Q: Two independent situations follow. 1. On January 1,
Two independent situations follow. 1. On January 1, 2017, Spartan Inc. bought land that had an assessed value of $390,000 at the time of purchase. A $600,000, non–interest-bearing note due on January...
See AnswerQ: Desrocher Ltd. issued an instalment note on January 1, 2017
Desrocher Ltd. issued an instalment note on January 1, 2017 (with a required yield of 9%) in exchange for land that it purchased from Safayeni Ltd. Safayeni’s real estate agent had listed the land on...
See AnswerQ: Buon Appetito Limited has been experiencing increased customer demand for its specialty
Buon Appetito Limited has been experiencing increased customer demand for its specialty food products. In order to meet this demand, the company has bought additional refrigeration units to hold more...
See AnswerQ: Yang Inc. was organized on January 1, 2017. It
Yang Inc. was organized on January 1, 2017. It is authorized to issue an unlimited number of common shares and 100,000 preferred shares with a $4 dividend. The following share transactions were comple...
See AnswerQ: Singh Inc., a public company, has been experiencing financial difficulty
Singh Inc., a public company, has been experiencing financial difficulty in the past few years. As a result, the common shares have been trading at a per share price of just over $1. If the stock trad...
See AnswerQ: The shareholders’ equity accounts of Abbasi Inc. have the following balances
The shareholders’ equity accounts of Abbasi Inc. have the following balances on December 31, 2017: Common shares, 400,000 shares issued and outstanding………………..$10,000,000 Contributed surplus………………………...
See AnswerQ: Presented below are five independent situations. All the companies involved use
Presented below are five independent situations. All the companies involved use ASPE unless otherwise noted. 1. On December 31, 2017, Zarle Inc. sold equipment to Orfanakos Corp. and immediately lease...
See AnswerQ: Original Octave Inc. (OOI) is a widely held,
Original Octave Inc. (OOI) is a widely held, publicly traded company that designs equipment for tuning musical instruments. Information about its shareholders’ equity is as follows....
See AnswerQ: Falkon Corp. reported the following amounts in the shareholders’ equity section
Falkon Corp. reported the following amounts in the shareholders’ equity section of its December 31, 2016 statement of financial position: Preferred shares, $8 dividend (10,000 shares authorized, 2,00...
See AnswerQ: Miss M’s Dance Studios Ltd. is a public company, and
Miss M’s Dance Studios Ltd. is a public company, and accordingly uses IFRS for financial reporting. The corporate charter authorizes the issuance of an unlimited number of common shares and 50,000 pre...
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