Questions from Accounting Principles


Q: In preparing the annual financial statements for Jade Oil Inc., the

In preparing the annual financial statements for Jade Oil Inc., the correct manner of reporting the following items was not clear to the company’s employees. Explain where each of the following items...

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Q: During 2020, GlenTel Inc. sold its interest in a chain

During 2020, GlenTel Inc. sold its interest in a chain of wholesale outlets. This sale took the company out of the wholesaling business completely. The company still operates its retail outlets. Follo...

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Q: Use the data for GlenTel Inc. in Exercise 13-16

Use the data for GlenTel Inc. in Exercise 13-16 to present a multiple-step income statement for 2020. You need not complete the earnings per share calculations. Data from Exercise 13-16: During 2020,...

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Q: Ice Industries Inc. showed the following equity account balances at December

Ice Industries Inc. showed the following equity account balances at December 31, 2019: Common shares, unlimited shares authorized, 70,000 shares issued and outstanding=$816,000 Retained earnings = 112...

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Q: Holt Developments Ltd. put an asset in service on January 1

Holt Developments Ltd. put an asset in service on January 1, 2018. Its cost was $270,000, its predicted service life was six years, and its expected residual value was $27,000. The company decided to...

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Q: Pacifica Papers Inc. needed to conserve cash, so instead of

Pacifica Papers Inc. needed to conserve cash, so instead of a cash dividend the board of directors declared a 15% common share dividend on June 30, 2020, distributable on July 15, 2020. Because perfor...

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Q: Selected information regarding the accounts of Infinity Minerals Corp. follows:

Selected information regarding the accounts of Infinity Minerals Corp. follows: Prepare a statement of changes in equity for the year ended December 31, 2020, assuming 7,000 common shares were issued...

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Q: Convertible preferred shares Jager Metal Corp. Equity Section of

Convertible preferred shares Jager Metal Corp. Equity Section of the Balance Sheet November 30, 2020 Required Refer to the equity section above. Assume that the preferred shares are convertible into c...

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Q: Bandara Gold Inc.’s equity section on the October 31,

Bandara Gold Inc.’s equity section on the October 31, 2020, balance sheet showed the following information: Common shares, unlimited shares authorized, 600,000 shares issued and outstanding = $1,800,0...

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Q: On March 1, 2020, VisionTech Inc.’s board of

On March 1, 2020, VisionTech Inc.’s board of directors declared a 5% share dividend when the market price per share was $10.00. On November 15, 2020, the board of directors declared a 4:1 share split....

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