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