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Accounting Analysis
Date Posted: 20/02/2021
Category: Business
Due Date: 20/02/2021
Instruction
Questions: Refer to BP’s third-quarter 2010 report. Details about the impact of the Gulf of Mexico oil spill on BP’s financial statements are provided in Note 2—Significant event in the period. 1) According to Note 2, what is the net impact on the balance sheet at September 30, 2010, of the recorded activities relating to the oil spill? What are the balances of the liabilities labeled Provisions and Escrow account at September 30, 2010? Where do the Provision and Escrow account liabilities appear on BP’s balance sheet? 2) Calculate the change in the Provision liability during the third quarter of 2010. What journal entry did BP record with respect to this liability in the third quarter of 2010?
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