Questions from Intermediate Accounting

Q: The records for the Clothing Department of Ji-Woon’s Department Store

The records for the Clothing Department of Ji-Woon’s Department Store are summarized as follows for the month of January: 1. Inventory, January 1: at retail, $28,000; at cost, $18,000 2. Purchases in...

Q: The cash account of Villa Corp. shows a ledger balance of

The cash account of Villa Corp. shows a ledger balance of $3,969.85 on June 30, 2017. The bank statement as at that date indicates a balance of $4,150. When the statement was compared with the cash re...

Q: On February 1, 2017, Akeson Ltd. began selling electric

On February 1, 2017, Akeson Ltd. began selling electric scooters that it purchased exclusively from Ionone Motors Inc. Ionone Motors offers vendor rebates based on the volume of annual sales to its cu...

Q: In its 2014 financial statements (Note 3), Air Canada has

In its 2014 financial statements (Note 3), Air Canada has disclosed its critical estimates and judgements used in preparing the financial statements. Instructions: Access the 2014 audited annual fina...

Q: Ianthe Limited, a manufacturer of small tools, provided the following

Ianthe Limited, a manufacturer of small tools, provided the following information from its accounting records for the year ended December 31, 2017: Inventory at December 31, 2017 (based on physical c...

Q: Halm Skidoos Limited, a private company that began operations in 2014

Halm Skidoos Limited, a private company that began operations in 2014, always values its inventories at their current net realizable value. The company uses ASPE. Its annual inventory figure is arrive...

Q: Some of the transactions of Collins Corp. during August follow.

Some of the transactions of Collins Corp. during August follow. Collins uses the periodic inventory method. Aug. 10…………………………..Purchased merchandise on account, $12,000, terms 2/10, n/30. 13……………Retu...

Q: Lupulin Limited stocks a variety of sports equipment for sale to institutions

Lupulin Limited stocks a variety of sports equipment for sale to institutions. The following stock record card for basketballs was taken from the records at the December 31, 2017 year end: A physica...

Q: Milford Company determined its ending inventory at cost and at lower of

Milford Company determined its ending inventory at cost and at lower of cost and net realizable value at December 31, 2015, 2016, and 2017, as follows: Instructions: (a) Prepare the journal entries...

Q: MacAskill Corp. has the following portfolio of securities acquired for trading

MacAskill Corp. has the following portfolio of securities acquired for trading purposes and accounted for using the FV-NI model at September 30, 2017, the end of the company’s third...