Questions from Intermediate Accounting

Q: Cella Corporation's statement of financial position shows property, plant, and

Cella Corporation's statement of financial position shows property, plant, and equipment of $100,000. The notes to its financial statements state that the amount is represented by a cost of $600,000,...

Q: On October 1, 2014, Ocean Airways Ltd. purchased a

On October 1, 2014, Ocean Airways Ltd. purchased a new commercial aircraft for a total cost of $100 million. Included in the total cost are the aircraft's two engines, at a cost of510 million each, an...

Q: Fran Song looked at the consolidated financial statements of Vixen Manufacturing Limited

Fran Song looked at the consolidated financial statements of Vixen Manufacturing Limited and shook her head. "I was asked to look at the accounting for Vixen's investments," she said, "but I can't fin...

Q: Chong Corp. purchased a machine on July 1, 2014,

Chong Corp. purchased a machine on July 1, 2014, for $30,000. Chong paid $200 in title fees and a legal fee of $100 related to the machine. In addition, Chong paid $500 of shipping charges for deliver...

Q: Gilles Corp. purchased a piece of equipment on February 1,

Gilles Corp. purchased a piece of equipment on February 1, 2014, for $100,000. The equipment has an estimated useful life of eight years with a residual value of $25,000, and an estimated physical lif...

Q: Odyssey Ltd. purchased machinery on January 1, 2014, for

Odyssey Ltd. purchased machinery on January 1, 2014, for $60,000. The machinery is estimated to have a residual value of $6,000 after a useful life of eight years. (a) Calculate the 2014 depreciation...

Q: Use the information for Odyssey Ltd. in BE11-5.

Use the information for Odyssey Ltd. in BE11-5. In exercise Odyssey Ltd. purchased machinery on January 1, 2014, for $60,000. The machinery is estimated to have a residual value of $6,000 after a us...

Q: Jupiter Wells Corp. purchased machinery for $315,000 on

Jupiter Wells Corp. purchased machinery for $315,000 on May 1, 2013. It is estimated that it will have a useful life of 10 years, residual value of $15,000, production of 240,000 units, and 25,000 wor...

Q: Consider the following independent situations for Kwok Corporation. Kwok applies ASPE

Consider the following independent situations for Kwok Corporation. Kwok applies ASPE. Situation 1: Kwok purchased equipment in 2007 for $120,000 and estimated a $12,000 residual value at the end of t...

Q: On September 1, Louisa Ltd. purchased $80,000

On September 1, Louisa Ltd. purchased $80,000 of five-year, 9% bonds for $74,086, resulting in an effective (yield) rate of 11%. The bonds pay interest each March I and September I. Louisa Ltd. applie...