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The Word The Story The Picture The Page The Power The Purpose newswriter s handbook WWW.TECHPEP.ORG JOURNALISM STAFF BENSON POLYTECHNIC H.S. 08 09 By Rob Melton THE NEWS WRITER S HANDBOOK foreward.

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Read the documents from the company's attorney. ... Write a journal entry to record the estimated loss. ... Enter the dollar amount in the general ledger to increase the "Lawsuit Expense" account. ... Include the "Lawsuit Expense" account on the company's income statement and in the net income calculation.

Gain contingencies should be disclosed in the notes to the financial statements if it not misleading. Otherwise, potential gains should only be recorded to the financial statements when the activity can be recognized (i.e. the company wins the lawsuit).

What is a Lawsuit Payable? A lawsuit payable is a general ledger account that contains the amount owed to the opposing party in a lawsuit. Liabilities are only recorded in this account if the amount to be paid is both probable and can be estimated.

Assuming that the loss contingency is “probable” and can be reasonably estimated, then a journal entry should be recorded to accrue the liability. The journal entry would be to debit legal expense and credit to record the legal liability.

The disclosure should include the nature of the contingency and an estimate of the possible liability, an estimate of the range of the possible liability, or a statement that such an estimate cannot be made. When disclosing that an estimate cannot be made, the claimed amount should be disclosed.

In the case of business litigation in which one party sues another for breach of contract and seeks monetary damages, for instance, account settlement would occur if the parties decide to resolve their dispute before going to court.

Under settlement date accounting, a transaction is recorded in the general ledger when it is "fulfilled" or "settled." This is contrasted with trade date accounting, where transactions are recorded in the general ledger at the initiation date rather than at completion.

Settlement account is an account that is used in Balance of Payment (BOP) accounting to keep track of central banks' reserve asset dealings with one other. The official settlement A/c keeps track of transactions that involve foreign exchange reserves, bank deposits, special drawing rights (SDRs) and gold.

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© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232
Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
Privacy Notice
Legal Hub
Content Takedown Policy
Bug Bounty Program
About Us
Blog
Affiliates
Contact Us
Delete My Account
Site Map
Industries
Forms in Spanish
Localized Forms
State-specific Forms
Forms Kit
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate WorkFlow
DocHub
Instapage
Social Media
Call us now toll free:
+1 833 426 79 33
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232