Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mateja Co. established a silver mine in 2019. Per regulation, they must restore the land to its former state after mining activities have finished. Mateja

Mateja Co. established a silver mine in 2019. Per regulation, they must restore the land to its former state after mining activities have finished. Mateja Co. believes the mine will cease operations after 20 years and restoration may total $5,000,000. Mateja Co's discount rate is 6%. On December 31, year 1 what adjusting entry is needed to record accretion. Mateja Co. follows ASPE. Oa Interest Expense........... Asset Retirement Obligation....... b. Asset Retirement Obligation.......... Accretion Expense....... 250,000 250,000 93,541 93,541 Oc Accretion Expense.... 93,541 Asset Retirement Obligation....... 93,541 Od. Interest Expense......... 93,541 Asset Retirement Obligation....... 93,541 Clear my choice The Arizona Coyotes Co. utilize the "revenue" approach during warranty accounting. In 2019, Arizona Coyotes had product sales of $750,000. The entirety of their sales come with a 2 year warranty (factored into price). They estimate 2% of the price relates to warranty, with 40% of this warranty portion relating to 2019, 60% to 2020. If the Arizone Coyotes paid $5,500 related to warranty claims during 2020, solve for their net warranty revenue (revenue minus warranty costs) for 2020. O a $3,500 O b. $9,500 OC $5,500 Od. $9,000 Poison Ltd. is currently facing a lawsuit as negligence on their partrelated to the dumping of chemicals is claimed to have poisoned residents in the city of their operations. Poison Ltd.'s legal team believes that it's likely Poison Litd. will not win this lawsuit and ultimately be liable to the residents of the city, in an amount ranging from $200,000 to $1,400,000. The legal team does believe, however, that $800,000 is most likely. Accordingly, following ASPE, Poison Ltd. should accrue a. a loss contingency of $800,000 but not disclose any additional contingency. O b. no loss contingency but disclose a contingency of $200,000 to $1,400,000. Oc a loss contingency of $200,000 and disclose an additional contingency of up to $1,200,000. O d. a loss contingency of $800,000 and disclose an additional contingency of up to $600,000. The Montreal Canadiens Co. had these balances in their accounts at December 31, 2019: - 4% note payable (issued Oct 1, 2019, maturing Sep 30, 2020) - $250,000 -6% note payable (issued Apr 1, 2019, payable in 6 equal annual instalments of $100,000 beginning Apr 1, 2020) - $600,000. The Montreal Canadiens Co. December 31, 2019 financial statements were to be issued on March 31, 2020. On January 15, 2020, all of the $600,000 balance of the 6% note was refinanced by issuance of a long-term note to be repaid in 2023. Further, on March 10, 2020, The Montreal Canadiens arranged to refinance the 4% note on a long term basis. Per IFRS, on the December 31, 2019 statement of financial position, the amount of the notes payable that the Montreal Canadiens Co. should classify as "current" liabilities is: O a. 350,000 O b. 250,000 O c. 100,000 O d. 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

=+. How trustworthy will the source be perceived as being?

Answered: 1 week ago