercise 8-12A Analyze and record a contingent liability (LO8-5) The following information applies to the questions displayed below Part 3 of 4 Top Sound International designs and sells high-end stereo equipment for auto and home use. Engineers notified management in December 2021 of a circuit flaw in an amplifier that poses a potential fire hazard. Further investigation ndicates that a product recall is probable, estimated to cost the company $2.5 million. The fiscal year ends on December 31. 0.5 Bok Exercise 8-12A Part 3 3. What liability,if any, should Top Sound report in its 2021 balance sheet? (Enter your answer in dollars, not in should be entered as 5,500,00o)) Prev 7 of 11 Next > The following information applies to the questions displayed below, 7 Top Sound International designs and sells high-end stereo equipment for auto and home use. Engineers notified management in December 2021 of a circuit flaw in an amplifier that poses a potential fire hazard. Further investigation indicates that a product recall is probable, estimated to cost the company $2.5 million. The fiscal year ends on December 31. Part 4 of 4 Exercise 8-12A Part 4 0.5 points 4. What entry, if any, should be recorded? (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions (Le. 5.5 should be entered as 5,500,000),) on list Journal entry worksheet if needed
