Q: On January 1, 2020, Ginseng Inc. entered into a
On January 1, 2020, Ginseng Inc. entered into a forward contract to purchase U.S. $6,000 for $6,336 Canadian in 30 days. On January 15, the fair value of the contract was $40 (reflecting the present v...
See AnswerQ: Maple Leaf Foods Inc. is a Canadian company that produces food
Maple Leaf Foods Inc. is a Canadian company that produces food products such as prepared meats, ready-to cook and ready-to-serve meals, and fresh pork and poultry. While most of Maple Leaf Foods' busi...
See AnswerQ: Refer to BE16.4. Assume the same facts except that
Refer to BE16.4. Assume the same facts except that the forward contract is a futures contract that trades on the Futures Exchange. Ginseng Inc. was required to deposit $30 with the stockbroker as a ma...
See AnswerQ: On January 1, 2020, Wolfgang Ltd. paid $1
On January 1, 2020, Wolfgang Ltd. paid $1,000 for the option to buy 5,000 of its common shares for $25 each. The contract stipulates that it may be settled only by exercising the option and buying the...
See AnswerQ: Higgins Inc. has 52,000 common shares outstanding. The
Higgins Inc. has 52,000 common shares outstanding. The shares have an average cost of $21 per share. On July 1, 2020, Higgins reacquired 800 shares at $56 per share and retired them. Assume no contrib...
See AnswerQ: Spencer Limited has 50,000 common shares outstanding, with an
Spencer Limited has 50,000 common shares outstanding, with an average issue price per share of $8. On August 1, 2020, the company reacquired and cancelled 600 shares at $40 per share. There was contri...
See AnswerQ: Abourawes Services Inc. issued 1,000 $2 convertible preferred
Abourawes Services Inc. issued 1,000 $2 convertible preferred shares at $75 and 5,000 common shares at $25 each in 2019. Each preferred share is convertible into three common shares. On March 15, 2020...
See AnswerQ: Bantec Corporation had 500,000 common shares outstanding on January 1
Bantec Corporation had 500,000 common shares outstanding on January 1, 2020. On May 1, Bantec issued 50,000 shares. a. Calculate the weighted average number of shares outstanding for the year ended D...
See AnswerQ: Ethan Corporation had 100,000 common shares outstanding on December 31
Ethan Corporation had 100,000 common shares outstanding on December 31, 2019. During 2020, the company issued 12,000 shares on March 1, retired 5,000 shares on July 1, issued a 20% stock dividend on O...
See AnswerQ: Describe the three-step process followed in arriving at diluted earnings
Describe the three-step process followed in arriving at diluted earnings per share when multiple potentially dilutive financial instruments are present.
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