Questions from Intermediate Accounting

Q: Treeton Inc. had net income for the fiscal year ended June

Treeton Inc. had net income for the fiscal year ended June 30, 2017 of $5 million. There were 500,000 common shares outstanding throughout 2017. The average market price of the common shares for the e...

Q: As auditor for Checkem & Associates, you have been assigned to

As auditor for Checkem & Associates, you have been assigned to review Tao Corporation’s calculation of earnings per share for the current year. The controller, Mac Taylor, has su...

Q: The following information is for Polo Limited for 2017:

The following information is for Polo Limited for 2017: There were no changes during 2017 in the number of common shares, preferred shares, or convertible bonds outstanding. For simplicity, ignore t...

Q: Jackie Enterprises Ltd. has a tax rate of 30% and

Jackie Enterprises Ltd. has a tax rate of 30% and reported net income of $8.5 million in 2017. The following details are from Jackie’s statement of financial position as at December...

Q: The following information is available for Dylan Inc., a company whose

The following information is available for Dylan Inc., a company whose shares are traded on the Toronto Stock Exchange: Other information: 1. For all of the fiscal year 2017, $100,000 of 6% cumulati...

Q: The first audit of the books of Gomez Limited was recently carried

The first audit of the books of Gomez Limited was recently carried out for the year ended December 31, 2017. Gomez follows IFRS. In examining the books, the auditor found that certain items had been o...

Q: Gateway Corporation has outstanding 200,000 common shares that were issued

Gateway Corporation has outstanding 200,000 common shares that were issued at $10 per share. The balances at January 1, 2017 were $21 million in its Retained Earnings account; $4.3 million in its Cont...

Q: Rocky Mountain Corp. currently has an issued debenture outstanding with Abbra

Rocky Mountain Corp. currently has an issued debenture outstanding with Abbra Bank. The note has a principal of $2 million, was issued at face value, and interest is payable at 7%. The term of the deb...

Q: Loretta Corporation, a publicly traded company, is preparing the comparative

Loretta Corporation, a publicly traded company, is preparing the comparative financial statements to be included in the annual report to shareholders. Loretta’s fiscal year ends May 31. The following...

Q: Audrey Inc. has 1 million common shares outstanding as at January

Audrey Inc. has 1 million common shares outstanding as at January 1, 2017. On June 30, 2017, 4% convertible bonds were converted into 100,000 additional shares. Up to that point, the bonds had paid in...