question archive 1) Russia Company provided the following information on December 31, 2021: Jan
1) Russia Company provided the following information on December 31, 2021: Jan
Subject:AccountingPrice: Bought3
1) Russia Company provided the following information on December 31, 2021: Jan. 15, 2022 - P3,000,000 of accounts receivable was written off due to the bankruptcy of a major customer; Feb. 14, 2022 - A shipping vessel of Russia with carrying amount of P5,000,000 was completely lost at sea because of a hurricane; March 11, 2022 - A court case involving Russia as the defendant was settled and the entity was obligated to pay the plaintiff P1,500,000. Russia previously recognized a P1,000,000 liability for the suit because management deemed it probable that the entity would lose the case; March 25, 2022 - One of Russia's factories with a carrying amount of P15,000,000 was completely razed by forest fires that erupted in its vicinity. The management of the entity completed the draft of the financial statements for 2021 on February 10, 2022. On March 20, 2022, the board of directors authorized the financial statements for issue. The entity announced the profit and other selected information on March 22, 2022. The financial statements were made available to shareholders on April 2, 2022 at the annual shareholders' meeting where the financial statements were approved. The financial statements were filed with the regulatory agency the very next day.
1. Using the information on Russia Company. What are the necessary disclosures to reflect in the financial statements?
a) About the shipping vessel owned by Russia which was lost at sea only.
b) About the factory destroyed by fire only.
c) Disclose both the shipping vessel which was lost at sea and the factory destroyed by fire.
d) There is nothing to disclose
2. Still using with Russia Company. What is the adjusting entry to record the event on Jan. 15, 2022?
a) About the shipping vessel owned by Russia which was lost at sea only.
b) About the factory destroyed by fire only.
c) Disclose both the shipping vessel which was lost at sea and the factory destroyed by fire.
d) There is nothing to disclose
3. In Russia Company, what is the adjusting entry for the event on March 11, 2022?
a) About the shipping vessel owned by Russia which was lost at sea only.
b) About the factory destroyed by fire only.
c) Disclose both the shipping vessel which was lost at sea and the factory destroyed by fire.
d) There is nothing to disclose
