Questions from Intermediate Accounting

Q: On October 1, 2017, Ocean Airways Ltd. purchased a

On October 1, 2017, Ocean Airways Ltd. purchased a new commercial aircraft for a total cost of $100 million. Included in the total cost are the aircraft’s two engines, at a cost of $10 million each, a...

Q: E-Learning Educational Services Inc. incurred the following costs associated

E-Learning Educational Services Inc. incurred the following costs associated with its research facilities. Indicate whether these items are capitalized or expensed in the current year, assuming the co...

Q: Azure Industries Ltd. acquired two copyrights during 2017. One copyright

Azure Industries Ltd. acquired two copyrights during 2017. One copyright was on a textbook that was developed internally at a cost of $36,000. This textbook is estimated to have a useful life of three...

Q: Odyssey Ltd. purchased machinery on January 1, 2017, for

Odyssey Ltd. purchased machinery on January 1, 2017, for $60,000. The machinery is estimated to have a residual value of $6,000 after a useful life of eight years. (a) Calculate the 2017 depreciation...

Q: The following assets have been recognized as items of property, plant

The following assets have been recognized as items of property, plant, and equipment: 1 . Head office boardroom table and executive chairs 2. Landfill site 3. Escalator in shopping mall 4. Forklift ve...

Q: Selected account information follows for Entertainment Inc. as at December 31

Selected account information follows for Entertainment Inc. as at December 31, 2017. All the accounts have debit balances. Assume the company uses IFRS when preparing fi nancial statements. Instruct...

Q: Berrie Electric Inc. has the following amounts included in its general

Berrie Electric Inc. has the following amounts included in its general ledger at December 31, 2017: Instructions: (a) Based on the information provided, calculate the total amount for Berrie to repo...

Q: Access the annual financial statements of Andrew Peller Limited for the year

Access the annual financial statements of Andrew Peller Limited for the year ended March 31, 2015, on SEDAR (www.sedar.com) or the company’s website (www.andrewpeller.com). Instructions: Refer to the...

Q: Selected information follows for Mount Olympus Corporation for three independent situations:

Selected information follows for Mount Olympus Corporation for three independent situations: 1. Mount Olympus purchased a patent from Bakhshi Co. for $1.8 million on January 1, 2015. The patent expire...

Q: As the recently appointed auditor for Daleara Corporation, you have been

As the recently appointed auditor for Daleara Corporation, you have been asked to examine selected accounts before the six-month financial statements of June 30, 2017, are prepared. The controller for...