Questions from Intermediate Accounting

Q: Gamers’ World buys 1,000 computer game CDs from a distributor

Gamers’ World buys 1,000 computer game CDs from a distributor that is discontinuing those games. The purchase price for the lot is $7,500. Gamers’ World will group...

Q: Newvo Ltd. shows on its statement of financial position a patent

Newvo Ltd. shows on its statement of financial position a patent. At its year end of October 31, 2015, the caption read Patent (net) $66,000 and at its year end of October 31, 2016, the caption read P...

Q: Doors Unlimited Ltd. purchases units of wood frames that have manufacturer’s

Doors Unlimited Ltd. purchases units of wood frames that have manufacturer’s rebates from Traders Inc. The rebate requires Doors Unlimited to purchase a minimum number of units in a calendar year. The...

Q: Bluebell Enterprises Ltd.’s records reported an inventory cost of $

Bluebell Enterprises Ltd.’s records reported an inventory cost of $55,600 and a net realizable value of $54,000 at December 31, 2015. At December 31, 2016, the records indicated a cost of $68,700 and...

Q: More & More Limited uses a periodic inventory system. On June

More & More Limited uses a periodic inventory system. On June 24, the company sold 600 units. The following additional information is available: (a) Calculate the June 30 inventory and the June...

Q: For each of the scenarios noted in BE6-17, when

For each of the scenarios noted in BE6-17, when would revenue be recognized under the earnings approach? Data from BE6-17: What is the earnings process under ASPE for each of the following scenarios...

Q: Consider a large dairy farming company that reports under IFRS. Beyond

Consider a large dairy farming company that reports under IFRS. Beyond manufacturing, farm property, and equipment, the farm’s main assets are the dairy cows and the milk that they produce. Describe h...

Q: Farmer Brown Industries Inc. is in the business of producing organic

Farmer Brown Industries Inc. is in the business of producing organic foods for sale to restaurants and in local markets. The company uses IFRS and has a June 30 fiscal year end. As an experiment, the...

Q: The financial statements of winery Andrew Peller Limited reported net sales of

The financial statements of winery Andrew Peller Limited reported net sales of $297,824 thousand for its year ended March 31, 2014. Accounts receivable were $22,693 thousand at March 31, 2014, and $25...

Q: IFRS provides guidance on impairment testing—in particular, what is

IFRS provides guidance on impairment testing—in particular, what is supportable evidence of impairment of loans and receivables. Instructions: Read IFRS 9, 5.5 “Impairment” and reference as appropri...