Question: Net income figures for Belgian Ltd. are

> Keith Nobrega is trying to determine the amount to set aside so that he will have enough money on hand in two years to overhaul the engine on his vintage used car. While there is some uncertainty about the cost of engine overhauls in two years, by conduc

> Corporation during the current year. 1. Ordinary operating maintenance on equipment was recorded as follows: Equipment……………………………………………..2,500 Accounts Payable…………………………………….2,500 2. Trimm received an advance on a custom order for merchandise that will

> Selected accounts for Winslow Inc. as at December 31, 2017, are as follows: Instructions: Prepare closing entries for Winslow Inc. on December 31, 2017. Inventory FV-NI Investments FV-OCI Investments Retained Earnings Dividends Accumulated Other $

> Use the information in E5-14 for Carmichael Industries. Instructions: (a) Calculate the current and acid test ratios for 2016 and 2017. (b) Calculate Carmichael’s current cash debt coverage ratio for 2017. (c) Based on the analyses in

> Use the information in E5-18 for Sensify Corporation. Instructions: (a) Calculate the current ratio and debt to total assets ratio as at December 31, 2016 and 2017. Calculate the free cash flow for December 31, 2017. (b) Based on the analysis in (a), co

> Rudolph Corp. is a subsidiary of Huntley Corp. and follows IFRS. The ethical accountant, working as Rudolph’s controller, believes that the yearly charge for doubtful accounts for Rudolph should be 2% of net credit sales. The president, nervous that the

> Echo Corp., a retail propane gas distributor, has increased its annual sales volume to a level that is three times greater than the annual sales of a dealer that it purchased in 2016 in order to begin operations. The board of directors of Echo Corp. rece

> The comparative statement of financial position of Sensify Corporation as at December 31, 2017, follows: Net income of $37,000 was reported and dividends of $13,000 were declared and paid in 2017. New equipment was purchased, and equipment with a carry

> The comparative statement of financial position of Dropafix Inc. as at June 30, 2017, and a statement of comprehensive income for the 2017 fiscal year follow: DROPAFIX INC. Statement of Comprehensive Income For the Year Ended June 30, 2017 Net sales&ac

> The statement of income of Kneale Transport Inc. for the year ended December 31, 2017, reported the following condensed information: Kneale’s statement of financial position included the following comparative data at December 31: Ad

> Eddie Zambrano Corporation, a private company, began operations on January 1, 2014. During its first three years of operations, Zambrano reported net income and declared dividends as follows: The following information is for 2017: Income before income

> A comparative statement of financial position for Carmichael Industries Inc. follows: Additional information: 1. Net income for the fiscal year ending December 31, 2017, was $129,000. 2. Cash dividends of $60,000 were declared and paid. Dividends paid

> It is February 2018 and Janix Corporation is preparing to issue fi nancial statements for the year ended December 31, 2017. To prepare fi nancial statements and related disclosures that are faithfully representative, Janix is reviewing the following even

> Several statement of financial position accounts of Green spoon Inc. follow: 1. FV-OCI Investments 2. Common Shares 3. Dividends Payable 4. Accumulated Depreciation—Equipment 5. Construction in Process (Warehouse) 6. Petty Cash 7. Interest Payable

> The following information was taken from the records of Biscay Inc. for the year 2017: The following additional information was also available: income tax applicable to income from continuing operations, $465,000; income tax recovery applicable to loss

> Income statement information for Flett Tire Repair Corporation for the year 2017 follows: The effective tax rate on all income is 25%, and Flett applies ASPE. Instructions: (a) Prepare a multiple-step income statement for 2017, showing expenses by fun

> The trial balance for Hanna Resort Limited on August 31 is as follows: Additional information: 1. The balance in Prepaid Insurance includes the cost of an insurance policy that will expire on September 30, 2017. 2. An inventory count on August 31 shows

> Write a short essay (one or two pages) describing the incurred loss model and the expected loss model of impairment. Summarize each model and compare the two models, indicating the potential benefits and drawbacks of each. Which model do you think provid

> Videohound Video Company, a sole proprietorship, had the following information for 2017: Instructions: Calculate the net income for 2017. $ 23,000 19,000 $101,000 20,000 Cash balance, January 1 Accounts receivable, January 1 Collections from custom

> The following are all changes in the account balances of Chili Lime Ltd. during the current year, except for Retained Earnings: Instructions: Calculate the net income for the current year, assuming that there were no entries in the Retained Earnings ac

> On October 5, 2017, Diamond in the Rough Recruiting Group Inc.’s board of directors decided to dispose of the Blue Division. A formal plan was approved. Diamond derives approximately 75% of its income from its human resources management practice. The Blu

> A review of the accounts of Tucker and Wu Pan Accountants reflected the following transactions, which may or may not require adjustment for the year ended December 31, 2017. 1. The Prepaid Rent account shows a debit of $7,200 paid October 1, 2017, for a

> Bill Rosenberg recently opened his legal practice as a sole proprietorship. During the first month of operations, the following events and transactions occurred: Apr. 2 Invested $15,000 cash along with equipment valued at $10,000 in the business. 2 Hired

> Pike Corporation, a clothing retailer, had income from operations (before tax) of $375,000, and recorded the following before-tax gains/(losses) for the year ended December 31, 2017: Gain on sale of equipment……………………………………………..27,000 Unrealized (loss)/g

> Canviar Corp. maintains its financial records using the cash basis of accounting. As it would like to secure a long-term loan from its bank, the company asks you, as an independent CPA, to convert its cash basis income statement information to the accrua

> At December 31, 2017, Tres Hombres Corporation had the following shares outstanding: 10% cumulative preferred shares,……………………………107,500 shares outstanding ………………………………………….$10,750,000 Common shares, …………………………………………………4,000,000 shares outstanding ………………

> The shareholders’ equity section of Cadmium Corporation as at December 31, 2017, follows: Net income of $24 million for 2017 reflects a total effective tax rate of 25%. Included in the net income figure is a loss of $15 million (befor

> Rainy Day Umbrella Corporation had the following balances at December 31, 2016 (all amounts in thousands): preferred shares, $3,375; common shares, $8,903; contributed surplus, $3,744; retained earnings, $23,040; and accumulated other comprehensive incom

> Instructions: Gain access to the 2014 financial statements of Potash Corporation of Saskatchewan from the company’s website (www.potashcorp.com) or www.sedar.com. The company, also known as PotashCorp, indicates prior to Note 1 to the financial statement

> The following are selected ledger accounts of Holland Rose Corporation at December 31, 2017: Holland’s effective tax rate on all items is 25%. A physical inventory indicates that the ending inventory is $686,000. The number of common

> The following balances were taken from the books of Quality Fabrication Limited on December 31, 2017: Assume the total effective tax rate on all items is 25%. Instructions: Prepare a multiple-step income statement showing expenses by function. Assume

> Two accountants, Yuan Tsui and Sergio Aragon, are arguing about the merits of presenting an income statement in the multiple-step versus the single-step format. The discussion involves the following 2017 information for P. Bride Company (in thousands):

> The financial records of Geneva Inc. were destroyed by fi re at the end of 2017. Fortunately, the controller had kept the following statistical data related to the income statement: 1. The beginning merchandise inventory was $84,000 and it decreased by 2

> The following is information for Gottlieb Corp. for the year ended December 31, 2017: The effective tax rate is 25% on all items. Gottlieb prepares financial statements in accordance with IFRS. The FV-OCI investments trade on the stock exchange. Gains/

> Reach Out Card Company Limited reported the following for 2017: net sales revenue, $1.2 million; cost of goods sold, $750,000; selling and administrative expenses, $320,000; gain on disposal of building, $250,000; and unrealized gain-OCI (related to FV-O

> (a) Identify three common forms of business organizations. Briefly outline the pros and cons of setting up a company using each form of organization. (b) Identify why accounting professionals use LLPs and PCs.

> The conceptual framework identifies the fundamental and enhancing qualitative characteristics that make accounting information useful. Instructions Answer the following questions related to these qualitative characteristics. (a) Which quality of financia

> The conceptual framework has been created to make accounting information useful. Instructions: Indicate whether the following statements about the conceptual framework are true or false. If false, provide a brief explanation supporting your position. (a

> Alex Roddick is the new owner of Ace Computer Services. At the end of August 2017, his first month of ownership, Roddick is trying to prepare monthly financial statements. Below is some information related to unrecorded expenses that the business incurre

> Structured entities or variable interest entities (VIEs) have long been on the agendas of the financial accounting standard setting communities. Recently, however, standards have been updated to deal with the issues presented by such entities. Instructi

> Barnett Inc. purchased computer equipment on March 1, 2017, for $31,000. The computer equipment has a useful life of fi ve years and a residual value of $1,000. Barnett uses a double declining-balance method of depreciation for this type of capital asset

> During 2017, Laiken Limited sold its only Class 3 asset. At the time of sale, the balance of the un depreciated capital cost for this class was $37,450. The asset originally cost $129,500. Instructions: (a) Calculate recaptured CCA, capital gains, and t

> On August 1, 2017, Iroko Corporation purchased a new machine for its assembly process. The cost of this machine was $136,400. The company estimated that the machine would have a trade-in value of $14,200 at the end of its useful life. Its useful life was

> The 2017 annual report of Trocchi Inc. contains the following information (in thousands): Instructions: (a) Calculate the following ratios for Trocchi Inc. for 2017: 1. Asset turnover ratio 2. Rate of return on assets 3. Profit margin on sales (b) How

> On April 1, 2017, Lombardi Corp. was awarded $460,000 cash as compensation for the forced sale of its land and building, which were directly in the path of a new highway. The land and building cost $60,000 and $280,000, respectively, when they were acqui

> On December 31, 2016, Grey Inc. owns a machine with a carrying amount of $940,000. The original cost and accumulated depreciation for the machine on this date are as follows: Machine…………………………………………………………$1,300,000 Accumulated depreciation………………………………….

> Consider the following independent situations for Kwok Corporation. Kwok applies ASPE. Situation 1: Kwok purchased equipment in 2010 for $120,000 and estimated a $12,000 residual value at the end of the equipment’s 10-year useful life. At December 31, 20

> As the president of Niagara Wineries Corp., you are considering purchasing Grimsby Wine Accessories Limited, whose statement of financial position is summarized as follows: The current assets’ fair value is $80,000 higher than their c

> Onkar Corporation bought a machine on June 1, 2013, for $31,800, f.o.b. the place of manufacture. Freight costs were $300, and $500 was spent to install it. The machine’s useful life was estimated at 10 years, with a residual value of $1,900, while the m

> Refer to the 2014 financial statements and accompanying notes of Royal Bank of Canada (RBC) that are found on the company’s website (www.royalbank.ca) or at www.sedar.com. Instructions: (a) What percentage of RBC’s total assets is held in investments (a

> Rotterdam Corporation’s pre-tax accounting income of $725,000 for the year 2017 included the following items: Amortization of identifiable intangibles…………………$147,000 Depreciation of building………………………………………….115,000 Loss from discontinued operations……………

> The following is net asset information for the Dhillon Division of Klaus, Inc.: The purpose of the Dhillon Division (also identified as a reporting unit or cash-generating unit) is to develop a nuclear-powered aircraft. If successful, travelling delays

> On July 1, 2017, Zoe Corporation purchased the net assets of Soorya Company by paying $415,000 cash and issuing a $50,000 note payable to Soorya Company. At July 1, 2017, the statement of financial position of Soorya Company was as follows: The recorde

> Fred Moss, owner of Medici Interiors Inc., is negotiating for the purchase of Athenian Galleries Ltd. The condensed statement of financial position of Athenian follows in an abbreviated form: Medici and Athenian agree that the land is undervalued by $4

> Refer to the information provided in E12-17, but now assume that Lighting Designs Corp. is a publicly accountable company. At December 31, 2017, the copyright’s value in use is $1,850,000 and its selling costs are $100,000. Instructions: (a) Prepare the

> The following information is for a copyright owned by Lighting Designs Corp., a private entity, at December 31, 2017. Lighting Designs Corp. applies ASPE. Cost……………………………………………………………………………..$4,300,000 Carrying amount……………………………………………………………..2,150,000 Ex

> Instructions: Repeat E12-13, but now assume that the licence was granted in perpetuity and has an indefinite life, and that Dayton prepares financial statements in accordance with ASPE. Data from E12-13: At the end of 2017, Dayton Corporation owns a li

> Instructions: Repeat E12-13, but now assume that the licence was granted in perpetuity and has an indefinite life. Data from E12-13: At the end of 2017, Dayton Corporation owns a licence with a remaining life of 10 years and a carrying amount of $530,0

> Instructions: Repeat E12-13, but now assume that Dayton prepares financial statements in accordance with ASPE, and that the recoverable amount under ASPE (undiscounted future cash flows) is calculated to be $500,000 at the end of 2018. Data from E12-13:

> At the end of 2017, Dayton Corporation owns a licence with a remaining life of 10 years and a carrying amount of $530,000. Dayton expects undiscounted future cash flows from this licence to total $535,000. The licence’s fair value is $425,000 and disposa

> Refer to the annual financial statements of Brookfield Asset Management Inc. for its fiscal year ended December 31, 2014, found at the end of the book. Instructions: (a) Review Brookfield Asset Management Inc.’s balance sheet. Identify all financial inv

> Blue and White Town Taxi Incorporated applied for several taxi licences for its taxicab operations in the Town of Somerville and, on August 31, 2017, incurred costs of $12,500 in the application process. The outcome of applying for taxi licences in the t

> During 2017, Saskatchewan Enterprises Ltd., a private entity, incurred $4.7 million in costs to develop a new software product called Dover. Of this amount, $1.8 million was spent before establishing that the product was technologically and financially f

> Towers Inc. (TI) is a leader in delivering communications technology that powers global commerce and secures the world’s most critical information. Its shares trade on the Canadian and U.S. national stock exchanges. The company had been experiencing unpr

> Iskra Vremec and Colin McFee are experienced scuba divers who have spent many years in the salvage business. About a year ago, they decided to start their own company to recover damaged and sunken vessels and their cargoes off the east coast of Canada. T

> Shannonrock Racing Inc. (SR) is a promoter and sponsor of motor-sport activities. It is privately owned. The owner is looking to expand and has approached the local bank who has agreed to accept financial statements prepared in accordance with ASPE. The

> EMI Inc. is a public company that operates numerous movie theatres in Canada. Historically, it operated as a trust and its business model consisted of distributing all of its earnings to shareholders through dividends. As a result of tax changes two year

> Grappa Grapes Inc. (GGI) grows grapes and produces sparkling wines. The company is located in a very old area of town with easy access to fertile farmland that is excellent for growing grapes. It is owned by the Grappa family. The company has been in ope

> Fritz’s Furniture (FF) is a mid-sized owner-operated business that was started 25 years ago by Fred Fritz. The retail furniture business is cyclical, with business dropping off in times of economic downturn, as is the case currently. In order to encourag

> Standford Pharmaceuticals Inc. (SP) researches, develops, and produces over-the-counter drugs. During the year, it acquired 100% of the net assets of Jenstar Drugs Limited (JDL) for $200 million. The fair value of the identifiable assets at the time of t

> As a recent graduate and newly hired financial analyst for the local branch office of a national brokerage firm, you are excited to get your first assignment, allowing you to use your accounting expertise. Your supervisor provides you with updated data f

> Instructions: From SEDAR (www.sedar.com) or the company websites, access the financial statements of Loblaw Companies Limited for its year ended January 3, 2015, and Empire Company Limited for its year ended May 2, 2015. Review the financial statements a

> OG Limited (OG) is in the oil and gas business. It spends quite a bit of money each year exploring for new wells. Currently, it has several wells that are in the production phases. The company’s shares trade on the London Stock Exchange. OG is looking to

> Snow Spray Corp. (SSC) recently fi led for bankruptcy protection. The company manufactures downhill skis and reports under ASPE. With the increased popularity of such alternative winter sports as snowboarding and tubing, sales of skis are sagging. The co

> Dr. Gary Morrow, a former surgeon, is the president and owner of Morrow Medical (MM), a private Ontario company that focuses on the design and implementation of various medical and pharmaceutical products. With the recent success of various products put

> Tennessee Corp., reporting under ASPE, has provided the following information regarding its intangible assets: 1. A patent was purchased from Marvin Inc. for $1.2 million on January 1, 2016. Tennessee estimated the patent’s remaining useful life to be 10

> In 2017, Inventors Corp. spent $392,000 on a research project, but by the end of 2017 it was impossible to determine whether any benefit would come from it. Inventors prepares financial statements in accordance with IFRS. Instructions: (a) What account

> Oakville Corp. incurred the following costs during 2017 in connection with its research and development phase activities: Instructions: (a) Calculate the amount to be reported as research and development expense by Oakville on its income statement for

> In early January 2017, FJS Corporation applied for and received approval for a trade name, incurring legal costs of $52,500. In early January 2018, FJS incurred $28,200 in legal fees in a successful defense of its trade name. Instructions: (a) Managemen

> Institute Limited organized late in 2016 and set up a single account for all intangible assets. The following summary shows the entries in 2017 (all debits) that have been recorded in Intangible Assets since then: Instructions: (a) Prepare the necessar

> As the recently appointed auditor for Daleara Corporation, you have been asked to examine selected accounts before the six-month financial statements of June 30, 2017, are prepared. The controller for Daleara Corporation mentions that only one account is

> Selected information follows for Mount Olympus Corporation for three independent situations: 1. Mount Olympus purchased a patent from Bakhshi Co. for $1.8 million on January 1, 2015. The patent expires on January 1, 2025, and Mount Olympus is amortizing

> Access the annual financial statements of Andrew Peller Limited for the year ended March 31, 2015, on SEDAR (www.sedar.com) or the company’s website (www.andrewpeller.com). Instructions: Refer to these financial statements and the accompanying notes to

> Berrie Electric Inc. has the following amounts included in its general ledger at December 31, 2017: Instructions: (a) Based on the information provided, calculate the total amount for Berrie to report as intangible assets on its statement of financial

> Selected account information follows for Entertainment Inc. as at December 31, 2017. All the accounts have debit balances. Assume the company uses IFRS when preparing fi nancial statements. Instructions: (a) Identify which items should be classified as

> The following assets have been recognized as items of property, plant, and equipment: 1 . Head office boardroom table and executive chairs 2. Landfill site 3. Escalator in shopping mall 4. Forklift vehicles in a manufacturing plant 5. Stand-alone trainin

> Odyssey Ltd. purchased machinery on January 1, 2017, for $60,000. The machinery is estimated to have a residual value of $6,000 after a useful life of eight years. (a) Calculate the 2017 depreciation expense using the straight line method. (b) Calculate

> Azure Industries Ltd. acquired two copyrights during 2017. One copyright was on a textbook that was developed internally at a cost of $36,000. This textbook is estimated to have a useful life of three years from July 1, 2017, the date it was published. T

> E-Learning Educational Services Inc. incurred the following costs associated with its research facilities. Indicate whether these items are capitalized or expensed in the current year, assuming the company reports under ASPE. Where applicable, indicate h

> On October 1, 2017, Ocean Airways Ltd. purchased a new commercial aircraft for a total cost of $100 million. Included in the total cost are the aircraft’s two engines, at a cost of $10 million each, and the aircraft’s body, which costs $80 million. The e

> Cella Corporation’s statement of financial position shows property, plant, and equipment of $100,000. The notes to its financial statements state that the amount is represented by a cost of $600,000, accumulated depreciation of $300,000, and accumulated

> Extract Corporation, a publicly traded mining company, acquires a mine at a cost of $500,000. Capitalized development costs total $125,000. After the mine is depleted, $75,000 will be spent to restore the property, after which it can be sold for $157,500

> Andeo Corporation purchased a truck at the beginning of 2017 for $48,000. The truck is estimated to have a residual value of $3,000 and a useful life of 275,000 km. It was driven for 52,000 km in 2017 and 65,000 km in 2018. (a) Calculate depreciation exp

> Refer to the 2014 annual report of Canadian Tire Corporation, Limited, available at SEDAR (www.sedar.com) or the company’s website (www. canadiantire.ca). Note that the company provides a 10-year financial review at the end of its annual report. This sum

> se the information for Odyssey Ltd. in BE11-5. (a) Calculate the 2017 depreciation expense using the sum of-the-years’-digits method. (b) Calculate the 2017 depreciation expense using the sum-of-the-years’-digits method, but assuming the machinery was pu

> Use the information for Odyssey Ltd. in BE11-5. (a) Calculate the 2017 depreciation expense using the double declining-balance method. (b) Calculate the 2018 depreciation expense using the double-declining-balance method, but assuming the machinery was p

> Gilles Corp. purchased a piece of equipment on February 1, 2017, for $100,000. The equipment has an estimated useful life of eight years, with a residual value of $25,000, and an estimated physical life of 10 years, with no salvage value. The equipment w

> Chong Corp. purchased a machine on July 1, 2017, for $30,000. Chong paid $200 in title fees and a legal fee of $100 related to the machine. In addition, Chong paid $500 in shipping charges for delivery, and paid $400 to a local contractor to build and wi

> Julip Corporation purchased a 25% interest in Krov Corporation on January 2, 2017, for $1,000. At that time, the carrying amount of Krov’s net assets was $3,600. Any excess of the cost of the investment over Julip’s share of Krov’s carrying amount can be

> Fong Limited purchased an asset at a cost of $45,000 on March 1, 2017. The asset has a useful life of seven years and an estimated residual value of $3,000. For tax purposes, the asset belongs in CCA Class 8, with a rate of 20%. Calculate the CCA for eac