Company A filed suit against Company B, seeking damages for patent infringement

Question

Company A filed suit against Company B, seeking damages for patent infringement Company B's legal counsel believes it is probable that Company B will settle the lawsuit for an estimated amount in the rage of $50,000 to $100,000, with all amounts in the rage considered equally likely. How should Company B report this litigation? As a liability for $50,000 with disclosure of the range. As a liability for $75,000 with disclosure of the range. As a liability for $100,000 with disclosure of the range. As a disclosure only. No liability is reported. Company's cash balance at the end of the month was $6,500. Alter comparing the company's records with the monthly bank statement. The company's accountant identified the following reconciling items: outstanding checks, $800; deposition transit, $700; bank service charge, $30; NSF check, $500. What is the adjusted bank balance? The adjusted bank balance cannot be determined from this information

Explanation / Answer

24) correct option is "B" 5970

Adjusted balance = 6500 -30 -500 = 5970

We have use cash balance as per company records and make adjutment .as at last adjusted balance as per company records = adjusted balance as per bank statement.

23)It is a contingent liability also the amount is not certain.so only disclosure is required .

correct option is "D"

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