Questions from Intermediate Accounting

Q: Moleski Limited, a private company following ASPE, includes one coupon

Moleski Limited, a private company following ASPE, includes one coupon in each box of soap powder that it produces, and 10 coupons are redeemable for a premium (a kitchen utensil). In 2017, Moleski pu...

Q: Pucci Corporation is a machinery dealer whose shares trades on the TSX

Pucci Corporation is a machinery dealer whose shares trades on the TSX, and so uses IFRS 16. Pucci leased a machine to Ernst Ltd. on January 1, 2017. The lease is for a six-year period and requires eq...

Q: Three independent situations follow. Situation 1: Marquart Stamp Corporation

Three independent situations follow. Situation 1: Marquart Stamp Corporation records stamp service revenue and provides for the cost of redemptions in the year stamps are sold to licensees. The stamps...

Q: Timo van Leeuwen operates a very busy roadside fruit and vegetable stand

Timo van Leeuwen operates a very busy roadside fruit and vegetable stand from May to October every year as part of his farming operation, which has a December 31 year end and uses ASPE. Each time a cu...

Q: St. Thomas Auto Repairs is preparing the financial statements for the

St. Thomas Auto Repairs is preparing the financial statements for the year ended November 30, 2017. As the accountant, you are looking over the information regarding short-term liabilities, and determ...

Q: Islim Limited manufactures faux fur coats of all types and sizes that

Islim Limited manufactures faux fur coats of all types and sizes that are sold to specialty stores throughout Canada. Sales to retailers provide for payment within 60 days of delivery and the retailer...

Q: Four independent situations follow. Situation 1: During 2017,

Four independent situations follow. Situation 1: During 2017, Sugarpost Inc. became involved in a tax dispute with the CRA. Sugarpost’s tax lawyers have informed management that Sugarpost will likely...

Q: Refer to the information for Darby Corporation in E13-2.

Refer to the information for Darby Corporation in E13-2. Instructions: (a) Prepare the journal entries for the payment of the notes at maturity. (b) Repeat part (a) assuming Darby uses reversing entr...

Q: Locate the 2015 audited annual financial statements of a company that may

Locate the 2015 audited annual financial statements of a company that may be experiencing financial difficulties, such as a pharmaceutical company still primarily in the research and development stage...

Q: Henrietta Aguirre, the ethical accountant, is the newly hired Director

Henrietta Aguirre, the ethical accountant, is the newly hired Director of Corporate Taxation for Mesa Incorporated, which is a publicly traded corporation. Aguirre’s first job with Mesa was to review...