Questions from Intermediate Accounting


Q: Refer to the financial statements and accompanying notes of Canadian Tire Corporation

Refer to the financial statements and accompanying notes of Canadian Tire Corporation Limited for its year ended January 3, 2015. The financial statements are available on SEDAR (www.sedar.com). Inst...

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Q: On April 1, 2017, Petey Ltd. paid $175

On April 1, 2017, Petey Ltd. paid $175 for a call to buy 700 shares of NorthernTel at a strike price of $27 per share any time during the next six months. The market price of NorthernTel’s shares was...

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Q: On January 1, 2017, Fresh Juice Ltd. entered into

On January 1, 2017, Fresh Juice Ltd. entered into a purchase commitment contract to buy 10,000 oranges from a local company at a price of $0.50 per orange anytime during the next year. The contract pr...

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Q: Cambridge Ltd. paid $250 for the option to buy 1

Cambridge Ltd. paid $250 for the option to buy 1,000 of its common shares for $15 each. The contract stipulates that it may only be settled by exercising the option and buying the shares. Cambridge Lt...

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Q: The following situations occur independently. 1. A company knows

The following situations occur independently. 1. A company knows that it will require a large quantity of euros to pay for some imports in three months. The current exchange rate is satisfactory, and...

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Q: Vanstone Corp., a public company, adopted a stock option plan

Vanstone Corp., a public company, adopted a stock option plan on November 30, 2017 that designated 70,000 common shares as available for the granting of options to officers of the corporation at an ex...

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Q: The following are unrelated transactions. 1. On March 1

The following are unrelated transactions. 1. On March 1, 2017, Loma Corporation issued $300,000 of 8% non-convertible bonds at 104, which are due on February 28, 2037. In addition, each $1,000 bond wa...

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Q: On January 1, 2017, Manfred Manufacturers had 300,000

On January 1, 2017, Manfred Manufacturers had 300,000 common shares outstanding. On April 1, the corporation issued 30,000 new common shares to raise additional capital. On July 1, the corporation dec...

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Q: On June 1, 2015, Gustav Corp. and Gabby Limited

On June 1, 2015, Gustav Corp. and Gabby Limited merged to form Fallon Inc. A total of 800,000 shares were issued to complete the merger. The new corporation uses the calendar year as its fiscal year....

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Q: Ottey Corporation issued $4 million of 10-year, 7

Ottey Corporation issued $4 million of 10-year, 7% callable convertible subordinated debentures on January 2, 2017. The debentures have a face value of $1,000, with interest payable annually. The curr...

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