Questions from Intermediate Accounting

Q: Wen Corp., a public company located in Manitoba, both purchases

Wen Corp., a public company located in Manitoba, both purchases and constructs various pieces of machinery and equipment that it uses in its operations. The following items are for machinery that was...

Q: Jamil Jonas is an accountant in public practice. Not long ago

Jamil Jonas is an accountant in public practice. Not long ago, Jamil struck a deal with his neighbor Ralph to prepare Ralph’s business income tax and GST returns for 2017 in exchange for Ralph’s servi...

Q: Light stone Equipment Ltd. wanted to expand into New Brunswick and

Light stone Equipment Ltd. wanted to expand into New Brunswick and was impressed by the provincial government’s grant program for new industry. Once it was sure that it would qualify for the grant pro...

Q: On March 1 2017, Russell Winery Ltd. purchased a five

On March 1 2017, Russell Winery Ltd. purchased a five-hectare commercial vineyard for $1,050,000. The total purchase price was based on appraised market values of the building, grapevines, and equipme...

Q: Plaza Holdings Inc., a publicly listed company in Canada, ventured

Plaza Holdings Inc., a publicly listed company in Canada, ventured into construction of a mega–shopping mall in Edmonton, which is rated as the largest shopping mall in North America. The company’s bo...

Q: Nevine Corporation owns and manages a small 10-store shopping centre

Nevine Corporation owns and manages a small 10-store shopping centre and classifies the shopping centre as an investment property. Nevine has a May 31 year end and initially recognized the property at...

Q: A partial statement of financial position of Blue water Ltd. on

A partial statement of financial position of Blue water Ltd. on December 31, 2016, showed the following property, plant, and equipment assets accounted for under the cost model (accumulated depreciati...

Q: On January 1, 2017, Algo Ltd. acquires a building

On January 1, 2017, Algo Ltd. acquires a building at a cost of $230,000. The building is expected to have a 20-year life and no residual value. The asset is accounted for under the revaluation model,...

Q: From the IFRS website (www.ifrs.org), locate

From the IFRS website (www.ifrs.org), locate the “Update by the IASB and FASB” to the meeting of the G20 finance ministers and central bank governors on February 15 and 16, 2013, as well as the update...

Q: On January 1, 2017, the accounting records of Sasseville Ltée

On January 1, 2017, the accounting records of Sasseville Ltée included a debit balance of $15 million in the building account and of $12 million in the related accumulated depreciation account. The bu...