Unformatted text preview: Order. The company, pending appeal, has not recorded the $4.5 million favorable judgment. Required: What journal entries, if any, has Hyer recorded regarding this contingency? Explain its rationale. Hyer has not recorded a journal entry for the contingency. Although a jury returned a verdict in favor of Hyer's subsidiary, the case is still on appeal. Thus, this is a gain contingency for Hyer and should not be recorded until the case appeal has been ruled upon. AACSB: Analytic AICPA FN: Measurement Blooms: Analyze Difficulty: 2 Medium Learning Objective: 13-06 Demonstrate the appropriate accounting treatment for contingencies; including unasserted claims and assessments. Topic: Accounting for contingencies...
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- Spring '11
- Supreme Court of the United States, Hyer