Questions from Intermediate Accounting


Q: Tang Corporation, which follows IFRS and chooses to classify dividends paid

Tang Corporation, which follows IFRS and chooses to classify dividends paid as financing activities and interest paid as operating activities on the statement of cash flows, had the following activiti...

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Q: Watson Corporation, which uses IFRS, is using the indirect method

Watson Corporation, which uses IFRS, is using the indirect method to prepare its 2020 statement of cash flows and chooses to classify dividends paid as financing activities and interest paid as operat...

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Q: Chorus Aviation Inc. is a Canadian aviation holding company that provides

Chorus Aviation Inc. is a Canadian aviation holding company that provides, through Jazz Aviation LP, a “significant part of Air Canada’s domestic and transborder network.” Chorus indicates in Note 1 t...

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Q: In 2020, Abbotsford Inc. issued 1,000 common shares

In 2020, Abbotsford Inc. issued 1,000 common shares for land with a fair market value of $149,000. a. Prepare Abbotsford's journal entry to record the transaction. b. Indicate the effect that the tr...

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Q: Wong Textiles Ltd. entered into a lease obligation during 2020 to

Wong Textiles Ltd. entered into a lease obligation during 2020 to acquire a cutting machine. The amount recorded to the Right-of-Use Asset account and the corresponding Lease Liability account was $85...

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Q: Strong House Inc. had the following condensed statement of financial position

Strong House Inc. had the following condensed statement of financial position at December 31, 2019: Strong House Inc. follows IFRS and chooses to classify dividends paid as financing activities and i...

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Q: The following are selected statement of financial position accounts of Pavicevic Ltd

The following are selected statement of financial position accounts of Pavicevic Ltd. at December 31, 2019 and 2020, and the increases or decreases in each account from 2019 to 2020. Also presented is...

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Q: Angus Farms Ltd., which follows ASPE, had the following transactions

Angus Farms Ltd., which follows ASPE, had the following transactions during the fiscal year ended December 31, 2020. 1. On May 1, a used tractor was sold at auction. The information concerning this t...

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Q: The following selected account balances were taken from the financial statements of

The following selected account balances were taken from the financial statements of Blumberg Inc. concerning its long-term investment in shares of Black Inc. over which it has had significant influenc...

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Q: Maffin Corp. owns 75% of Grey Inc. Both companies

Maffin Corp. owns 75% of Grey Inc. Both companies are in the mining industry. During 2020, Maffin Corp. purchased a building from Grey Inc. for $1,000. The building's original cost is $25,000 and its...

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