+1-415-670-9189
info@expertsmind.com
Possibilities for recording liability
Course:- Cost Accounting
Reference No.:- EM13298393




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Cost Accounting

I have a liability that was created by the exercise of a put option on a warrant. The warrant had a strike price of $0.001 and the put has a value of $2.7M. The put option first was available in April 2007 and was exercised in April 2009. In recording the liability, I categorized it as an expense.

Although the liability and corresponding expense should have been accrued since April 2007, it was not recognized until April 2009. My question is, was it proper to record the liability as an expense when the entry was made?

Are there any other possibilities for recording this liability?




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Cost Accounting) Materials
For each of these five separate cases, identify the principle( s) of internal control that is violated. Recommend what the business should do to ensure adherence to principles
If you select a random sample of 30 download times, what is the probability that the sample mean is less than 0.75 second? Please submit your calculation and specify which t
A description of the objectives of an MIS system. why the reports should be integrated, using the very same data what kinds of data different user groups would likely requir
Bonds that may be exchanged for common stock at the option of the bondholders are called and Bonds that are subject to retirement at a stated dollar amount prior to maturity a
Write an expression that represents the cost of the admission prices and the concession stand items based on the available information. Letdrepresent the cost for a large dr
Determine whether Ross should accept or reject a lot if there are: Two defective housings in the sample. Three defective housings in the sample. Explain your answer i
Compute the total cost of the work in process inventory on January 31 and compute the cost of jobs completed during January, and present the proper journal entry to reflect jo
Surgical Products produces latex surgical gloves. Machines perform the majority of the processing for 1,000 pairs of gloves per hour - Machine operators are considered direct