Questions from Intermediate Accounting

Q: Dubois Steel Corporation, as lessee, signed a lease agreement for

Dubois Steel Corporation, as lessee, signed a lease agreement for equipment for five years, beginning January 31, 2017. Annual rental payments of $41,000 are to be made at the beginning of each lease...

Q: CHL Corporation manufactures specialty equipment with an estimated economic life of 12

CHL Corporation manufactures specialty equipment with an estimated economic life of 12 years and leases it to Provincial Airlines Corp. for a period of 10 years. Both CHL and Provincial Airlines follo...

Q: Assume the same data as in P20-15 and that Provincial

Assume the same data as in P20-15 and that Provincial Airlines Corp. has an incremental borrowing rate of 8%. Instructions: Answer the following questions, rounding all numbers to the nearest dollar....

Q: Jennings Inc., which uses IFRS 16, manufactures an X-

Jennings Inc., which uses IFRS 16, manufactures an X-ray machine with an estimated life of 12 years and leases it to SNC Medical Centre for a period of 10 years. The machine’s normal selling price is...

Q: Lanier Dairy Ltd. leases its milk cooling equipment from Green Finance

Lanier Dairy Ltd. leases its milk cooling equipment from Green Finance Corporation. Both companies use IFRS 16. The lease has the following terms. 1. The lease is dated May 30, 2017, with a lease term...

Q: You have just been hired as the new controller of SWT Services

You have just been hired as the new controller of SWT Services Inc., and on the top of the stack of papers on your new desk is a bundle of draft contracts with a note attached. The note says, “Please...

Q: Instructions: Access the financial statements of Air Canada and WestJet

Instructions: Access the financial statements of Air Canada and WestJet Airlines Ltd. for their years ended December 31, 2014 through SEDAR (www.sedar.com) or the companies’ websites. Review the finan...

Q: On January 1, 2017, Hunter Ltd. entered into an

On January 1, 2017, Hunter Ltd. entered into an agreement to lease a truck from Situ Ltd. Both Hunter and Situ use IFRS 16. The details of the agreement are as follows: Carrying value of truck for Si...

Q: Refer to the information in P20-3. Instructions

Refer to the information in P20-3. Instructions: (a) Prepare the journal entries that Situ would make on January 1, 2017 and the adjusting journal entries at December 31, 2017, to record the annual i...

Q: LePage Manufacturing Ltd. agrees to lease equipment to Labonté Ltée.

LePage Manufacturing Ltd. agrees to lease equipment to Labonté Ltée. on July 15, 2017. LePage follows ASPE and Labonté is a public company following IFRS 16. The following information relates to the l...