Questions from Intermediate Accounting

Q: On 1 July 20X2, a company bought an investment in IBM

On 1 July 20X2, a company bought an investment in IBM bonds at par for US$50,000 when the exchange rate was US$1 = Cdn$1.12. The investment is classified as FVTPL. The company paid cash on the acquisi...

Q: IFRS or ASPE ? - Investment in 10-year bonds

IFRS or ASPE ? - Investment in 10-year bonds. Bonds were purchased when interest rates were high. Rates are expected to decline, and when this happens the bonds will be sold. - Investment in 10-year b...

Q: Oundjian Corporation recently sold inventory for $140,000. The

Oundjian Corporation recently sold inventory for $140,000. The goods had originally cost $94,000. Inflation during the period was 5%. The goods could be replaced from their long-time supplier for $115...

Q: IFRS or ASPE? - 20% investment in publicly traded

IFRS or ASPE? - 20% investment in publicly traded company. Significant influence exists. - 25% investment in private company. Significant influence exists. - 70% investment in private company. Control...

Q: On 1 January 20X4, Queen Company purchased $5,000

On 1 January 20X4, Queen Company purchased $5,000,000 of Sport Corp. 7% bonds, classified as an FVOCI-Bonds investment. The bonds pay semi-annual interest each 30 June and 31 December. The market inte...

Q: On 1 January 20X2, Lucky Company purchased $5,000

On 1 January 20X2, Lucky Company purchased $5,000,000 of Fire Corp. 3% bonds, classified as a FVTPL. The bonds pay semi-annual interest each 30 June and 31 December. The market interest rate was 4% on...

Q: On 1 January 20X2, Speedy Company purchased $3,000

On 1 January 20X2, Speedy Company purchased $3,000,000 of Wind Corp. 3% bonds, classified as an FVOCI-Bond investment for $2,737,438. The bonds pay semi-annual interest each 30 June and 31 December. T...

Q: On 1 July 20X2, King Ltd. purchased $500,

On 1 July 20X2, King Ltd. purchased $500,000 bonds of Princess Inc. at par. The bonds pay 6% interest annually on June 30. The bonds mature on 30 June 20X9. King has a June 30 year-end. At 30 June 20X...

Q: On 30 June 20X2, King Ltd. purchased 10,000

On 30 June 20X2, King Ltd. purchased 10,000 shares of Prince Inc. for $12,000 plus $1,000 in commission. In 20X2, the company received $500 of dividends, and the shares had a fair value of $16,000 at...

Q: In 20X1, FYY Ltd. purchased 500 shares of Humor Inc

In 20X1, FYY Ltd. purchased 500 shares of Humor Inc. for $6,000 plus $500 in commission. The shares had a fair value of $19,000 at the end of 20X1, $25,000 at the end of 20X2, and $40,000 at the end o...