Questions from Intermediate Accounting

Q: Oil Tankers Inc.’s April 30 inventory was destroyed by the

Oil Tankers Inc.’s April 30 inventory was destroyed by the explosion of an underground oil tank. January 1 inventory was $250,000 and purchases for January through April totaled $620,000. Sales for th...

Q: Loza Corp. purchases inventory costing $4,000 on July

Loza Corp. purchases inventory costing $4,000 on July 11 on terms 3/10, n/30, and pays the invoice in full on July 15. (a) Prepare the required entries to record the two transactions, assuming Loza us...

Q: IFRS requires greater disclosure for inventory than ASPE. List the additional

IFRS requires greater disclosure for inventory than ASPE. List the additional requirements and explain what benefit each one might provide for the users of the financial statements. List some items th...

Q: Highfliers Inc. is a public company that purchases airplanes for sale

Highfliers Inc. is a public company that purchases airplanes for sale to others. However, until the airplanes are sold, the company charters and services them. What is the proper way to report these a...

Q: Boyko Company received an order from Lister Inc. on May 15

Boyko Company received an order from Lister Inc. on May 15, 2017, valued at $3,800. Boyko shipped the goods to Lister on May 31, 2017, with terms f.o.b. shipping point, and credit terms 2/10, n/30. As...

Q: Bali Corp. has $10,000 in surplus funds to

Bali Corp. has $10,000 in surplus funds to invest and is considering investing in either Company A or Company B. Company A promises to return the $10,000 original amount invested in three years’ time...

Q: Best Corp., a public company using IFRS, signed a long

Best Corp., a public company using IFRS, signed a long-term non-cancellable purchase commitment with a major supplier to purchase raw materials at an annual cost of $1 million. At December 31, 2016, t...

Q: Angus Enterprises Ltd. reported cost of goods sold for 2017 of

Angus Enterprises Ltd. reported cost of goods sold for 2017 of $2.5 million and retained earnings of $4.0 million at December 31, 2017. Angus later discovered that its ending inventories at December 3...

Q: Early in its 2017 fiscal year (December 31 yearend), Hayes

Early in its 2017 fiscal year (December 31 yearend), Hayes Company purchased 10,000 shares of Kenyon Corporation common shares for $26.18 per share, plus $1,800 in brokerage commissions. These securit...

Q: The following information relates to Cortez Corp. for 2017: net

The following information relates to Cortez Corp. for 2017: net income of $672,683; unrealized loss of 20,830 related to investments accounted for at FV-OCI during the year; and accumulated other comp...