Questions from Intermediate Accounting

Q: Sport Pro Magazine sold 12,000 annual subscriptions on August 1

Sport Pro Magazine sold 12,000 annual subscriptions on August 1, 2020, for $18 each. Prepare Sport Pro's August 1, 2020 journal entry and the December 31, 2020 annual adjusting entry, assuming the mag...

Q: Jupiter Corp. provides at no extra charge a two-year

Jupiter Corp. provides at no extra charge a two-year warranty with one of its products, which was first sold in 2020. In that year, Jupiter sold products for $2.5 million and spent $68,000 servicing w...

Q: Upland Limited borrowed $40,000 on November 1, 2020

Upland Limited borrowed $40,000 on November 1, 2020, by signing a $40,000, three-month, 9% note. Prepare Upland's November 1, 2020 entry; the December 31, 2020 annual adjusting entry; and the February...

Q: Refer to the information for Upland Limited in BE13.4.

Refer to the information for Upland Limited in BE13.4. Assume that Upland uses reversing entries. Prepare the 2021 journal entry(ies) for Upland. From BE13.4: Upland Limited borrowed $40,000 on Novem...

Q: Takemoto Inc. borrowed $60,000 on November 1,

Takemoto Inc. borrowed $60,000 on November 1, 2020, by signing a $61,350, three-month, zero-interest-bearing note. a. Using a financial calculator or Excel, calculate the effective interest charged o...

Q: Grenier Limited issued $300,000 of 10% bonds on

Grenier Limited issued $300,000 of 10% bonds on January 1, 2020. The bonds are due on January 1, 2025, with interest payable each July 1 and January 1. The bonds are issued at face value. Grenier uses...

Q: Assume that the bonds in BE14.11 were issued at 98

Assume that the bonds in BE14.11 were issued at 98. Assume also that Grenier Limited follows ASPE and records the amortization using the straight-line method. Prepare the journal entries related to th...

Q: Travel In Style Limited issued $1,000,000 of

Travel In Style Limited issued $1,000,000 of 9% bonds on September 1, 2020, for $1,058,671. The term of the bonds is September 1, 2020, to September 1, 2028, with interest payable quarterly each Decem...

Q: IFRS allows per share amounts to be reported on items other than

IFRS allows per share amounts to be reported on items other than earnings. Instructions a. Adopt the role of the ethical accountant and write a short essay on the pros and cons of allowing companie...

Q: Hanson Incorporated issued $1 million of 7%, 10-year

Hanson Incorporated issued $1 million of 7%, 10-year bonds on July 1, 2019, at face value. Interest is payable each December 31. The company has chosen to apply the fair value option in accounting for...