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Chapter: 10 -Problem: 22 >> On March 1 2020, Russell Winery Ltd. purchased a five-hectare commercial vineyard for $1,050,000. The total purchase price was based on appraised market values of the building, grapevines, and equipment ($580,000, $260,000, and $210,000, respectively). Russell Winery incurred the following cash expenditures between March 1 and June 30, the date of Russell Winery’s first harvest from the grapevines
Answer Preview: a Under IFRS separate standards for biological assets are set out in IAS 41 Agriculture IAS 41 defin…

, Chapter: 12 -Problem: 15 >> On December 31, 2020, Convenient Cabs Incorporated was granted 10 taxi licences by the City of Somerdale, at a cost of $1,000 per licence. It is probable that Convenient Cabs will receive the expected future economic benefits of the taxi licences. There is an active market for taxi licences in Somerdale.a. Prepare the journal entry to record the costs incurred.b. Discuss how the licences are accou
Answer Preview: a It is probable that the entity will receive the expected future economic benefits and the cost of …

, Chapter: 6 -Problem: 13 >> During December 2020, Soft Skin Ltd. sells $20,000 of gift cards to customers. From reliable past experience, management estimates that 8% of the gift cards sold will not be redeemed by customers. In January 2021, $2,000 of these cards is redeemed for merchandise with a cost of $1,500. In February 2021, a further $10,000 of these cards is redeemed for merchandise with a cost of $8,000. The company
Answer Preview: a December 2020 Cash 20000 Contract Liability 20000 To record the sale of gift cards b Jan…

, Chapter: 5 -Problem: 6 >> The partner in charge of the James Spencer Corporation audit comes by your desk and leaves a letter he has started to the CEO and a copy of the statement of cash flows for the year ended December 31, 2020. Because he must leave on an emergency, he asks you to finish the letter by explaining (1) the difference between the net income and cash flow amounts, (2) the importance of operating cash flow,
Answer Preview: Date James Spencer III CEO Spencer Corporation 125 Bay Street Toronto ON Dear Mr Spencer I have good news and bad news about the financial statements …

, Chapter: 11 -Problem: 3 >> Chong Corp. purchased a machine on July 1, 2023, for $30,000. Chong paid $200 in title fees and a legal fee of $100 related to the machine. In addition, Chong paid $500 in shipping charges for delivery, and $400 to a local contractor to build and wire a platform for the machine on the plant floor. The machine has an estimated useful life of 10 years, a total expected life of 12 years, a residual v
Answer Preview: Original Cost 30000 200 100 500 400 31200 a b Under ASPE deprec…

, Chapter: 6 -Problem: 10 >> In February, Huron Ltd. incurred costs to obtain a contract with a customer. The contract is for two years. The following costs were incurred: Travel costs to meet with the customer ......................................    $10,000 Legal costs to write up the agreement .......................................     $  5,000 Cost of meals ...............................................................
Answer Preview: Only directly related costs are capitalized and amortized over the term of the contract Tra…

, Chapter: 5 -Problem: 5 >> Lydia Trottier has prepared baked goods for sale since 1998. She started a baking business in her home and has been operating in a rented building with a storefront since 2003. Trottier incorporated the business as MLT Inc. on January 1, 2020, with an initial share issue of 1,000 common shares for $2,500.Lydia Trottier is the principal shareholder of MLT Inc.Sales have increased by 30% annually si
Answer Preview: a MLT Inc Statement of Income For the Five Months Ended May 31 2020 Sales 22770 5320 4336 32426 Cost of goods sold 1 12451 Gross profit 19975 Operatin…

, Chapter: 1 -Problem: 26 >> Explain the impact of digitization of information on the accounting profession.
Answer Preview: Digitization has accelerated the amount and variety of data availa…

, Chapter: 8 -Problem: 8 >> In February 20X3, La Fondue Ltd. signed a two-year contract with a Quebec cheese supplier to provide a minimum of 1,000 kilograms of fine cheese for fondue at a fixed price of $20 per kilogram. By the end of September, La Fondue had purchased 650 kg at the agreed-upon price. By the end of October, the end of the fiscal year, the open market price of the cheese dropped to $17 per kg due to excess c
Answer Preview: 31 October Loss on onerous purchase commitment 350 kg 3 loss 1050 Provision for onerous pur…

, Chapter: 4 -Problem: 7 >> On January 1, 2020, Twist Corp. had cash and common shares of $60,000. At that date, the company had no other asset, liability, or shareholders’ equity balances. On January 2, 2020, Twist paid $40,000 cash for equity securities that it designated as fair value through other comprehensive income (FV-OCI) investments. During the year, Twist received non-taxable cash dividends of $18,000 and had an u
Answer Preview: a Net income 18000 dividend revenue b Other comprehens…

, Chapter: 5 -Problem: 21 >> Use the information in E5.17 for Dropafix Inc. Instructionsa. Calculate the current and acid-test ratios for 2019 and 2020.b. Calculate Dropafix’s current cash debt coverage ratio for 2020.c. Calculate Dropafix’s cash debt coverage ratio for 2020.d. Calculate Dropafix’s times interest earned ratio for 2020.e. Based on the analyses in parts (a) through (d), comment on Dropafix’s liquidity, financia
Answer Preview: a 2020 2019 Current ratio 173 214 Acid test ratio 87 109 2020 20000 86000 103000 2000115000 2000 5000 2019 38000 74000 102000 6000100000 3000 2020 200…

, Chapter: 11 -Problem: 12 >> Chuckwalla Limited purchased a computer for $7,000 on January 1, 2023. Straight-line depreciation is used for the computer, based on a five-year life and a $1,000 residual value. In 2025, the estimates are revised. Chuckwalla now expects the computer will be used until December 31, 2026, when it can be sold for $500. Calculate the 2025 depreciation expense.
Answer Preview: Annual depreciation expen…

, Chapter: 8 -Problem: 19 >> You are auditing the records of Lin Corp. The company took a physical inventory under your observation. However, the valuations have not been completed. The records of the company provide the following data: sales, $400,000 (gross); returned sales, $17,500 (returned to stock); purchases (gross), $250,000; beginning inventory, $160,000; freight in, $8,000; and purchase returns and allowances, $7,00
Answer Preview: Cost of goods available for sale Beginning inventor…

, Chapter: 11 -Problem: 8 >> Linda Monkland established Monkland Ltd. in mid-2019 as the sole shareholder. The accounts on June 30, 2020, the company?s year end, just prior to preparing the required adjusting entries, were as follows: All the capital assets were acquired and put into operation in early July 2019. Estimates and usage information on these assets were as follows: Building: 25-year life, $15,000 residual value
Answer Preview: a To Linda Monkland Shareholder of Monkland Ltd From Your name Accountant Date June 30 2020 Subject Recommendation of accounting methods This memo addresses the concerns and constraints you raised and …

, Chapter: 4 -Problem: 12 >> Sierra Corporation had sales revenue of $5,850,000 and investment revenue of $227,000 for the year ended December 31, 2020. Other items pertaining to 2020 were as follows:Cost of goods sold ....................................................... $4,610,000Salaries and wages expense (sales) ...........................      368,000Advertising expense .................................................
Answer Preview: Sierra Corporation Income Statement For the Year En…

, Chapter: 9 -Problem: 25 >> Use the information from BE9.24, except assume that Julip Corporation is a private enterprise that applies ASPE. Prepare Julip’s 2023 entries to record all transactions and events related to its significant influence investment in Krov Corporation, assuming that (a) Krov’s shares are traded in an active market, Julip applies the FV-NI approach, and the fair value of Julip’s share of Krov at Decemb
Answer Preview: a b FVNI Investments Cash To record investme…

, Chapter: 10 -Problem: 1 >> Bright Lights Ltd. (Bright) is a private company incorporated five years ago by a group of friends who had recently graduated with business or engineering degrees. The group is interested in innovative designs to meet a variety of lighting needs and has been working with photovaltaics technology (PV). PV is a clean, sustainable method of converting solar energy into direct current electricity. PV
Answer Preview: Overview Bright Lights Limited Bright is a relatively young company involved in manufacturing solar devices The company is in the development stage and must be viewed as a high risk situation because …

, Chapter: 6 -Problem: 32 >> During 2020, Nilsen Company started a construction job with a contract price of $1.6 million. The job was completed in 2022. The following information is available. The contract is non-cancellable. Instructions a. Calculate the amount of gross profit to be recognized each year, assuming the percentage-ofcompletion method is used. b. Prepare all necessary journal entries for 2021. c. Calculate th
Answer Preview: a Gross profit recognized in 2020 2021 2022 Contract price 1600000 1600000 1600000 Costs Costs to da…

, Chapter: 4 -Problem: 1 >> Snow Spray Corp. (SSC) recently filed for bankruptcy protection. The company manufactures downhill skis and reports under ASPE. With the increased popularity of such alternative winter sports as snowboarding and tubing, sales of skis are sagging. The company has decided to start a new line of products that focuses on the growing industry surrounding snowboarding and tubing. At present, however, th
Answer Preview: Overview The company is in bankruptcy proceedings and needs cash to effect a change in strategy The bank is therefore the key user and will look to assess the ability of the company to repay loans The …

, Chapter: 12 -Problem: 20 >> On July 1, 2020, Zoe Corporation purchased the net assets of Soorya Company by paying $415,000 cash and issuing a $50,000 note payable to Soorya Company. At July 1, 2020, the statement of financial position of Soorya Company was as follows: The recorded amounts all approximate current values except for land (worth $60,000), inventory (worth $125,000), and trademarks (worthless). The receivables
Answer Preview: a Cash 75000 Accounts Receivable 114000 Inventory 125000 Land 60000 Buildings 75000 Equipment 90000 Goodwill 238000 Allowance for Doubtful Accounts 12…

, Chapter: 10 -Problem: 15 >> Wordcrafters Inc. is a book distributor that had been operating in its original facility since 1991. The increase in certification programs and continuing education requirements in several professions has contributed to an annual growth rate of 15% for Wordcrafters since 2014. Wordcrafters’ original facility became obsolete by early 2020 because of the increased sales volume and the fact that Word
Answer Preview: a Calculation of WeightedAverage Accumulated Expenditures Expen…

, Chapter: 5 -Problem: 10 >> Southern Corporation’s adjusted trial balance contained the following accounts at December 31, 2023: Retained Earnings $120,000; Common Shares $700,000; Bonds Payable $100,000; Contributed Surplus $200,000; Preferred Shares $50,000; Goodwill $55,000; and Accumulated Other Comprehensive Income (Loss) ($150,000). Prepare the shareholders’ equity section of the statement of financial position.
Answer Preview: Shareholders equity Share capital Preferred shar…

, Chapter: 8 -Problem: 7 >> Alomar Ltd. has been suffering the effects of strong price competition on a particular inventory item from an overseas company that has moved into Alomar’s Canadian market. At the end of 20X4, Alomar management decided that the carrying cost (at historical value) of its year end inventory was not recoverable and that Alomar would have to reduce its prices drastically to meet the competitor’s price
Answer Preview: Requirement 1 Holding loss on inventory COS 8000 Inventory 8000 Requirement 2 Accounts receivab…

, Chapter: 5 -Problem: 6 >> Lowell Corp.’s December 31, 2020 trial balance includes the following accounts: Inventory $120,000; Buildings $207,000; Accumulated Depreciation—Equipment $19,000; Equipment $190,000; Land Held for Speculation $46,000; Accumulated Depreciation—Buildings $45,000; Land $71,000; Equipment Under Lease $229,000; and Accumulated Depreciation—Leased Equipment $103,000. Prepare the property, plant, and eq
Answer Preview: Property plant and equipment Land 71000 Buildings 20700…

, Chapter: 7 -Problem: 17 >> Chessman Corporation factors $600,000 of accounts receivable with Liquidity Financing, Inc. on a with recourse basis. Liquidity Financing will collect the receivables. The receivable records are transferred to Liquidity Financing on August 15, 2020. Liquidity Financing assesses a finance charge of 2.5% of the amount of accounts receivable and also reserves an amount equal to 5.25% of accounts re
Answer Preview: a To be recorded as a sale under ASPE all of the following conditions must be met 1 The transferred assets have been isolated from the transferor put beyond reach of the transferor and its creditors e…

, Chapter: 6 -Problem: 37 >> Assume the facts given in BE6.36 for Martin Corp. Prepare the December 31, 2021 yearend journal entry to record any loss from the contract assuming Martin uses the completed-contract method. BE6.36Inexperienced construction company Martin Corp. signed a risky non-cancellable contract to build a research facility at a fixed contract amount of $2 million. The work began in early 2020 and Martin incu
Answer Preview: December 31 2021 Loss from …

, Chapter: 4 -Problem: 20 >> Canviar Corp. maintains its financial records using the cash basis of accounting. Because it would like to secure a long-term loan from its bank, the company asks you, as an independent CPA, to convert its cash basis income statement information to the accrual basis. You are provided with the following summarized data for 2018, 2019, and 2020: Instructions Using the information above, prepare ab
Answer Preview: a Canviar Corp Income Statement Cash Basis For the Year Ended December 31 2018 2019 Sales …

, Chapter: 10 -Problem: 19 >> How can big data be used to help properly measure property, plant, and equipment at fair value for large real estate companies, such as Brookfield Asset Management Inc.?
Answer Preview: Companies like Brookfield Asset Management have large amounts of Property Pla…

, Chapter: 5 -Problem: 4 >> Selected accounts from the SFP of Lexy Ltd. at 31 December 20X7 and 20X6 are presented below. During the year, equipment with an original cost of $200,000 and net book value of $85,000 was sold at a loss of $15,000. Other equipment was purchased for cash. Required:List the items that would be included in the SCF from these accounts for 20X7. Include the appropriate section (operating, investing, o
Answer Preview: Operating activities add back loss 15000 Operating activit…

, Chapter: 7 -Problem: 1 >> The controller for Fashion Co. is trying to determine the amount of cash to report on the December 31, 2020 statement of financial position. The following information is provided:1. A commercial savings account with $600,000 and a commercial chequing account balance of $900,000 are held at First National Bank. There is also a bank overdraft of $35,000 in a chequing account at the Royal Scotia Bank
Answer Preview: a Cash includes the following 1 Commercial savings account x First National Bank 600000 2 Commercial chequing account x First National Bank 900000 3 M…

, Chapter: 6 -Problem: 49 >> Obtain the 2016 annual report for Bombardier Inc. from the company’s website or from SEDAR (www.sedar.com).  Required:a. How much in inventories did the company have at the end of 2016? What three components comprise this amount?b. How does the company determine the amount for work in progress on long-term contracts?c. For finished products, how does the company determine the cost of finished good
Answer Preview: a According to Bombardiers 2016 annual report the company had 6692 billion in inventories at the end …

, Chapter: 4 -Problem: 13 >> The following balances were taken from the books of Quality Fabrication Limited on December 31, 2023: InstructionsPrepare a multiple-step income statement showing expenses by function. Assume that 150,000 common shares were outstanding during the year. Quality Fabrication follows ASPE but decides to disclose EPS on its income statement.
Answer Preview: Quality Fabrication Limited Income Statement For the Year Ended D…

, Chapter: 5 -Problem: 19 >> Mackey Ltd. reported the following selected balances:Other Information:1. There was a stock dividend of $25,000 on common shares and a cash dividend of $35,000.2. Of the preferred shares, $50,000 were retired for cash, and $75,000 were converted into bonds payable.3. Some common shares were issued for cash during the period.4. Machinery with a net book value of $28,100 and an original cost of $48,
Answer Preview: Mackey Ltd Partial Statement of Cash Flows For the year ended 31 December 20X4 Operatin…

, Chapter: 4 -Problem: 3 >> Use the annual reports and/or the audited annual financial statements of Brookfield Office Properties Inc. for the year ended December 31, 2015, and of Mainstreet Equity Corp. for the year ended September 30, 2016, to answer the following questions. These reports are available on SEDAR (www.sedar.com) or the companies’ websites. Instructionsa. Look at the Management Discussion and Analysis and th
Answer Preview: a Both Brookfield Office Properties Inc and Mainstreet Equity Corp are in the real estate property business Mainstreets strategy includes investing in …

, Chapter: 8 -Problem: 8 >> Eureka Limited has a calendar-year accounting period. The following errors were discovered in 2020.1. The December 31, 2018 merchandise inventory had been understated by $51,000.2. Merchandise purchased on account in 2019 was recorded on the books for the first time in February 2020, when the original invoice for the correct amount of $2,400 arrived. The merchandise had arrived on December 28, 201
Answer Preview: a 1 Net income for 2019 is overstated by 51000 because beginning inventory is …

, Chapter: 4 -Problem: 20 >> In 2020, I & T Corporation reported net income of $8.6 million, and declared and paid preferred share dividends of $3.2 million. During 2020, I & T had a weighted average of 900,000 common shares outstanding. Calculate I & T’s 2020 earnings per share. Corporation A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a b
Answer Preview: 8600000 …

, Chapter: 5 -Problem: 18 >> Miller Ltd. engaged in the following cash transactions during 2023: Miller prepares financial statements in accordance with ASPE. Calculate the net cash provided (used) by investing activities. Transcribed Image Text: Proceeds from sale of land and building Repurchase of company's own shares Purchas
Answer Preview: Proceeds from sale of land an…

, Chapter: 9 -Problem: 15 >> Discoveries Ltd. (DL) is involved in research and development related to new processes to make manufacturing more efficient and environmentally friendly. The company has been working on a number of new projects for the past three years. On 31 October 20X5, the company was able to demonstrate the feasibility and potential markets for its latest project. In fact, it has a client that has already ind
Answer Preview: Requirement 1 The research costs previously expensed of 4400000 …

, Chapter: 4 -Problem: 11 >> Mega Inc.’s manufacturing division lost $100,000 (net of tax) for the year ended December 31, 2020, and Mega estimates that it can sell the division at a loss of $200,000 (net of tax). The division qualifies for treatment as a discontinued operation. (a) Explain how the discontinued operation would be measured and presented on the income statement and statement of financial position under ASPE. (b
Answer Preview: a The 100000 net of tax loss from operation of the discontinued division and the 200000 net of tax l…

, Chapter: 10 -Problem: 5 >> Kiev Corp. was incorporated on January 2, 2020, but was unable to begin manufacturing activities until July 1, 2020, because new factory facilities were not completed until that date. The Land and Building account at December 31, 2020, contained the following entries and balance: The following additional information needs to be considered: 1. To acquire land and a building, the company paid $110
Answer Preview: 1 Land Schedule A 181100 Buildings Structure Schedule B 116860 Buildings HVAC Schedule B 30000 Insur…

, Chapter: 13 -Problem: 15 >> The adjusted trial balance of North Bay Corporation is provided in the following work sheet for the year ended December 31, 2020. Instructions The note payable is due in four months. Complete the work sheet and prepare a statement of financial position as illustrated in this appendix. Transcribed Image Text:
Answer Preview: 1 Worksheet North Bay Corporation Worksheet For the year ended December 31 2020 Adjusted trial balan…

, Chapter: 5 -Problem: 17 >> Assume that Ames Company’s net income of $151,000 in BE5.16 was based on sales of $600,000, cost of goods sold of $200,000, salaries and wages of $157,000, depreciation expense of $44,000, and income tax expense of $48,000. Prepare the cash flows from operating activities section of the statement of cash flows using the direct method. BE5.16Ames Company reported 2020 net income of $151,000. During
Answer Preview: Cash flows from operating activities Cash received from cus…

, Chapter: 7 -Problem: 22 >> Grand Ltd. is a Canadian company that had the following transactions in 20X7:a. Sold goods to a customer in Belgium on 25 November for 220,000 euros.b. Sold goods to a U.S. customer on 25 November for US $80,000.c. Sold goods on 1 December, to a British customer for 140,000 euros.d. On 15 December, the customer in transaction (a) paid.At year end, the other two accounts receivable were still outst
Answer Preview: Exchange gain or loss in 20X7 a220000 x 155 142 28600 loss …

, Chapter: 10 -Problem: 8 >> The production manager of Chesley Corporation wants to acquire a different brand of machine by exchanging the machine that it currently uses in operations for the brand of equipment that others in the industry are using. The brand being used by other companies is more comfortable for the operators because it has different attachments that allow the operators to adjust the controls for a variety of
Answer Preview: a 1 Chesley Corporation Cash 23000 Machinery New 69000 Accumulated Depreciation Machinery 50000 Loss on Disposal of Machinery 1 18000 Machinery Old 160000 1 Calculation of loss Carrying value 110000 F…

, Chapter: 12 -Problem: 13 >> Lakeshore Corporation purchased a patent from MaFee Corp. on January 1, 2020, for $87,000. The patent had a remaining legal life of 16 years. Prepare Lakeshore’s journal entries to record the 2020 patent purchase and amortization for the year rounded to the nearest dollar. Corporation A Corporation is a legal form of business that is separate from its owner. In other words
Answer Preview: Intangible Assets Patents 87000 Cash 87…

, Chapter: 4 -Problem: 16 >> Rainy Day Umbrella Corporation had the following balances at December 31, 2019 (all amounts in thousands): preferred shares, $3,375; common shares, $8,903; contributed surplus, $3,744; retained earnings, $23,040; and accumulated other comprehensive income, $2,568.During the year ended December 31, 2020, the company earned net income of $7,320,000, generated an unrealized holding gain on FV-OCI inv
Answer Preview: Rainy Day Umbrella Corporation Statement of Changes in Equity For the Year Ended Decemb…

, Chapter: 10 -Problem: 26 >> Uplifting Co. is a manufacturer of escalators and elevators. The following provides information on two types of PPE as at the end of fiscal year 2020:  Required:a. Using the above information, compute the depreciation that would be recorded on each of the two assets for 2021. Do not use the information below.b. At the beginning of fiscal year 2021, Uplifting conducted appraisals of these assets. T
Answer Preview: a Depreciation for 2021 Assemblyline Equipment 800000 8000000 cost 0 residual value 10 years 800000 …

, Chapter: 11 -Problem: 16 >> What is value in use, and how is it calculated under the rational entity impairment model by companies following IFRS? How can the use of big data assist companies performing value-in-use calculations when testing assets for impairment?
Answer Preview: Value in use is the return that a company canearn from using an asset as oppos…

, Chapter: 8 -Problem: 6 >> Oporto Corp. produces and sells forklift trucks. Model 17A (the “Protex”) has a list price of $140,000. The production cost for the 20 finished Protex units in inventory at the end of 20X4 was $120,000 per unit. Due to recent improvements in manufacturing flow, the cost of new production is expected to be $108,000 in the next year.The list price for the Protex will be reduced by $10,000 at the beg
Answer Preview: Requirement 1 Average discount X 40 of sales at 10 discount 60 of sales at 3 di…

, Chapter: 10 -Problem: 6 >> On June 28, 2020, in relocating to a new town, Kerr Corp. purchased a property consisting of two hectares of land and an unused building for $225,000 plus property taxes in arrears of $4,500. The company paid a real estate broker a fee of $12,000 for finding the property and legal fees on the purchase transaction of $6,000. The closing statement indicated that the assessed values for property tax
Answer Preview: a Kerr Corp Cost of Buildings Conservative approach Fixedprice contract original 1300000 Plans specifications and blueprints 25000 Architects fees 82000 Upgrading of windows 46000 Internal direct labo…

, Chapter: 4 -Problem: 18 >> At December 31, 2020, Tres Hombres Corporation had the following shares outstanding:10% cumulative preferred shares, 107,500 shares outstanding .................... $10,750,000 Common shares, 4,000,000 shares outstanding ................................................. 20,000,000During 2020, the corporation’s only share transaction was the issuance of 400,000 common shares on April 1. During 2020
Answer Preview: Net income Income from continuing operations before tax 23650…

, Chapter: 7 -Problem: 47 >> Green Teaz (GT) has a December 31 fiscal year-end. The company purchased Hydro One bonds with face value of $10,000. These bonds were purchased on January 1, 2020, at a cost of $10,267. The bonds pay annual interest at 7% and mature on January 1, 2023. The yield on the date of purchase was 6%. These bonds had a market value of $10,200 and $10,100 at the end of 2020 and 2021, respectively. GT class
Answer Preview: a Amortization schedule for GTs investment in Hydro One bonds Year Beginning Balance Interest Incom…

, Chapter: 3 -Problem: 2 >> Companies can leverage big data in business decision-making. While this may provide opportunities to companies, there are many challenges as well. Identify the five Vs of big data and discuss the challenges they create.
Answer Preview: There are 3 Vs of big data Plus 2 Volume volume is significant Handling lar…

, Chapter: 9 -Problem: 12 >> Fong Corp. reported various transactions in 20X2:a. Equipment with an original cost of $32,500 and accumulated depreciation of $26,000 was deemed unusable and was sold for $250 scrap value.b. A new machine was acquired for $37,850. The invoice was marked 2/10, n/30, but Fong did not pay in time to take advantage of the 2% discount for early payment and thus paid the gross amount of $37,850. Wiring
Answer Preview: a Cash 250 Loss on disposal of equipment 6250 Accumulated depreciation equipment 26000 Equipment 325…

, Chapter: 7 -Problem: 7 >> On October 1, 2020, Healy Farm Equipment Corp. sold a harvesting machine to Homestead Industries. Instead of a cash payment, Homestead Industries gave Healy Farm Equipment a $150,000, twoyear, 10% note; 10% is a realistic rate for a note of this type. The note required interest to be paid annually on October 1, beginning October 1, 2021. Healy Farm Equipment’s financial statements are prepared on
Answer Preview: a October 1 2020 Notes Receivable 150000 Sales Revenue 150000 December 31 2020 Interest Receivable 3…

, Chapter: 12 -Problem: 23 >> Net income figures for Belgian Ltd. are as follows:2016—$75,000 .............................. 2019—$87,000 2017—$53,000 .............................. 2020—$69,000 2018—$84,000Future income is expected to continue at the average amount of the past five years. The company’s identifiable net assets are appraised at $460,000 on December 31, 2020. The business is to be acquired by Mooney Corp. in ear
Answer Preview: a Fair value of Belgians identifiable net assets 460000 Normal rate of return X07 Normal earnings 32…

, Chapter: 6 -Problem: 5 >> Ritt Ranch & Farm is a distributor of ranch and farm equipment. Its products include small tools, power equipment for trench-digging and fencing, grain dryers, and barn winches. Most products are sold direct via its company Internet site. However, given some of its specialty products, select farm implement stores carry Ritt’s products. Pricing and cost information on three of Ritt’s most popular p
Answer Preview: a January 1 2020 Notes Receivable 48000 Refund Liability 5 X 48000 2400 Sales Revenue 45600 To record sale on account Cost of Goods Sold 30400 EstimatedInventory Returns 40 X 800 X 5 1600 Inventory 40 …

, Chapter: 4 -Problem: 23 >> In 2023, I & T Corporation reported net income of $8.6 million, and declared and paid preferred share dividends of $3.2 million. During 2023, I & T had a weighted average of 900,000 common shares outstanding. Calculate I & T’s 2023 earnings per share.
Answer Preview: 86000003200000 …

, Chapter: 8 -Problem: 3 >> Yarn Imports Corp. is preparing an inventory listing, and is assigning a cost to inventory that arrived on December 29, two days before the end of the year. The following elements of potential cost have been identified:Invoice price; the amount was prepaid when the goods were ordered because the supplier offered a 5% discount for payment up front. Goods were custom-manufactured for Yarn after the
Answer Preview: Cost Invoice price the amount was prepaid when the …

, Chapter: 7 -Problem: 6 >> At the end of 2020, Perez Corporation has accounts receivable of $2.5 million and an allowance for doubtful accounts of $120,000. On January 16, 2021, Perez determined that its $20,000 receivable from Morganfield Ltd. will not be collected, and management has authorized its write off. On January 31, 2021, Perez received notification that the company will be receiving $0.10 for every $1.00 of acco
Answer Preview: a Morganfield Ltd accounts receivable writeoff Allowance for D…

, Chapter: 12 -Problem: 14 >> The president of Plain Corp., Joyce Lima, is thinking of purchasing Balloon Bunch Corporation. She thinks that the offer sounds fair but she wants to consult a professional accountant to be sure. Balloon Bunch Corporation is asking for $85,000 in excess of the fair value of the identifiable net assets. Balloon Bunch’s net income figures for the past five years are as follows:2016—$67,000 .........
Answer Preview: a Balloon Bunch Corporation Calculation of Goodwill and Purchase Price As of December 31 2020 Goodwill 1 Excess Earnings Approach Earnings for past 5 years 350000 Average Earnings 3500005 70000 Normal …

, Chapter: 10 -Problem: 11 >> Wu Inc. operates a retail computer store. To improve its delivery services to customers, the company purchased four new trucks on April 1, 2020. The terms of acquisition for each truck were as follows:1. Truck #1 had a list price of $27,000 and was acquired for a cash payment of $23,900.2. Truck #2 had a list price of $28,000 and was acquired for a down payment of $2,000 cash and a non–interest-be
Answer Preview: a 1 Vehicles 1 23900 Cash 23900 To record purchase of Truck 1 2 Vehicles2 25636 Cash 2000 Notes Payable 23636 To record purchase of Truck 2 Using tabl…

, Chapter: 1 -Problem: 12 >> Given the legalization of cannabis in certain parts of North America, there has been growth in this business sector. CPAB inspected a total of 42 cannabis audit files over 2019–2020 and found significant findings in 22 of those files. Instructions Visit the CPAB website to view its “Auditing in the cannabis sector” report. What were the main findings?
Answer Preview: The four most common significant deficiencies includ…

, Chapter: 9 -Problem: 10 >> O’Callaghan Inc. (OI) is in the highway construction business. OI’s property, plant, and equipment account includes heavy construction equipment. The following transactions relate to the disposal of two of the company’s pieces of equipment.Equipment One—OI decided to dispose of one of its pieces of heavy machinery and replace it with a newer, more efficient model. OI received $125,000 cash on the
Answer Preview: Equipment One Cash 125000 Accumulated depreciation 4400…

, Chapter: 7 -Problem: 2 >> TELUS Corporation is one of Canada’s largest telecommunications companies and provides both products and services. Its shares are traded on the Toronto and New York stock exchanges, and its credit facilities contain certain covenants relating to the amount of debt the company is allowed to hold.The following are selected excerpts from the 2017 audited financial statements:Note 1(o) – Sales of trad
Answer Preview: Overview Since the shares of Telus trade on the stock exchanges the company is constrained by IFRS Credit ratings are important to such a company since they affect its ability to access funds and its …

, Chapter: 6 -Problem: 2 >> Rouge Valley Golf and Health Club (RVGH) is a public company that operates eight clubs in a large city and offers one-year memberships. Membership gives members access to golf and the fitness centre including fitness classes. The members may use any of the eight facilities but must reserve golf time and pay a separate fee before using one of the golf courses. As an incentive, RVGH advertised that
Answer Preview: If RVGH decided it wanted to become a private company and chose to use ASPE there could be differenc…

, Chapter: 12 -Problem: 19 >> You are a financial analyst at McKlean’s Department Store. McKlean’s has been selling clothing at its stores across Canada for the past 25 years. Your team is responsible for measuring potential impairment related to the company’s trade name. Provide at least three examples of the types of big data you could gather to support your test of impairment.
Answer Preview: Types of Big Data that would be useful to gather to support a test of impairment of the compan…

, Chapter: 8 -Problem: 14 >> Pino Inc. is a BC based wine producer. In anticipation of a particularly bounteous grape harvest and a potential problem in obtaining a sufficient volume of shipping crates, Pino entered into a noncancellable agreement with Lumber Products Ltd. to supply 200,000 wooden crates at a price of $24 per crate plus 7% PST and 5% GST.During the current fiscal year, Pino purchased 50,000 crates.Near the en
Answer Preview: Requirement 1 To record the purchase of 50000 crates 24 Crate Inventory includ…

, Chapter: 8 -Problem: 2 >> Findit Gold Inc. (FGI) was created in 2012 and is 25% owned by Findit Mining Corporation (FMC). FGI’s shares trade on the local exchange and its objective is to become a substantial low-cost mineral producer in developing countries. FMC provided substantial financial support to FGI when FGI was in the exploration stage.Over the most recent five-year period, FGI carried its gold bullion inventory a
Answer Preview: Overview Findit Gold Inc FGI is a public company and therefore there is a GAAP constraint IFRS FMC owns 25 and will be interested in the profitability of FGI since it has been financially supporting t…

, Chapter: 5 -Problem: 11 >> Uddin Corp.?s statement of financial position at the end of 2019 included the following items: The following information is available for the 2020 fiscal year: 1. Net income was $391,000. 2. Equipment (cost of $20,000 and accumulated depreciation of $8,000) was sold for $10,000. 3. Depreciation expense was $4,000 on the building and $9,000 on equipment. 4. Amortization expense on a patent was $3
Answer Preview: a Uddin Corp Statement of Financial Position December 31 2020 Assets Current assets 1380500 a FV OCI Investments 20500 Property plant and equipment La…

, Chapter: 9 -Problem: 38 >> The following is the complete mineral exploration, development, and extraction history of Nikko Minerals Inc. Early in 2019, owners invested $50 million to start the company. No further financing was required. The company started explorations in 2019. However, all exploration efforts between 2019 and 2021 were unsuccessful. It was not until early in 2022 that Nikko found its one and only viable mi
Answer Preview: Year 2019 2020 2021 2022 2023 2024 2025 Cash 5000 7000 8000 11000 1 26000 16000 3 ED 50000 50000 500…

, Chapter: 9 -Problem: 29 >> Environmental, social, and governance issues are becoming part of the core values of many companies. With corporate investments geared toward ESG, ESG bonds are increasing in popularity. Explain what an ESG bond is and how it could lead to measurement uncertainty on the financial statements.
Answer Preview: Environmental Social and Governance ESG Bonds generate capital for c…

, Chapter: 7 -Problem: 3 >> The net accounts receivable on the books of GJY Corp. as of 1 January 20X3 are as follows:Accounts receivable .............................................................    $ 281,000Less: Allowance for sales discounts ..................................             6,000Allowance for doubtful accounts ......................................           20,650                                        
Answer Preview: Requirement 1 a Accounts receivable 620000 x 70 434000 Cash 186000 Sales 620000 b Cash 300000 600029…

, Chapter: 5 -Problem: 4 >> Kahnert Corporation’s adjusted trial balance contained the following asset accounts at December 31, 2023: Cash $3,000; Treasury Bills (part of cash equivalents with original maturity of three months) $4,000; Land $60,000; Intangible Assets—Patents $12,500; Accounts Receivable $90,000; Prepaid Insurance $5,200; Inventory $40,000; Allowance for Expected Credit Losses $4,000; and FV-NI Investments $1
Answer Preview: Cash and cash equivalent sand accounts receivable are monetary assets Fair va…

, Chapter: 6 -Problem: 6 >> CCS is a construction company that builds roads in the Northwest Territories (NWT). CCS uses the percentage-of-completion method and measures completion on the basis of kilometres completed. In November 20X9, CCS signed an agreement with the NWT government to build 50 kilometres of new road for a total cost of $40 million. The contract would likely take three years to complete and would start in t
Answer Preview: Revenue for each year is calculated as follows 20X10 1550 x 40 mil…

, Chapter: 4 -Problem: 6 >> Cyan Corporation is a manufacturer of paints and specialty coatings. In March 2020, Beck Inc. filed a lawsuit against Cyan Corporation for alleged patent infringement, claiming $1.1 million in damages. Cyan’s lawyer disputed the claim, but in December 2020, Cyan’s lawyer informed management that Cyan will likely lose the dispute and have to pay between $900,000 and $1.1 million. Dissatisfied with
Answer Preview: a The earnings reported by Cyan appear to be of lower quality Cyans expected value of the loss on th…

, Chapter: 5 -Problem: 18 >> Miller Ltd. engaged in the following cash transactions during 2020:Proceeds from sale of land and building ....................... $176,000 Repurchase of company’s own shares ............................... 25,000 Purchase of land ................................................................... 44,000 Payment of cash dividends ................................................. 58,000 Purchase of
Answer Preview: Proceeds from sale of land an…

, Chapter: 9 -Problem: 28 >> You are a junior investment associate at Number One National Bank, a top-tier Canadian bank. It is your first day on the job and your manager asks you the following question regarding investments: “What are level 3 assets, and how does the availability of data affect which level assets belong to?” Answer your manager’s question.
Answer Preview: Level 1 Assets have fair values that are objectively determined meaning …

, Chapter: 8 -Problem: 7 >> Purple Corp. had a fire sprinkler go off in a warehouse, damaging 800 units of its regular inventory. Information with respect to the units:• Cost, $52 per unit• Regular selling price, $89 per unit• Estimated selling price once repaired, $42 per unit• Estimated repair cost, $18 per unit• Variable selling cost, $4 per unitThe company keeps perpetual inventory records Required:1. Determine the value
Answer Preview: Requirement 1 Estimated sale price 42 Less Estimated cost to r…

, Chapter: 10 -Problem: 12 >> On March 1, 2020, Jessi Corp. acquired a 10-unit residential complex for $1,275,000, paid in cash. An independent appraiser determined that 75% of the total purchase price should be allocated to buildings, with the remainder allocated to land. On the date of acquisition, the building’s estimated useful life was 25 years, with estimated residual value of $325,000. Jessi estimates that straight-line
Answer Preview: a Fair value model March 1 2020 Investment Property 1275000 Cash 1275000 December 31 2020 Investment Property 47000 Gain or Loss in Value of Investment Property 1 47000 1 1322000 1275000 December 31 2…

, Chapter: 12 -Problem: 6 >> Bountiful Industries Ltd. had one patent recorded on its books as at January 1, 2023. This patent had a book value of $365,000 and a remaining useful life of eight years. During 2023, Bountiful incurred research costs of $140,000 and brought a patent infringement suit against a competitor. On December 1, 2023, Bountiful received the good news that its patent was valid and that its competitor could
Answer Preview: The accounting for the research expense of 140000 is very clear in that no …

, Chapter: 9 -Problem: 2 >> Lower Ltd. incurred the following expenditures:Oil and filter change on delivery vehicle ................................................    $ 120Repair to delivery vehicle after accident ................................................    3,500Painting new delivery vehicle immediately after purchase .................       700 Repainting building hallway ..........................................
Answer Preview: Oil and filter change on delivery vehicle 120 Expense Repair t…

, Chapter: 5 -Problem: 13 >> It is February 2021 and Janix Corporation is preparing to issue financial statements for the year ended December 31, 2020. To prepare financial statements and related disclosures that are faithfully representative, Janix is reviewing the following events in 2020 and 2021:1. In August 2020, Maddux Incorporated filed a lawsuit against Janix for alleged patent infringement, claiming $1.8 million in
Answer Preview: 1 Contingency Under IFRS a provision is recognized in income and as a liability if it is probable more likely than not that the confirming future event will occur In this example it is not likely that …

, Chapter: 9 -Problem: 35 >> Petropower Corporation engages in the exploration, development, and production of oil and natural gas. In 2019, the company spent $8,500,000 exploring a new site in northern Alberta. The site was determined to be viable and an additional $4,000,000 was spent on developing the site. At the end of 2019, proven reserves were estimated to be 500,000 barrels-of-oil-equivalent (BOE). In 2020, the compan
Answer Preview: Based on the provided information the journal entries for Petropower Corporation using IFRS are as f…

, Chapter: 4 -Problem: 21 >> Greenwell Corporation produces honey on a farm in Lincoln, Ontario, and distributes it across Canada. After its first year of operations in 2022, it recorded gross revenue of $2,608,731. Greenwell tracked sales by province and territory, as follows: a. Using Excel, generate a map of Canada showing the amount of sales from each province through a gradient-based legend.  b. Using your map from part
Answer Preview: a b A stepbystep solution for this section of the pro…

, Chapter: 9 -Problem: 25 >> Real Estate Company (REC) has a number of apartment buildings that it holds for rent. In addition, it is holding land for capital appreciation. REC will either sell the land if the price is right or use it to build additional rental property. This land has a fair value of $10,000 at the beginning of 20X8. During the year, further acquisitions were made of land totalling $110,000. REC disposed of a
Answer Preview: Requirement 1 The land and buildings would qualify as investment property The land is held for capit…

, Chapter: 4 -Problem: 13 >> (a) Use the information in BE4.12 to prepare a multiple-step income statement for Sierra Corporation, showing expenses by function. (b) Assume the average market price for the common shares is $66. What is Sierra’s price-earnings ratio? Data from BE4.12Sierra Corporation had sales revenue of $5,850,000 and investment revenue of $227,000 for the year ended December 31, 2020. Other items pertaining
Answer Preview: a Sierra Corporation Income Statement For the Year Ended Dec…

, Chapter: 12 -Problem: 4 >> Azure Industries Ltd. acquired two copyrights during 2023. One copyright was on a textbook that was developed internally at a cost of $36,000. This textbook is estimated to have a useful life of three years from July 1, 2023, the date it was published. The second copyright is for a history research textbook and was purchased from University Press on October 1, 2023, for $54,000. This textbook seem
Answer Preview: Copyright No 1 for 36000 should be capitalized Its carrying value …

, Chapter: 6 -Problem: 8 >> SorCo. Inc. has just entered into a sale agreement with a customer. The contract is for $1,100,000. However, the payments will be made as follows: 1 August 20X1 on date of delivery $500,000; 1 August 20X2 $300,000 and 1 August 20X3 $300,000. SorCo has estimated that the interest rate required for this customer is 7%. Required:Prepare the journal entry required to record the sale on 1 August 20X1 a
Answer Preview: With the delayed payments the contract consideration is the present value of the future cash flows …

, Chapter: 12 -Problem: 9 >> Use the data provided in P12.8. Assume instead that Meridan Golf and Sports is a public company. The relevant information for the impairment test on December 31, 2022, is as follows: Instructions Provide the calculations for the impairment test and any associated journal entry. P12.8 Meridan Golf and Sports was formed on July 1, 2020, when Steve Powerdriver purchased Old Master Golf Corporation
Answer Preview: Carrying amount Recoverable Amount higher of VIU or FVSC Impairment T…

, Chapter: 9 -Problem: 8 >> Presented below is information taken from a bond investment amortization schedule, with related fair values provided. These bonds are classified as FV-OCI. Instructions a. Were the bonds purchased at a discount or at a premium? b. Prepare the adjusting entry to record the bonds at fair value at December 31, 2020. The fair value adjustment account has a debit balance of $1,000 prior to adjustment
Answer Preview: a The bonds were purchased at a discount That is they were purchased at less tha…

, Chapter: 9 -Problem: 22 >> Ramirez Company has an investment in 6%, 10-year bonds of Soto Company. The investment was originally purchased at par for $100 in 2022, and it is accounted for at amortized cost. Early in 2023, Ramirez recorded an impairment on the Soto investment due to Soto’s financial distress. At that time, the present value of the cash flows discounted using the original effective interest rate was $90, and
Answer Preview: 2023 2024 Loss on Impairment Bond Investment …

, Chapter: 7 -Problem: 15 >> South Company, a public company, sells large construction equipment. On 1 January 20X5, the company sold North Company a machine at a quoted price of $120,000. South collected $40,000 cash and received a two year note payable for the balance. Required: 1. Give South’s required entries for the two years, assuming an interest bearing note, face value $80,000. (8% interest, simple interest, payable e
Answer Preview: Requirement 1 1 January 20x5 Cash 40000 Note receivable 80000 Sales revenue 120000 31 December 20x5 …

, Chapter: 6 -Problem: 20 >> Geraths Windows manufactures and sells custom storm windows for three-season porches. Geraths also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be performed by other vendors. Geraths enters into the following non-cancellable contract on July 1, 2020, with a local homeowner. The customer purchases windows for a
Answer Preview: Steps Analysis Step 1 Identify the contract with customers Both parties have agreed to enter into a …

, Chapter: 5 -Problem: 3 >> The audited annual financial statements of Maple Leaf Foods Inc. for the year ended December 31, 2017, can be found on the company’s website or from SEDAR (www.sedar.com). Instructionsa. Calculate the liquidity and coverage (solvency) ratios identified in Appendix 5A for both years that are presented in the financial statements.b. Comment on the company’s financial flexibility.c. Review the cash
Answer Preview: a The following are the liquidity and coverage ratios for Maple Leaf Foods Inc MLF for the fiscal years ending December 31 2017 and 2016 Note All figures are in thousands of Canadian dollars 2017 2016 …

, Chapter: 12 -Problem: 21 >> On September 1, 2023, Pipeline Corporation acquired Tunneling Limited for a cash payment of $954,000. At the time of purchase, Tunneling’s statement of financial position showed assets of $780,000, liabilities of $420,000, and owners’ equity of $360,000. The fair value of Tunneling’s assets is estimated to be $1,140,000. Calculate the amount of goodwill acquired by Pipeline.
Answer Preview: Fair value of consideration transfe…

, Chapter: 8 -Problem: 1 >> Love Your Pet, Inc. (LPI) is a pet food company located in rural Quebec. LPI has been operating for years as a distributor of pet food but in the last year has begun to manufacture raw dog food. In the current year, LPI has been certified by the Canadian Association of Raw Pet Food Manufacturers, (CARPFM). This organization believes that companion animals benefit greatly from a diet more closely r
Answer Preview: Overview LPI is preparing IFRScompliant financial statements for the first time and will be audited for the first time The company has a line of credit that is limited to 70 of accounts receivable and …

, Chapter: 10 -Problem: 18 >> Valued Assets Inc., a publicly listed company, has a building with an initial cost of $400,000. At December 31, 2020, the date of revaluation, accumulated depreciation amounted to $110,000. The fair value of the building, by comparing it with transactions involving similar assets, is assessed to be $330,000. Prepare the journal entries to revalue the plant under the revaluation model using(a) The
Answer Preview: a Accumulated Depreciation Buildings 110000 Buildings 110000 …

, Chapter: 8 -Problem: 25 >> On April 1, 2021, STV Company acquired $30,000 of furniture. The furniture is expected to last 10 years with no residual value. STV uses the double-declining-balance method and fractional year depreciation based on the number of months.  Required:What would be the depreciation expense for the year ended December 31, 2021?
Answer Preview: To calculate the depreciation expense for the year ended December 31 2021 we need to use the doubled…

, Chapter: 6 -Problem: 40 >> Assume the facts given in BE6.39 for Martin. Prepare the December 31, 2024 year-end journal entry to record any loss from the contract, assuming Martin uses the completed-contract method. Data from in BE6.39Inexperienced construction company Martin Corp. signed a risky non-cancellable contract to build a research facility at a fixed contract amount of $2 million. The work began in early 2023 and M
Answer Preview: December 31 2024 Loss fr…

, Chapter: 7 -Problem: 17 >> MacWilliams Ltd. sold a $90,000 piece of machinery to a customer on 1 January 20X6, and took back a two year, 2% note receivable. The customer has to pay interest every 31 December, but the $90,000 principal is due only after two years. Market interest rates are 6%. Required: 1. What is the present value of the note receivable?2. Record the sale/loan on 1 January 20X6, the interest each 31 Decembe
Answer Preview: Requirement 1 Present value Maturity value 90000 PF 6 2 80100 Interest 1800 PA 62 3300 83400 Re…

, Chapter: 6 -Problem: 3 >> Airbus SE, previously known as European Aeronautic Defence and Space Company or EADS NV, is incorporated in the Netherlands and its shares are traded in France, Germany, and Spain. Access the financial statements of Airbus SE for its year ended December 31, 2017, from the company’s website (www.airbus.com/investors/financial-results-and-annual-reports.html). Instructions Answer the following ques
Answer Preview: a As identified in Note 9 to its financial statements Airbus SE is in the business of manufacturing commercial aircraft civil and military helicopters …

, Chapter: 9 -Problem: 20 >> Axo Mirth Company paid $24 million to purchase a drug patent on April 1, 2019. At the date of purchase, the patent remained valid for another 12 years. In 2021, the company spent $4 million to successfully defend the patent, with the case closed on September 30, 2021. The company has a December 31 year-end. Required:Taking account of partial years, compute the amount of patent amortization for 201
Answer Preview: To calculate the amortization of the patent over its useful life we need to determine the total cost of the patent and its useful life We can then use …

, Chapter: 4 -Problem: 15 >> Sierra Corporation had sales revenue of $5,850,000 and investment revenue of $227,000 for the year ended December 31, 2023. Other items pertaining to 2023 were as follows: Sierra had 100,000 common shares outstanding throughout the year. Prepare a single-step income statement showing expenses by nature. Include calculation of EPS.
Answer Preview: Revenues Sierra Corporation Income Statement For the Year Ended December 31 2023 Sales revenue I…

, Chapter: 6 -Problem: 25 >> Pewter Publishing Co. (PPC) prepares and publishes a monthly newsletter for an industry in which potential circulation is limited. Because information provided by the newsletter is available only piecemeal from other sources and because no advertising is carried, the subscription price for the newsletter is relatively high. To increase circulation, PPC recently purchased a contact list from the in
Answer Preview: The 20X0 subscription campaign yielded a total of 706300 294100 224700 187500 in new subscriptions The revenue from these subscriptions should be reco…

, Chapter: 6 -Problem: 10 >> Organic Growth Company is testing a number of new agricultural seeds that it has recently harvested. To stimulate interest, it has decided to grant five of its largest customers the unconditional right to return these products if not fully satisfied. The right of return extends for four months. Organic Growth sells these seeds on account for $1.5 million (cost $800,000) on April 2, 2020. Customers
Answer Preview: a April 2 2020 Accounts Receivable 1500000 Refund Liability 1500000 X 20 300000 Sales Revenue 120000…

, Chapter: 4 -Problem: 17 >> The shareholders’ equity section of Cadmium Corporation as at December 31, 2020, follows:8% cumulative preferred shares, 100,000 shares authorized, 80,000 shares outstanding ...................................... $ 4,500,000 Common shares, 10 million shares authorized and issued ........................................................................................ 10,000,000 Contributed surplus
Answer Preview: Calculation of net income 2020 net income …

, Chapter: 8 -Problem: 14 >> Acorn Mines began developing an open pit copper and zinc mine in northern Ontario in April of 2019. As part of the regulatory approvals to develop and to extract minerals from the site, the company committed to restore the mine site. Given the nature of open pit mining, it is not possible to fully restore the site to its original state. Nevertheless, the commitment requires the company to replant
Answer Preview: a The present value of the future site restoration costs as of the spring of 2019 can be computed using the formula PV FV1 rn where PV is the present …

, Chapter: 4 -Problem: 12 >> Two accountants, Yuan Tsui and Sergio Aragon, are arguing about the merits of presenting an income statement in the multiple-step versus the single-step format. The discussion involves the following 2023 information for P. Bride Company (in thousands): Common shares outstanding for 2023 total 30,550. Income tax for the year was $9,070. Instructions  a. Prepare an income statement for the year end
Answer Preview: a b SingleStep Format c An investor interested in information about operating vs nonoperating items …

, Chapter: 7 -Problem: 9 >> Accounts receivable for Smith Ltd. were reported on the statement of financial position prepared at the end of 20X8, as follows:Additional information: The company sells goods on account. At the end of the year, accounts receivable are aged and the following percentages are applied in arriving at an estimate of the charge for doubtful accounts.Estimated lossCurrent accounts .......................
Answer Preview: Requirement 1 1 Allowance for doubtful accounts2150 Account…

, Chapter: 7 -Problem: 23 >> Eli Corp. has just received its August 31, 2020 bank statement, which is summarized as follows: The general ledger Cash account contained the following entries for the month of August: Deposits in transit at August 31 are $3,800, and cheques outstanding at August 31 total $1,050. Cash currently on hand at August 31 is $310 and there were postdated cheques from customers (for September 1) in th
Answer Preview: a Eli Corp Bank Reconciliation August 31 2020 Provincial Bank of Manitoba B…

, Chapter: 11 -Problem: 25 >> Jamoka Corporation is a public company that manufactures farm implements, such as tractors, combines, and wagons. Jamoka uses the revaluation model per IAS 16, and records asset revaluations using the elimination method. (This means the balance in the accumulated depreciation account is eliminated against the asset account just prior to revaluation of the asset to fair value.) A piece of manufactu
Answer Preview: a Situation 1 1 December 31 2020 Depreciation Expense 18000 Accumulated Depreciation Equipment 18000 100000 10000 5 years The equipment is reported on the SFP at a carrying amount of 82000 100000 less …

, Chapter: 5 -Problem: 4 >> Bruno Corp. has decided to expand its operations. The bookkeeper recently completed the following statement of financial position in order to obtain additional funds for expansion:Bruno Corp.Statement of Financial PositionFor the Year Ended December 31, 2020Current assets Cash (net of bank overdraft of $30,000) ................................................. $260,000 Accounts receivable (net) ..
Answer Preview:

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9 Reviews for Intermediate Accounting Volume 1 Textbook Questions And Answers