Question
Thompson Ltd must pay damages in relation to a drilling project environmental disaster. What would be included in the journal entry, assuming that the company
Thompson Ltd must pay damages in relation to a drilling project environmental disaster. What would be included in the journal entry, assuming that the company created a provision for $15 000 two months ago but the actual damages were $16 550?
| DR Provision for environmental disaster 16 550 | ||
| DR Loss on environmental disaster 16 550 | ||
| DR Provision for environmental disaster 15 000 | ||
| CR Cash 15 000 |
CHOICE
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
6th edition
978-0077400163
