Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

pls check this 4 for me thanks Pearl Ltd is preparing financial statements for the year ended on 30 June 2021. Identify and match each

pls check this 4 for me thanks
image text in transcribed
Pearl Ltd is preparing financial statements for the year ended on 30 June 2021. Identify and match each of the following statements to the most appropriate accounting treatment. . An amount of $50 000 owing to Joyce Ltd for services rendered during May 2021. Payable Damages awarded against Pearl Ltd resulting from a court case decided on 20 June 2021. The judge has announced that the amount of damage will be set at a future date, expected to be in September 2021. Pearl Ltd has received advice from its lawyers that the amount of the damages could be anything between $1 million and $3 million. Contingent Liability - Disclosure required Pearl Ltd involved in a litigation related to their products sold on 1 Feb 2021. Legal advisers estimate that it is reasonably possible that the company will lose the lawsuit. They also estimate the expenditure of this lawsuit to be $10,000, Provision Pearl Ltd operates profitably in a factory that it has leased and on which it pays quarterly rentals. It decides to relocate its operations to another facility. However, the lease on the old facility continues for the next two years. Unfortunately, the lease cannot be cancelled and Pearl Ltd is not allowed to sublet the factory to another party. The expected costs to satisfy this onerous contract are $300,000. None

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

Recommended Textbook for

Essentials of Accounting for Governmental and Not-for-Profit Organizations

Authors: Paul A. Copley

10th Edition

007352705X, 978-0073527055

More Books

Students also viewed these Accounting questions

Question

In what ways dies costco try to be a socially responsible company

Answered: 1 week ago

Question

Explain the pages in white the expert taxes

Answered: 1 week ago