Financial statements for auditors fieldwork

Assignment Help Accounting Basics
Reference no: EM13160180

In March 2011, an explosion occurred at Kirk Co.'s plant, causing damage to area properties. By May 2011, no claims had yet been asserted against Kirk. Kirk's management and legal counsel, however, concluded that it was reasonably possible that Kirk would be held responsible for negligence, and that $4,000,000 would be a reasonable estimate of the damages. Kirk's $5,000,000 comprehensive public liability policy contains a $400,000 deductible clause. In Kirk's December 31, 2010 financial statements, for which the auditor's fieldwork was completed in April 2011, how should this casualty be reported?

Reference no: EM13160180

Questions Cloud

Explain main financial statements from credible sources : Select a company that you are familiar with from the transportation industry. Collect the 4 main financial statements from credible sources.
What is coordinated gene regulation : What is coordinated gene regulation? What is differentialgene expression?
Which are more prevalent in the human body : Which are more prevalent in the human body, Fenestrated Capillariesor Sinusoidal (Discontinuous) Capillaries?
Calculate molar concentration of cl- in this solution : a 325 ml sample of solution contains 25.3 g of CaCl2. calculate molar concentration of Cl- in this solution
Financial statements for auditors fieldwork : In Kirk's December 31, 2010 financial statements, for which the auditor's fieldwork was completed in April 2011, how should this casualty be reported?
Which of the following represents a reasonable value for k : For a given reaction, the reaction forms predominantly products at equilibrium (i.e. it essentially goes to completion). Which of the following represents a reasonable value for K
What impact do you think this new contract will have : According to the terms of the contract, the pilots will receive options to buy 14 million shares of the firm's stock over the next 10 years. What impact do you think this new contract will have on Southwest Airlines?
Compute retained earnings : Before the correction was made, and before the books were closed on December 31, 2011, retained earnings was understated by?
Explain pcl5 was allowed to decompose : An empty 2.00 L flask at 250.°C was filled with PCl5(g) to a pressure of 0.249 atm, and then the PCl5 was allowed to decompose as shown below.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare the entry to distribute the labor cost

Prepare the entry to distribute the labor cost if the job worked on during overtime was a rush order, the contract price of which included the overtime premium.

  Warranty accrual decision

Cameron Bly is a sales manager for an automobile dealership-Does the warranty accrual decision create any ethical dilemma for Bly? Since warranty expenses vary, what percent do you think Bly should choose for the current year? Justify your response.

  Estimating basic earnings per share

Rice Inc. had 420 million shares of common stock and 1 million shares of 6%, $200 par, cumulative preferred stock outstanding at the end of 2008 and 2009.

  Public company accounting oversight board

Evaluate the effectiveness of the PCAOB's oversight related to both corporate management's and a certified public accountant for addressing a material weakness in internal controls

  Adjustment to record the accrued fees

What is the adjustment to record the accrued fees? Indicate each account affected, whether the account is increased or decreased, and the amount of the increase or decrease.

  Consolidated financial statements

According to US GAAP, what should be the basis for reporting the assets and liabilities of Small within consolidated financial statements created on the date of acquisition?

  Impact on financial statements of missing step

What is the impact on the financial statements of missing a step when completing the accounting cycle?

  Stock of cardinal corporation

Kim owns 100% of the stock of Cardinal Corporation. In the current year Kim transfers an installment obligation, tax basis of $30,000 and fair market value of $200,000, for additional stock in Cardinal worth $200,000.

  First payment from an annuity

This year Larry received the first payment from an annuity that promises to pay him $3,000 per month for the rest of his life. The IRS tables indicate that given Larry's age, he should expect to receive 310 monthly payments.

  Company statement of cash flows

An increase in the bonds payable account of $200,000 over the course of a year would be shown on the company's statement of cash flows prepared under the indirect method as:

  Find variable overhead efficiency variance

You have been asked to prepare an analysis of the overhead costs in the order processing department of a mail order company like Harriet Carter Corporation. As an initial step, you prepare a summary of some events that bear on overhead for the mos..

  What is the effective interest rate

A man has a simple discount note at $6,200 at an ordinary discount bank rate of 8.48% for 40 days; what is the effective interest rate?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd