F-2 Simulations

Question 1

Net amount in the notes of the financial statement

Answer 1

For the notes of a financial statement you should have a gross amount and things that affect it to get the net amount, not just the net amount

Question 2

Contingency event that happens after year end, but is settled before financial statements are issued

Answer 2

Accrue for it in journal entry

Dr. Contingency expense
Cr. Contingency liability

Question 3

Is the change in stock prices considered a subsequent event?

Answer 3

No so there are no journal entries for it

Question 4

How to calculate operating profit for segment reporting

Answer 4

Subtract traceable operating expenses from sales of segment in questions