1. Quarter Corporation had the following transactions during the quarter ended June 30, 2010:

Loss from tsunami damage (extraordinary) $985,000
Payment of fire insurance premium for the period April 1, 2010 - March 31, 2011 480,000

I suggest you hold your questions until the ones you've posted are answered.

Very few of our accounting questions are answered. We don't have any accountants who volunteer to help students here.

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To determine the relevance of these transactions, we need to understand their impact on the financial statements of Quarter Corporation. Specifically, we need to consider how they affect the income statement and the balance sheet.

1. Loss from tsunami damage (extraordinary): This transaction represents a significant loss incurred due to tsunami damage. It is classified as an extraordinary item because it is an unusual and infrequent event that is not expected to recur in the future. This loss would be subtracted from the company's regular operating income on the income statement.

2. Payment of fire insurance premium: This transaction represents the payment of an insurance premium for the period April 1, 2010, to March 31, 2011. It is an operating expense and would be accounted for on the income statement. The amount of the premium, $480,000, would be deducted from the company's total income, reducing its profitability.

To understand the impact of these transactions more holistically, we would need additional information, such as the company's revenues and other expenses, and the amount of insurance coverage for the tsunami damage. Additionally, we would need data from before and after these transactions to assess their impact on the financial statements.