Question: Pete’s Propellers Company showed the following

> La Mancha Enterprises completed all of its March 31, 2020, adjustments in preparation for compiling its financial statements, which resulted in the following trial balance. Other information: 1. All accounts have normal balances. 2. $34,200 of the mortga

> The income statement for Weatherford International Inc.’s year ended December 31, 2020, was prepared by an inexperienced bookkeeper. As the new accountant, your immediate priority is to correct the statement. All amounts included in the

> The equity section from the December 31, 2020 balance sheet of Kentucky Corporation appeared as follows: The following transactions occurred during 2021 (assume the retirements were the first ever recorded by Kentucky) Required 1. How many shares were ou

> The following table shows the balances from various accounts in the adjusted trial balance for UniLink Telecom Corp. as of December 31, 2020: Required 1. Assuming that the company’s income tax rate is 30%, what are the tax effects and a

> Pet Boutique Corp. reported $2,952,010 of profit for 2020. On November 2, 2020, it declared and paid the annual preferred dividends of $203,000. On January 1, 2020, Pet Boutique had 104,000 and 520,000 outstanding preferred and common shares, respectivel

> Zen Aerospace Corporation reported the following equity account balances on December 31, 2019: In 2020, the company had the following transactions affecting shareholders and the shareholders’ equity accounts: Required 1. Prepare journal

> AIM Inc. showed the following equity account balances on the December 31, 2019, balance sheet: Common shares, unlimited authorized shares, 640,000 shares issued and outstanding = $5,760,000 Retained earnings = 2,130,000 During 2020, the following selecte

> Range Energy Corp.’s financial statements for the current year ended December 31, 2020, have been completed and submitted to you for review. The equity account balances a year ago, at December 31, 2019, are as follows: The only share tr

> The equity section from the December 31, 2020 and 2021, balance sheets of Westburne Corporation appeared as follows: The following transactions occurred during 2021 (assume the retirements were the first ever recorded by Westburne): Required 1. How many

> Except for the earnings per share statistics, the 2021, 2020, and 2019 income statements for Ace Group Inc. were originally presented as follows: Required 1. Calculate the 11 missing amounts. 2. Calculate the weighted-average number of common shares out

> The balance sheet for Tactex Controls Inc., provincially incorporated in 2018, reported the following components of equity on December 31, 2019. In 2020 and 2021, the company had the following transactions affecting shareholders and the equity accounts:

> Venir Exchange Corp. had the following equity account balances at December 31, 2019: On November 1, 2020, the board of directors declared and paid the current year’s cash dividend on the preferred shares plus the two years of dividends

> Hammond Manufacturing Inc. was legally incorporated on January 2, 2020. Its articles of incorporation granted it the right to issue an unlimited number of common shares and 100,000 shares of $14.40 non-cumulative preferred shares. The following transacti

> CHECK FIGURES: 2. Retained earnings, December 31, 2021 = $394,400; 3. Total equity = $861,680 The balance sheet for Umi Sustainable Seafood Inc. reported the following components of equity on December 31, 2019: In 2020, Umi had the following transactions

> Garda World Security Corporation has the following shares, taken from the equity section of its balance sheet dated December 31, 2020. During its first three years of operations, Garda World Security Corporation declared and paid total dividends as shown

> Analyzing equity, dividend allocation Use the information provided below to answer the following questions. Other information: • All of the shares were issued during the first year of operations (year ended October 31, 2019). â&#1

> Convertible preferred shares Walking Bear Resources Inc. Equity Section of the Balance Sheet March 31, 2020 Required Refer to the equity section above. Assume that the preferred are convertible into common at a rate of eight common shares for each share

> The equity sections from the 2020 and 2021 balance sheets of Fab-Form Industries Inc. appeared as follows: On March 16, June 15, September 5, and November 22, 2021, the board of directors declared $0.20 per share cash dividends on the outstanding common

> CHECK FIGURES: Total assets = $546,400; Total equity = $301,800 Required: Using the information from the alphabetized post-closing trial balance below, prepare a classified balance sheet for Sassy Pharmaceuticals Inc. as at March 31, 2020. Be sure to use

> Trish Craig and Ted Smith have a bio-energy and consulting business and share profit and losses in a 3:1 ratio. They decide to liquidate their partnership on December 31, 2020, when the balance sheet shows the following: Required Prepare the entries on D

> Lui, Montavo, and Johnson plan to liquidate their Premium Pool and Spa business. They have always shared profit and losses in a 1:4:5 ratio, and on the day of the liquidation their balance sheet appeared as follows: Required: Part 1 Under the assumption

> Gale, McLean, and Lux are partners of Burgers and Brew Company with capital balances as follows: Gale, $97,000; McLean, $95,000; and Lux, $160,000. The partners share profit and losses in a 3:2:5 ratio. McLean decides to withdraw from the partnership. Pr

> After returning from vacation, the accountant of Online Hearing Inc. was dismayed to discover that the income statement for the year ended December 31, 2020, was prepared incorrectly. All amounts included in the statement are before tax (assume a rate of

> On June 1, 2020, Jill Bow and Aisha Adams formed a partnership to open a gluten-free commercial bakery, contributing $292,000 cash and $384,000 of equipment, respectively. The partnership also assumed responsibility for a $52,000 note payable associated

> On April 1, 2019, Guy Comeau and Amelie Lavoi formed a partnership in Ontario. Net Income during the year was $560,000 and was in the Income Summary account. On April 1, 2020 Travis Roberts invested $138,000 and was admitted to the partnership for a 20%

> Zeller, Acker, and Benton are partners with capital balances as follows: Zeller, $95,000; Acker, $80,000; and Benton, $158,000. The partners share profit and losses in a 3:2:5 ratio. Dent is admitted to the partnership on May 1, 2020, with a 25% equity.

> Ben Conway, Ida Chan, and Clair Scott formed CCS Consulting by making capital contributions of $245,000, $280,000, and $175,000, respectively. They anticipate annual profit of $360,000 and are considering the following alternative plans of sharing profit

> Phillip and Case are in the process of forming a partnership to import Belgian chocolates, to which Phillip will contribute one-third time and Case full time. They have discussed the following alternative plans for sharing profit and losses. a. In the ra

> Jenkins, Willis, and Trent invested $100,000, $175,000, and $225,000, respectively, in a partnership. During its first year, the firm recorded profit of $300,000. Required: Prepare entries to close the firm’s Income Summary account as of December 31 and

> Eyelash Extension Co.’s liabilities as reported on the June 30, 2020, balance sheet are shown below, along with its statement of changes in equity. Jan is selling the business. A potential buyer has hired an accountant to review the acc

> Western Refrigeration borrowed $230,000 to purchase inventory on September 15, 2020 for 45 days at 6% interest by signing a note. On December 6, 2020, Western Refrigeration sold an industrial fridge for cash of $12,000 (cost $9,400) with a two-year parts

> Modern Electronics Company purchases merchandise inventory from several suppliers. On April 1, 2020, Modern Electronics purchased from Speedy Supplies $100,000 of inventory on account. On May 15, 2020, Modern Electronics sold inventory to a Jones Apartme

> White Water Adventure is a travel adventure business that operates from about April to October each year. The company has an outstanding reputation for the quality of its tours and as a result pre-books customers a full year in advance. Customers must pa

> The equity section from the December 31, 2020 balance sheet of Candace Candy Corporation appeared as follows: The following transactions occurred during 2021 (assume the retirements were the first ever recorded by Candace Candy): Feb. 10 A $1.50 per shar

> Okanagan Refrigeration manufactures and markets commercial refrigeration systems for food trucks and specialized transport trucks. It was disclosed in notes to the company’s financial statements that estimated warranty costs are accrued at the time produ

> On November 10, 2020, Singh Electronics began to buy and resell scanners for $55 each. Singh uses the perpetual system to account for inventories. The scanners are covered under a warranty that requires the company to replace any non-working scanner with

> Zing Cell Phone Company entered into the following transactions involving current liabilities during 2020 and 2021: Required 1. Determine the maturity dates of the three notes just described. 2. Present journal entries for each of the preceding dates.

> Quebec Construction Company purchased some equipment on September 10, 2020, that had a cost of $190,000 (ignore GST/PST). Show the journal entries that would record this purchase and payment under these three separate situations: a. The company paid cash

> Golden Wedding Dress Company designs custom wedding dresses for brides to be. The person preparing the adjusting entries at year-end was unable to complete the adjustments due to illness. You have been given the following unadjusted trial balance along w

> On January 2, 2020, Brook Company acquired machinery by issuing a 3%, $360,000 note due in five years on December 31, 2024. Annual payments are $78,608 each December 31. The payment schedule is: Required: Using the information provided, complete the foll

> Ocean Fishers Ltd. had a 22-foot fishing boat with an inboard motor that was purchased on April 9, 2012, for $77,000. The PPE subledger shows the following information regarding the boat: On June 27, 2020, $63,000 cash was paid for a new motor to replace

> Copper Explorations recently acquired the rights to mine a new site. Equipment and a truck were purchased to begin mining operations at the site. Details of the mining assets follow: Copper’s year-end is December 31 and it uses the stra

> On October 1, 2020, Kingsway Broadcasting purchased for $288,000 the copyright to publish the music composed by a local Celtic group. Kingsway expects the music to be sold over the next three years. The company uses the straight-line method to amortize i

> Zephyr Minerals completed the following transactions involving machinery. Machine No. 1550 was purchased for cash on April 1, 2020, at an installed cost of $52,900. Its useful life was estimated to be six years with a $4,300 trade-in value. Straight-line

> The following table shows the balances from various accounts in the adjusted trial balance for Decoma International Corp. as of December 31, 2020: Required 1. Assuming that the company’s income tax rate is 25%, what are the tax effects

> In 2020, Staged Home Ltd. completed the following transactions involving delivery trucks: July 5: Traded in an old truck and paid $25,600 in cash for furniture. The accounting records on July 1 showed the cost of the old truck at $36,000 and related accu

> Vita Water purchased a used machine for $116,900 on January 2, 2020. It was repaired the next day at a cost of $4,788 and installed on a new platform that cost $1,512. The company predicted that the machine would be used for six years and would then have

> Endblast Productions showed the following selected asset balances on December 31, 2020: Required: Prepare the entries for each of the following (round final calculations to the nearest whole dollar). 1. The land and building were sold on September 27, 20

> Safety-First Company completed all of its October 31, 2020, adjustments in preparation for preparing its financial statements, which resulted in the following trial balance. Other information: 1. All accounts have normal balances. 2. $26,400 of the note

> The December 31, 2020, adjusted trial balance of Maritime Manufacturing showed the following information: Early in 2021, the company made a decision to stop making the items produced by the machinery and buy the items instead. As a result, the remaining

> NeverLate Ltd. completed the following transactions involving delivery trucks: Required: Prepare journal entries to record the transactions.

> At December 31, 2020, Halifax Servicing’s balance sheet showed capital asset information as detailed in the schedule below. Halifax calculates depreciation to the nearest whole month. Required Complete the schedule (round only your fina

> A machine that cost $504,000, with a four-year life and an estimated $48,000 residual value, was installed in Haley Company’s factory on September 1, 2020. The factory manager estimated that the machine would produce 475,000 units of pr

> Logic Co. recently negotiated a lump-sum purchase of several assets from a company that was going out of business. The purchase was completed on March 1, 2020, at a total cash price of $1,260,000 and included a building, land, certain land improvements,

> Fitz Products Inc. reported $1,075,049 profit in 2020 and declared preferred dividends of $75,100. The following changes in common shares outstanding occurred during the year. Jan. 1 78,000 common shares were outstanding. Mar. 1 Declared and issued a 30%

> CHECK FIGURES: 1. Dr. Depreciation Expense, Building $53,000. 1. Dr. Depreciation Expense, Equipment $77,184. 2. Total PPE = $1,144,736 Required 1. Calculate and record depreciation for the year just ended April 30, 2021, for both the building and equipm

> Refer to the information in Problem 9-5A. Redo the question assuming that depreciation for partial periods is calculated using the half-year convention. Data from Problem 9-5: West Coast Tours runs boat tours along the West Coast of British Columbia. On

> West Coast Tours runs boat tours along the West Coast of British Columbia. On March 5, 2020, it purchased, with cash, a cruising boat for $828,000, having a useful life of 10 years or 13,250 hours, with a residual value of $192,000. The companyâ&#1

> Yorkton Company purchased for $415,000 equipment having an estimated useful life of 10 years with an estimated residual value of $25,000. Depreciation is calculated to the nearest month. The company has a December 31 year-end. Required: Complete the fol

> On January 2, 2018, Country Lumber installed a computerized machine in its factory at a cost of $168,000. The machine’s useful life was estimated at four years or a total of 190,000 units with a $35,000 trade in value. Country Lumber&ac

> 1. Classification of current and non-current liabilities is important for the following reason(s): a. Allows external users to assess whether the company has the ability to pay, enabling better financial analysis and decision making b. Internal decision

> 1. Two features distinguishing property, plant, and equipment (PPE) from other assets are that: a. PPE is used in business operations to generate revenue and provides benefits for more than one accounting period. b. PPE is acquired through a contract and

> 1. What are the four key building blocks of financial statement analysis? a. liquidity and efficiency, solvency, profitability, and market b. liquidity and efficiency, solvency, profitability, and industry c. liquidity and efficiency, solvency, profitabi

> 1. Financial statement users are concerned with the statement of cash flows for which of the following reasons: a. It helps users evaluate liquidity and ability to generate resources to repay liabilities b. It helps users evaluate solvency, including the

> 1. Corporations may choose to engage in a non-strategic investment in debt or shares for which of the following reasons: a. To earn greater interest or dividend income on available excess cash b. To earn investment income over the original purchase price

> The equity accounts for Kalimantan Corp. showed the following balances on December 31, 2019: The company completed these transactions during 2020: Jan. 10 Issued 20,000 common shares at $9.60 cash per share. 15 The directors declared a 10% share dividend

> 1. Which of the following terms does not refer to the stated coupon rate of the bond? a. Nominal Rate b. Market Rate c. Contract Rate d. All of the above. 2. Financial leverage is an important finance term that results from which of the following scenar

> 1. A share dividend involves the distribution of which of the following items: a. Shares of the company’s stock without receiving any payment in return b. Income of the company based on the amount declared by the board of directors c. Equity from the com

> 1. Which of the following is not an advantage of the corporate form for organizations: a. Ownership rights are easily transferable b. Continuous life c. Corporate taxation d. Ease of capital accumulation 2. The costs of organizing a corporation are: a.

> 1. Which of the following items should not be included in the partnership agreement: a. Names and contributions of each partner b. Rights and duties expected to be carried out by each partner c. Allocation of profit and losses d. Information on the pers

> Required Answer the following questions by referring to the December 31, 2017, balance sheets for each of WestJet and Spin Master in Appendix II. a. WestJet shows Advance ticket sales of $695,111 (thousand) under current liabilities. Explain what this is

> On August 31, 2020, World Travel Consulting showed the following adjusted account balances in alphabetical order: Required 1. Prepare the liability section of the balance sheet at August 31, 2020 based on the above trial balance. 2. Prepare a corrected b

> Refer to the financial statements for each of Spin Master, Indigo, and WestJet. Required Answer the following questions. Part 1 The *December 31, 2017, balance sheet for Spin Master reports $32,978 (thousand) of PPE. a. What does the $32,978 (thousand) r

> Times TeleCom’s PPE subledger at January 1, 2020, appeared as follows: Required a. Complete the PPE subledger; round calculations to the nearest dollar. b. Using the information from the PPE subledger completed in part (a) and the follo

> Refer to the financial statements for Spin Master, WestJet, Telus, and Indigo. Calculate the following ratios for 2017 and 2016 for each company, indicating whether the change was favourable or unfavourable (round calculations to two decimal places). Fo

> Drinkwater Inc. reported the following information: Other information: 1. No shares were issued during the years ended March 31, 2020 and 2019. 2. No dividends were declared or paid during the years ended March 31, 2020 and 2019. 3. The market values per

> Ozzi Development Inc. showed the following equity account balances on the December 31, 2019, balance sheet: Common shares, unlimited authorized shares, 660,000 shares issued and outstanding = $3,960,000 Retained earnings = 2,030,000 During 2020, the foll

> Refer to WestJet’s statement of cash flows and answer the following questions. a. Identify WestJet’s largest cash outflow during 2017. b. What was the largest cash inflow during 2017? c. Under the operating section of the statement of cash flows, WestJet

> Wong Corporation began operations on January 1, 2019. Its adjusted trial balance at December 31, 2019 and 2020, is shown below along with some other information. Other information regarding Wong Corporation and its activities during 2020: a. Assume all a

> Canadian Tire, a major Canadian retailer, reported the following in its December 30, 2017, financial statements: No other investments were reported. Required 1. On which financial statement would the above information have appeared? 2. Are the investment

> Delta Corporation showed the following adjusted trial balance at its year-end, December 31, 2020: Required Using the information provided, prepare a single-step income statement and a classified balance sheet, in thousands. Analysis Component: Explain th

> Required: Answer the following questions by referring to the 2017 financial statements for each of Spin Master and WestJet. 1. How much of Spin Master’s total assets are financed by debt? by equity? 2. How much total debt does WestJet report on its balan

> ZedCon Inc. intends to raise $10,000,000 for the purpose of expanding operations internationally. Two options are available: • Plan 1: Issue $10,000,000 of 5% bonds payable due in 2030, or • Plan 2: Issue 100,000 commo

> Refer to the financial statements. Part 1 Required Answer the following questions regarding Indigo. a. Did retained earnings increase or decrease from April 1, 2017 to March 31, 2018? b. On what statement can you find Indigo’s earnings per share? Show th

> CHECK FIGURES: 1. Profit = $393,400; 2. Total assets = $2,851,250; Total equity = $2,614,650 LR Enterprises Inc. had the following equity account balances at December 31, 2019: Sales during 2020 totalled $1,560,000 and operating expenses were $998,000. A

> WestJet is a a Canadian company with clear focus on its employees and customers. Reference the financial statements in Appendix II, particularly the link to the notes, referring to Note 11 and 12. Below are selected sections presented for your review: Re

> Barry Bowtie incorporated his business under the name BowTie Fishing Expeditions Corp. on March 1, 2020. It was authorized to issue 30,000 $2 cumulative preferred shares and an unlimited number of common shares. During March, the following equity transac

> Tropical Vacation Inc. has tentatively prepared its financial statements for the year ended December 31, 2020, and has submitted them to you for review. The equity account balances at December 31, 2020, are as follows: The company’s 202

> Refer to the financial statements for Spin Master and WestJet. Required: Answer the following questions. 1. Is Spin Master a partnership? Explain why or why not. 2. Identify whether each of Indigo, Telus, and WestJet is a sole proprietorship, partnership

> Les Waruck, Kim Chau, and Leena Manta formed a partnership, WCM Sales, on January 11, 2020, by investing $68,250, $109,200, and $95,550, respectively. The partnership agreement states that profits and losses are to be shared on the basis of a salary allo

> On January 1, 2020, Bona Vista Co. purchased land, a building, equipment, and tools for a total price of $4,320,000, paying cash of $1,104,000 and borrowing the balance from the bank. The bank appraiser valued the assets as follows: $1,152,000 for the la

> On April 12, 2020, Prism Ltd., a camera lens manufacturer, paid cash of $552,375 for real estate plus $29,400 cash in closing costs. The real estate included land appraised at $249,480; land improvements appraised at $83,160; and a building appraised at

> After planning to build a new plant, Kallisto Backpack Manufacturing purchased a large lot on which a small building was located. The negotiated purchase price for this real estate was $1,200,000 for the lot plus $480,000 for the building. The company pa

> Edmonton Ice Rink purchased a Zamboni ice-resurfacing machine for $28,000, terms 1/10, n/60, FOB shipping point. Edmonton Ice received a freight invoice from On-time Delivery for $450. Edmonton Ice took advantage of the discount. The Zamboni required a s

> Solvency ratios—calculation and analysis Required: Calculate Focus Metals’ solvency ratios for 2019 and 2020 (round answers to two decimal places). Analysis Component: Identify whether the change in each ratio from 201

> Liquidity and efficiency ratios—calculation and analysis Required: Calculate Airspace’s liquidity and efficiency ratios for 2020 and 2019 (round answers to two decimal places). Analysis Component: Identify whether the

> Refer to the information in Exercise 17-6 and calculate the days’ sales in inventory for Furniture Retailers and Custom Furniture Corp for 2020 (round to two decimal places). Which company has the more favourable ratio? Explain why. Da

> Inventory turnover—calculation and analysis a. Calculate the inventory turnover for 2020 for each company (round to two decimal places). b. Can you compare these companies? Explain. c. Review the turnover for Fresh-Cut Flowers Inc. Does

> The equity sections from the December 31, 2019 and 2020, balance sheets of Synergy Acquisition Corporation appeared as follows: The following occurred during 2020: Feb. 15 A $0.48 per share cash dividend was declared, and the date of record was five days

> Western Windows constructs and installs windows for new homes. The sales staff are having a meeting and reviewing the following information to determine how to help reduce days’ sales uncollected. Required a. Calculate the daysâ&#