Questions from Intermediate Accounting

Q: Gambit Corporation purchased a new plant asset on April 1, 2014

Gambit Corporation purchased a new plant asset on April 1, 2014, at a cost of $769,000. It was estimated to have a useful life of 20 years and a residual value of $300,000, and a physical life of 30 y...

Q: Comco Tool Corp. records depreciation annually at the end of the

Comco Tool Corp. records depreciation annually at the end of the year. Its policy is to take a full year's depreciation on all assets that are used throughout the year and depreciation for half a year...

Q: Abdul Corporation purchased 400 common shares of Sigma Inc. for trading

Abdul Corporation purchased 400 common shares of Sigma Inc. for trading purposes for $13,200 on September 8 and accounted for the investment under ASPE at FV-NI. In December, Sigma declared and paid a...

Q: On January 1, 2012, Dayan Corporation, a small manufacturer

On January 1, 2012, Dayan Corporation, a small manufacturer of machine tools, acquired new industrial equipment for $1.1 million. The new equipment had a useful life of five years and the residual val...

Q: Refer to the annual financial statements of Shoppers Drug Mart for its

Refer to the annual financial statements of Shoppers Drug Mart for its fiscal year ended December 31, 2011, found in Appendix 5B. Instructions (a) Review Shoppers Drug Mart's balance sheet. Identify...

Q: Soon after December 31,2014, the auditor of Morino Manufacturing Corp

Soon after December 31,2014, the auditor of Morino Manufacturing Corp. asked the company to prepare a depreciation schedule for semi trucks that showed the additions, retirements, depreciation, and ot...

Q: Linda Monkland established Monkland Ltd. in mid-2013 as the

Linda Monkland established Monkland Ltd. in mid-2013 as the sole shareholder. The accounts on June 30, 2014, the company's year end, just prior to preparing the required adjusting entries, were as fol...

Q: On April30, 2014, Oceanarium Corporation ordered a new passenger ship

On April30, 2014, Oceanarium Corporation ordered a new passenger ship, which was delivered to the designated cruise port and available for use as of June 30, 2014. Overall, the cost of the ship was $9...

Q: Khamsah Mining Ltd. is a small private company that purchased a

Khamsah Mining Ltd. is a small private company that purchased a tract of land for $720,000. After incurring exploration costs of $83,000, the company estimated that the tract will yield 120,000 tonnes...

Q: Hubbub Company Ltd. acquired equipment at the beginning of Year 1

Hubbub Company Ltd. acquired equipment at the beginning of Year 1. The asset has an estimated useful life of five years. An employee has prepared depreciation schedules for this asset using two differ...