Questions from Intermediate Accounting

Q: Boyko Company received an order from Lister Inc. on May 15

Boyko Company received an order from Lister Inc. on May 15, 2014, valued at 52,200. Boyko shipped the goods to Lister on May 31, 2014, with terms f.o.b. shipping point, and credit terms 2/10, n/30. As...

Q: Logo Limited follows ASPE. It manufactures sweatshirts for sale to athletic

Logo Limited follows ASPE. It manufactures sweatshirts for sale to athletic-wear retailers. The following summary information was available for Logo for the year ended December 31, 2013: Part 1 1. Tot...

Q: In 2014, Ibran Corp. required additional cash for its business

In 2014, Ibran Corp. required additional cash for its business. Management decided to use accounts receivable to raise the additional cash and has asked you to determine the income statement effects o...

Q: The Cormier Corporation sells office equipment and supplies to many organizations in

The Cormier Corporation sells office equipment and supplies to many organizations in the city and surrounding area on contract terms of 2/10, n/30. In the past, over 75% of the credit customers have t...

Q: The Patchwork Corporation manufactures sweaters for sale to athletic-wear retailers

The Patchwork Corporation manufactures sweaters for sale to athletic-wear retailers. The following information was available on Patchwork for the years ended December 31, 2013, and 2014: During 2014,...

Q: On October 1, 2014, Alpha Inc. assigns $2

On October 1, 2014, Alpha Inc. assigns $2 million of its accounts receivable to Alberta Provincial Bank as collateral for a $1.6-million loan evidenced by a note. The bank's charges are as follows: a...

Q: The following information is for the inventory of mini kettles at Funnell

The following information is for the inventory of mini kettles at Funnell Company Limited for the month of May: Instructions (a) Assuming that the periodic inventory method is used, calculate the inv...

Q: Landstalker Enterprises sold $750,000 of accounts receivable to Leander

Landstalker Enterprises sold $750,000 of accounts receivable to Leander Factors, Inc. on a without recourse basis under IFRS, as the risks and rewards have been transferred to Leander. The transaction...

Q: Chessman Corporation factors $600,000 of accounts receivable with Liquidity

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 trans...

Q: Topaz Inc. has accounts receivable terms of 2/10,

Topaz Inc. has accounts receivable terms of 2/10, n/30. In the past, 50% of Topaz's customers have taken advantage of the discount and paid within 10 days of the invoice date, and the remaining 50% of...