Questions from Advanced Accounting

Q: Moose Utilities Ltd. (MUL) borrowed $40,000

Moose Utilities Ltd. (MUL) borrowed $40,000,000 in U.S. funds on January 1, Year 1, at an annual interest rate of 12%. The loan is due on December 31, Year 4, and interest is paid annually on December...

Q: Lamont Company is a Canadian company that produces electronic switches for the

Lamont Company is a Canadian company that produces electronic switches for the telecommunications industry. Lamont regularly imports component parts from Sousa Ltd., a supplier located in Mexico, and...

Q: On January 1, Year 5, Ornate Company Ltd. purchased

On January 1, Year 5, Ornate Company Ltd. purchased US$2,200,000 of the bonds of the Gem Corporation. The bonds were trading at par on this date, pay interest at 12% each December 31, and mature on De...

Q: On October 1, Year 6, Versatile Company contracted to sell

On October 1, Year 6, Versatile Company contracted to sell merchandise to a customer in Switzerland at a selling price of SF400,000. The contract called for the merchandise to be delivered to the cust...

Q: Hamilton Importing Corp. (HIC) imports goods from countries around

Hamilton Importing Corp. (HIC) imports goods from countries around the world for sale in Canada. On December 1, Year 3, HIC purchased 11,300 watches from a foreign wholesaler for DM613,000 when the sp...

Q: The equity method records dividends as a reduction in the investment account

The equity method records dividends as a reduction in the investment account. Explain why.

Q: On August 1, Year 3, Carleton Ltd. ordered machinery

On August 1, Year 3, Carleton Ltd. ordered machinery from a supplier in Hong Kong for HK$500,000. The machinery was delivered on October 1, Year 3, with terms requiring payment in full by December 31,...

Q: EnDur Corp (EDC) is a Canadian company that exports computer

EnDur Corp (EDC) is a Canadian company that exports computer software. On February l, Year 2, EDC contracted to sell software to a customer in Denmark at a selling price of 600,000 Danish krona (DK) w...

Q: On December 31, Year 1, Precision Manufacturing Inc. (

On December 31, Year 1, Precision Manufacturing Inc. (PMI) of Edmonton purchased 100% of the outstanding ordinary shares of Sandora Corp. of Flint, Michigan. Sandora's comparative statement of financi...

Q: In Year 1, Victoria Textiles Limited decided that its Asian operations

In Year 1, Victoria Textiles Limited decided that its Asian operations had expanded such that an Asian office should be established. The office would be involved in selling Victoria's current product...