Nickolas Imports recorded a restructuring charge of $21.6 million during fiscal 2014 related entirely to the closing of its California based operations in San Diego and in Tijuana, Mexico. The companys financial statement footnotes indicated that expected employee separation payments amounted to $16.8 million and that fixed asset write-downs accounted for the remainder. Nickolas had never before incurred restructuring charges. At the end of the year, the companys balance sheet included a restructuring accrual of $3,600,000.

Required:

Use the financial statements effect templates to record

1. the restructure charges, and
2. the cash settlements.