Questions from Intermediate Accounting

Q: Wizard Corp., a private company, obtained land by issuing 2

Wizard Corp., a private company, obtained land by issuing 2,000 of its common shares. The land was appraised at $85,000 by a reliable, independent valuator on the date of acquisition. Last year, Wizar...

Q: Spencer Ltd. traded a used truck (cost $30,

Spencer Ltd. traded a used truck (cost $30,000, accumulated depreciation $27,000, fair value $2,000) for a new truck with a fair value of $33,000. Spencer also made a cash payment of $31,000. Prepare...

Q: Hambrecht Corp. is preparing its financial statements for the fiscal year

Hambrecht Corp. is preparing its financial statements for the fiscal year ending November 30, 2017. Certain specialized equipment was scrapped on January 1, 2018. At November 30, 2017, this equipment...

Q: Greentree Properties Ltd. is a publicly listed company following IFRS.

Greentree Properties Ltd. is a publicly listed company following IFRS. Assume that on December 31, 2017, the carrying amount of land on the statement of fi nancial position is $500,000. Management det...

Q: Use the information for Swanton Corp. in BE10-14.

Use the information for Swanton Corp. in BE10-14. Prepare the entries to record the three cash transactions, assuming the deferral method is used. Data from BE10-14: In early January, Swanton Corp....

Q: Stora Enso Oyj described its business in its annual report as the

Stora Enso Oyj described its business in its annual report as the “global re thinker of the biomaterials, paper, packaging and wood products industry.” Instructions: Access the financial statements i...

Q: Caley Inc. owns a building with a carrying amount of $

Caley Inc. owns a building with a carrying amount of $1.5 million, as at January 1, 2017. On that date, Caley’s management determined that the building’s location is no longer suitable for the company...

Q: Volumetrics Corporation owns machinery that cost $20,000 when purchased

Volumetrics Corporation owns machinery that cost $20,000 when purchased on January 1, 2017. Depreciation has been recorded at a rate of $3,000 per year, resulting in a balance in accumulated depreciat...

Q: Use the information presented for Volumetrics Corporation in BE11-17,

Use the information presented for Volumetrics Corporation in BE11-17, but assume that the machinery is sold for $5,200 instead of $13,500. Prepare journal entries to (a) update depreciation for 2019 a...

Q: In its 2017 annual report, Winkler Limited reports beginning-of

In its 2017 annual report, Winkler Limited reports beginning-of-the-year total assets of $1,923 million, end-of-the-year total assets of $2,487 million, total revenue of $2,687 million, and net income...