Questions from Intermediate Accounting

Q: Four independent situations follow: 1. On March 1,

Four independent situations follow: 1. On March 1, 2020, Wilkie Inc. issued $4 million of 9% bonds at 103 plus accrued interest. The bonds are dated January 1, 2020, and pay interest semi-annually on...

Q: Refer to P14.11 and Taylor Corp. Instructions

Refer to P14.11 and Taylor Corp. Instructions Repeat the instructions of P14.11 assuming that Taylor Corp. uses the effective interest method. Provide an effective interest table for the bonds for...

Q: To increase the sales of its Sugar Kids breakfast cereal, KW

To increase the sales of its Sugar Kids breakfast cereal, KW Foods Limited (KW) places one coupon in each cereal box. Five coupons are redeemable for a premium consisting of a child's hand puppet. In...

Q: Manitoba Deck System Corporation (MDSC) is a public company whose

Manitoba Deck System Corporation (MDSC) is a public company whose shares are actively traded on the Toronto Stock Exchange. The following transactions occurred in 2020: Instructions a. Prepare the g...

Q: On January 1, 2020, Batonica Limited issued a $1

On January 1, 2020, Batonica Limited issued a $1.2-million, five-year, zero-interest-bearing note to Northern Savings Bank. The note was issued to yield 8% annual interest. Unfortunately, during 2020...

Q: Mullen Music Limited (MML) carries a wide variety of musical

Mullen Music Limited (MML) carries a wide variety of musical instruments, sound reproduction equipment, recorded music, and sheet music. MML uses two sales promotion techniques—warra...

Q: On June 1, 2020, MacDougall Corporation approached Silverman Corporation about

On June 1, 2020, MacDougall Corporation approached Silverman Corporation about buying a parcel of undeveloped land. Silverman was asking $240,000 for the land and MacDougall saw that there was some fl...

Q: Healy Corp., a leader in the commercial cleaning industry, acquired

Healy Corp., a leader in the commercial cleaning industry, acquired and installed, at a total cost of $110,000 plus 15% HST, three underground tanks to store hazardous liquid solutions needed in the c...

Q: Selected transactions on the books of Pfaff Corporation follow: /

Selected transactions on the books of Pfaff Corporation follow: Instructions a. Assume that Pfaff follows ASPE. Prepare the journal entries for the transactions above. Round to the nearest dollar....

Q: On December 31, 2020, Faital Limited acquired a machine from

On December 31, 2020, Faital Limited acquired a machine from Plato Corporation by issuing a $600,000, non–interest-bearing note that is payable in full on December 31, 2024. The company's credit ratin...