Questions from Intermediate Accounting

Q: Emil Family Importers sold goods to Acme Decorators for $20,

Emil Family Importers sold goods to Acme Decorators for $20,000 on November 1, 2017, accepting Acme’s $20,000, six-month, 6% note. (a) Prepare Emil’s November 1 entry, December 31 annual adjusting ent...

Q: Lin Du Corp. lent $30,053 to Prefax Ltd

Lin Du Corp. lent $30,053 to Prefax Ltd., accepting Prefax’s $40,000, three-year, zero-interest-bearing note. The implied interest is 10%. (a) Prepare Lin Du’s journal entries for the initial transact...

Q: Use the information for Aitocs Inc. in BE7-15 and

Use the information for Aitocs Inc. in BE7-15 and assume instead that Aitocs follows ASPE. Prepare the entries to record (a) the sale of Aitocs’ equipment and receipt of the note, (b) the recognition...

Q: On October 1, 2017, Alpha Inc. assigns $3

On October 1, 2017, Alpha Inc. assigns $3 million of its accounts receivable to Alberta Provincial Bank as collateral for a $2.6-million loan evidenced by a note. The bank’s charges are as follows: a...

Q: On August 15, 2017, Japan Ideas consigned 500 electronic play

On August 15, 2017, Japan Ideas consigned 500 electronic play systems, costing $100 each, to YoYo Toys Company. The cost of shipping the play systems amounted to $1,250 and was paid by Japan Ideas. On...

Q: Explain the rights and obligations created in the following transactions.

Explain the rights and obligations created in the following transactions. (a) A manufacturer sells goods with terms f.o.b. shipping point. (b) A manufacturer sells goods with terms f.o.b. destination...

Q: On July 10, 2017, Amodt Music sold CDs to retailers

On July 10, 2017, Amodt Music sold CDs to retailers on account for a selling price of $700,000 (cost $560,000). Amodt grants the right to return CDs that do not sell in three months following delivery...

Q: In December 2014, the IASB issued an Exposure Draft (ED

In December 2014, the IASB issued an Exposure Draft (ED) called Disclosure Initiative: Proposed Amendments to IAS 7 concerning potential improvements to the statement of cash flows. The first proposed...

Q: The financial statements of BCE Inc. reported net sales of $

The financial statements of BCE Inc. reported net sales of $21,042 million for its year ended December 31, 2014, and $20,400 million for its year ended December 31, 2013. Accounts receivable (net) wer...

Q: Genesis Ltd. designated Alexa Kidd as petty cash custodian and established

Genesis Ltd. designated Alexa Kidd as petty cash custodian and established a petty cash fund of $400. The fund is reimbursed when the cash in the fund is at $57. Petty cash receipts indicate that fund...