Questions from Intermediate Accounting

Q: Inventory was received and was recorded at the invoice price of $

Inventory was received and was recorded at the invoice price of $56,000. The goods had not been paid for at year-end. Consequently, a 2% discount for early payment was not taken. Case B In the lower-o...

Q: Inventory of $45,000 was purchased and paid for by

Inventory of $45,000 was purchased and paid for by a company. Taxes paid on the merchandise included GST of $3,150 and PST of $4,050. These amounts were separately tracked. Case B A manufacturing comp...

Q: Nadullo Electronics manufactures, among other things, motherboards used to make

Nadullo Electronics manufactures, among other things, motherboards used to make cell phones. Direct materials and labour are $5.05/unit and $13.86/unit, respectively. Manufacturing overhead is estimat...

Q: Yarn Textiles manufactures laces used in shoes, boots and sporting goods

Yarn Textiles manufactures laces used in shoes, boots and sporting goods. The cost to manufacture shoe laces is $0.75 in direct materials, $0.60 in direct labour. Under normal capacity, the company es...

Q: For each of the following assets, assign the asset to a

For each of the following assets, assign the asset to a category of long-lived asset and identify the available choices for valuation models (IFRS): 1. Rental apartment buildings 2. Manufacturing faci...

Q: Ted Khan owns Khan Development Inc. During 20X7, the following

Ted Khan owns Khan Development Inc. During 20X7, the following transactions took place: 1. Transaction A Khan acquired a parcel of land for $10,500,000 (plus 3% in real estate commissions). On closing...

Q: Wonder Mountain Company operates a snow sports resort for skiers and snowboarders

Wonder Mountain Company operates a snow sports resort for skiers and snowboarders. The company has recently decided to replace an existing old chair lift with a new high-speed quad chair and expand th...

Q: Casa Corp. needed a warehouse and maintenance facility on its company

Casa Corp. needed a warehouse and maintenance facility on its company site, which already housed three manufacturing/storage facilities and the company head office. The lowest outside bid for the faci...

Q: Markus Company received two donations during the year. A long-

Markus Company received two donations during the year. A long-term client donated a piece of artwork from his personal art collection to display in the company’s entranceway as a thank-you for all of...

Q: Fong Corp. reported various transactions in 20X2: 1.

Fong Corp. reported various transactions in 20X2: 1. Equipment with an original cost of $32,500 and accumulated depreciation of $26,000 was deemed unusable and was sold for $250 scrap value. 2. A new...