Questions from Intermediate Accounting

Q: Mackenzie Construction Services Ltd. has entered into a contract to construct

Mackenzie Construction Services Ltd. has entered into a contract to construct an office building for Designers Corporation. Mackenzie prepares financial statements in accordance with IFRS. Explain how...

Q: On May 3, 2014, Brown Motors Limited consigned 80 motorcycles

On May 3, 2014, Brown Motors Limited consigned 80 motorcycles, costing $25,000 each, to Mississauga Motors Inc. The total cost of shipping the motorcycles was $5,800 and was paid by Brown Motors. On D...

Q: Dave Scotland Inc. (DSI) sold inventory to a new

Dave Scotland Inc. (DSI) sold inventory to a new customer, Jamali Ltd., on December 20, 2014. Jamali was given a significant discount to entice it to switch from its regular supplier. Jamali asked DSI...

Q: Jupiter Inc. was established in 1985 by Joyce Fukomoto and initially

Jupiter Inc. was established in 1985 by Joyce Fukomoto and initially operated under contracts to build highly energy-efficient, customized homes. In me 1990s, Joyce's two daughters joined the firm and...

Q: On March 1, 2014, Wilma Limited signed a contract to

On March 1, 2014, Wilma Limited signed a contract to build a factory for Slate Construction Manufacturing Inc. for a total contract price of $9.4 million. The building was completed by October 31, 201...

Q: You have been engaged by Ashely Corp. to advise it on

You have been engaged by Ashely Corp. to advise it on the proper accounting for a series of long-term contracts. Ashely began doing business on January 1, 2014, and its construction activities for the...

Q: Soorya Enterprises sells a corporate monitoring system that includes the hardware,

Soorya Enterprises sells a corporate monitoring system that includes the hardware, software, and monitoring services and annual maintenance for three years for a fixed price of $750,000. The new contr...

Q: Daisy Construction Ltd. has entered into a contract beginning January 1

Daisy Construction Ltd. has entered into a contract beginning January 1, 2014, to build a parking complex. It has estimated that the complex will cost $8 million and will take three years to construct...

Q: Sunman Inc. is a discount retailer with 1,000 stores

Sunman Inc. is a discount retailer with 1,000 stores located across North America. Sunman purchases bulk quantities of groceries and household goods, and then sells the goods directly to retail custom...

Q: Use the information in BE4-9 to prepare a multiple-

Use the information in BE4-9 to prepare a multiple-step income statement for Taylor Corporation, showing expenses by function. Taylor Corporation had net sales revenue of 52,780,000 and investment rev...