insurance company will reimburse Fireworks for 70 % of its loss . What amount should Fireworks report as loss from the explosion ?
Question 9
When the dollar-value LIFO ( DV LIFO ) retail method is used , what is the first step in the calculation ?
Question 10
Smith Co . has a checking account at Small Bank and an interestbearing savings account at Big Bank . On December 31 , year 1 , the bank reconciliations for Smith are as follows : What amount should be classified as cash on Smith ' s balance sheet at December 31 , year 1 ?
Question 11
At the end of the current year ( calendar-fiscal year ), a creditor firm ' s 6 % note receivable balance is $ 10,000 . Two years remain in the note term . Interest is due each December 31 . The debtor ' s financial position has deteriorated causing the creditor to reevaluate the note . After careful consideration , the creditor believes that only 60 % of the principal ($ 10,000 ) will be collected at the end of the term . The only interest expected to be received is 2 % of the original principal for one year , also to be collected at the end of the term . At the end of the current year , what amount of expense or loss is recognized by the creditor for this loan impairment ? The present value of $ 1 two years hence at 6 % is . 89 , and at 2 % is . 961 .
Question 12