Carson Company faces a probable loss on a pending lawsuit where the amount of the loss is estimated to be $500,000. The journal entry to recognize the potential loss is:
Debit Prepaid Legal Expense $500,000; credit Contingent Legal Liability $500,000.
Debit Legal Expense $500,000; credit Lawsuit Payable $500,000.
Debit Contingent Legal Expense $500,000; credit Contingent Legal Liability $500,000.
Debit Lawsuit Payable $500,000; credit Contingent Legal Liability $500,000.
No journal entry is required.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Carson Company faces a probable loss on a pending lawsuit where the amount of the loss is estimated to be $500,000. The journal entry to ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Let's say you work for a company that makes prepared breakfast cereals like corn flakes. Your company is planning to introduce a new hot breakfast product made from whole grains that would require some minimal preparation by the consumer.
Answers (1)
When should we NOT accept a factual claim as dependable: When the claim is undisputed common knowledge When the claim is the conclusion from a well-reasoned argument When the claim is supported by reasons that are well supported When the reasons are
Answers (1)
Which of the following industries is not included in the service-providing cluster? Select the best answer choice. A) Transportation and Utilities B) Manufacturing C) Government D) Professional and Business Services
Answers (1)
Ayayai Corporation has outstanding 400,000 shares of $10 par value common stock. The corporation declares a 100% stock dividend when the fair value of the stock is $63 per share.
Answers (1)
Which of the following is reported as a financing activity in the statement of cash flows? Multiple Choice The payment of interest on bonds payable. The receipt of dividend revenue. The acquisition of stock for the purpose of retiring it.
Answers (1)
New Questions in Business
The journal entry to close the Fees Earned, $131, and Rent Revenue, $24, accounts during the year-end closing process would involve: A. a debit to a general revenue account B. debits to the two revenue accounts C.
Answers (1)
Which of the following statements is not true: Multiple Choice Accounts receivable are increased by billings to customers. Accounts receivable are held by a seller. Accounts receivable arise from credit sales.
Answers (1)
Tonto Company purchased property for $140,000. The property included a building, equipment and land. The building was appraised at $98,000, the land at $63,000, and the equipment at $36,000.
Answers (1)
What are the Fed's main monetary policy targets? A. The money supply and interest rates B. Taxes and government spending C. Price stability and economic growth
Answers (1)
What is one effe ya for employers to keep their skill sets current
Answers (1)