Question: The following information is available from the

> 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&#

> Accounts receivable turnover—calculation and analysis You review the above information for your daycare business and it reveals decreasing profits despite increasing sales. You hire an analyst who highlights several points, including th

> Part of your job is to review customer requests for credit. You have three new credit applications on your desk and part of your analysis requires that the current ratios and quick ratios be compared. a. Complete the following schedule (round to two deci

> The following companies are competing in the same industry where the industry norm for the current ratio is 1.6. Required a. Complete the schedule (round to two decimal places). b. Identify the company with the strongest liquidity position. c. Identify t

> CHECK FIGURES: 3. Book value per common share = $92.00 4. Book value per common share = $90.75 Delta Tech Corporation’s common shares are currently selling on a stock exchange at $85 per share, and a recent balance sheet shows the follo

> Book value per common share; Western Grass Inc. Equity Section of Balance Sheet December 31, 2020. Required Using the information provided, calculate book value per common share assuming: a. There are no dividends in arrears. b. There are three years of

> Spence Resources Inc.’s December 31 incomplete balance sheet information follows along with additional information: Required 1. Prepare a three-year comparative balance sheet for Spence Resources Inc. 2. To evaluate the companyâ&#

> Use the following information to calculate the ratio of pledged assets to secured liabilities for both companies: Which company appears to have the riskier secured debt?

> Trend analysis, profitability ratios (millions of $) Required: Calculate Tia’s Trampolines Inc.’s profitability ratios for 2020 (round calculations to two decimal places). Also identify whether each of Tiaâ€

> The original income statements for ZoomMed Inc. presented the following information when they were first published in 2019, 2020, and 2021: The company also experienced some changes in the number of outstanding common shares over the three years through

> Brainium Technologies showed the following information in its Property, Plant, and Equipment subledger regarding a warehouse. During 2020, it was determined that the original useful life on the warehouse doors should be reduced to a total of 12 years and

> Common-size and trend percentages for a company’s net sales, cost of goods sold, and expenses follow: Required: Determine whether the company’s profit increased, decreased, or remained unchanged during this three-year

> Laura’s Fresh Cooking Inc. began operations on January 1, 2019. Laura’s prepares gourmet dinners and delivers to customers in fresh coolers; customers put them in the oven and have a meal within 30 minutes. The busines

> Refer to the information about Western Environmental Inc. presented in Exercise 16-7. Use the direct method and prepare a statement of cash flows. Data from Exercise 16-7: Required: Use the Western Environmental Inc. information given below to prepare a

> Required: Use the Western Environmental Inc. information given below to prepare a statement of cash flows for the year ended June 30, 2020, using the indirect method. a. A note is retired at carrying value. b. The only changes affecting retained earnings

> Use the following income statement and information about changes in non-cash current assets and current liabilities to present the cash flows from operating activities using the indirect method: Changes in current asset and current liability accounts dur

> Analyzing cash inflows and outflows Required: Which of the three competing corporations is in the strongest relative position as indicated by its comparative statements of cash flows?

> Green Forest Corp.’s 2020 income statement showed the following: profit, $292,600; depreciation expense, building, $43,000; depreciation expense, equipment, $6,630; and gain on sale of equipment, $7,000. An examination of the company’s current assets and

> The account balances for the non-cash current assets and current liabilities of Kid-game Software Inc. are as follows: During 2020, Kid-game Software Inc. reported depreciation expense of $57,000. All purchases and sales are on account. Profit for 2020 w

> Making adjustments to derive cash flow from operating activities (indirect method) Indicate by an X in the appropriate column whether an item is added or subtracted to derive cash flow from operating activities.

> The summarized journal entries below show the total debits and credits to the Zebra Corporation’s Cash account during 2020. Required Use the information to prepare a statement of cash flows for 2020. The cash flow from operating activit

> Pace Oil & Gas Corp. began operations in 2018. Its balance sheet reported the following components of equity on December 31, 2018. The corporation completed these transactions during 2019 and 2020: Required 1. Prepare journal entries to record the tr

> Rosetta Inc.’s records contain the following information about the 2020 cash flows. Required Prepare a statement of cash flows using the direct method and a note describing non-cash investing and financing activities.

> Use the following income statement and information about changes in non-cash current assets and current liabilities to present the cash flows from operating activities using the direct method: Changes in current asset and current liability accounts durin

> In each of the following cases, use the information provided about the 2020 operations of River Bungee Inc. to calculate the indicated cash flow:

> In each of the following cases, use the information provided about the 2020 operations of Prestige Water Corp. to calculate the indicated cash flow:

> The following occurred during the year. Assuming that the company uses the direct method of reporting cash provided by operating activities, indicate the proper accounting treatment for each item by placing an X in the appropriate column.

> The following transactions occurred during the year. Assuming that the company uses the indirect method of reporting cash provided by operating activities, indicate the proper accounting treatment for each transaction listed below by placing an X in the

> You have been asked by the VP of Finance to explain the appropriate accounting treatment for the following series of investments made by Metaphor Investments Inc.: • Purchased 50,000 of the 80,000 shares outstanding for The Natural Pharmacy Inc. • Purch

> The following events are for King Investment Inc.: Required Prepare general journal entries to record each transaction. Round per share calculations to two decimal places.

> The following events are for Toronto Investment Inc.: Required: Prepare general journal entries to record each transaction. Round per share calculations to two decimal places.

> Monkey Mortgage Inc. engaged in the following non-strategic investment transactions during 2020: Required 1. Prepare an amortization schedule for the Jaguar bond showing only 2020 and 2021. 2. Prepare the entries to record the transactions described abov

> Labtech Pharmacy Inc. is authorized to issue an unlimited number of common shares and 100,000 shares of $24 non-cumulative preferred. The company completed the following transactions: Required 1. Prepare general journal entries to record the transactions

> Following are the non-strategic investment transactions of Corona Inc.: Required 1. For each of the bond investments, prepare an amortization schedule showing only 2020 and 2021. 2. Prepare the entries to record the transactions described above. 3. Show

> The cost and fair value of non-strategic investments of International Journalist Corporation on December 31, 2020, and December 31, 2021, are as follows: Required 1. Prepare the fair value adjustment at December 31, 2020, and December 31, 2021, based on

> Pacific Fishing Inc.’s actively traded non-strategic investments as of December 31, 2020, are as follows: Pacific Fishing Inc. had no investments prior to 2020. Required 1. Prepare the fair value adjustment at December 31, 2020, based o

> Prepare entries to record the following non-strategic investment transactions of Wiki Garden Tool Inc. Assume each bond acquired is purchased with the intention to actively trade. Analysis Component: How would the financial statements have been affected

> Prepare entries to record the following non-strategic investment transactions of Arrowhead Investment Corporation. Analysis Component: If the fair value adjusting entry on December 31, 2020, were not recorded, what would the effect be on the income state

> SweetFish Corp. issued bonds with a par value of $820,000 and a five-year life on May 1, 2020. The contract interest rate is 7%. The bonds pay interest on October 31 and April 30. They were issued at a price of $803,164 when the market interest rate was

> Huskey Mining Corporation issued bonds with a par value of $105,000 on January 1, 2020. The annual contract rate on the bonds is 9%, and the interest is paid semiannually. The bonds mature after three years. The annual market interest rate at the date of

> Mindsetta Music Inc. issued bonds on March 1, 2020, with a par value of $300,000. The bonds mature in 15 years and pay 8% annual interest in two semiannual payments. On the issue date, the annual market rate of interest for the bonds turned out to be 10%

> Chinook Inc. has available for issue a $3,200,000 bond due in eight years. Interest at the rate of 6% is to be paid semiannually. Calculate the issue price if the market interest rate is: a. 5.5% b. 6% c. 6.75%

> On October 1, 2020, Eastern Timber Inc. has available for issue $840,000 bonds due in four years. Interest at the rate of 4% is to be paid quarterly. Calculate the issue price if the market interest rate is: a. 5% b. 4% c. 3%

> The balance sheet for QuickStream Inc. reported the following components of equity on December 31, 2020: Common shares, unlimited shares authorized, 100,000 shares issued and outstanding:$ 480,000 Retained earnings: 648,000 Total equity: $1,128,000 The

> Omni Film Corporation had a $1,250,000, 7% bond available for issue on April 1. Interest is to be paid on the last day of each month. On April 14 and 25, bonds with a face value of $890,000 and $360,000, respectively, were issued at par. Record the entri

> Extra Gold Corporation had a $1,270,000, 6% bond available for issue on September 1, 2020. Interest is to be paid quarterly beginning November 30. All of the bonds were issued at par on October 1. Prepare the appropriate entries for: a. October 1, 2020 b

> For Solar Industries and its related but separate financing company Solar Financing Corp, calculate the debt to equity ratio for 2019 and 2020. Explain why there are such significant differences in the ratios.

> On December 31, 2020, a day when the available interest rate was 9%, Valcent Products Inc. leased equipment with an eight-year life. The contract called for an $8,400 annual lease payment at the end of each of the next five years, with the equipment beco

> Use the data in Exercise 14-25 to prepare journal entries that KEC Environmental Corp. would make to record the loan on December 31, 2020, and the four payments starting on December 31, 2021, through the final payment on December 31, 2024. Data from Exe

> On December 31, 2020, KEC Environmental Corp. borrowed $100,000 by signing a four-year, 5% installment note. The note requires four equal payments of accrued interest and principal on December 31 of each year from 2021 through 2024. a. Calculate the size

> Use the data in Exercise 14-23 to prepare journal entries that Sack Port Ventures Inc. would make to record the loan on December 31, 2020, and the four payments starting on December 31, 2021, through the final payment on December 31, 2024. Data from Exe

> On December 31, 2020, Sack Port Ventures Inc. borrowed $90,000 by signing a four-year, 5% installment note. The note requires annual payments of accrued interest and equal amounts of principal on December 31 of each year from 2021 through 2024. a. How mu

> Trilium Gold Inc.’s December 31, 2020, adjusted trial balance shows the following: Required 1. What is the carrying value of the bonds on December 31, 2020? 2. The bonds were converted into 105,000 common shares on January 1, 2021. Jour

> Computalog Inc. showed the following on its December 31, 2020, balance sheet: Bonds payable, convertible: $4,000,000 Less: Unamortized discount: 14,400: $3,985,600 Required 1. Assuming the bonds are convertible into 400,000 common shares, journalize the

> Kangaroo Media Inc. has issued and outstanding a total of 40,000 shares of $7.20 preferred shares and 120,000 of common shares. The company began operations and issued both classes of shares on January 1, 2019. Required 1. Calculate the total dividends t

> Solar Energy Inc. issued a $900,000, 5%, five-year bond on October 1, 2020. Interest is paid annually each October 1. Solar’s year-end is December 31. Required: Using the amortization schedule provided below, record the entry to retire

> On March 1, 2020, Jagger Metal Corp. issued 9% bonds dated January 1, 2020. The bonds have a $902,000 par value, mature in 20 years, and pay interest semiannually on June 30 and December 31. The bonds were sold to investors at their par value plus the tw

> Refer to the amortization schedule prepared in Exercise 14-18. Assume a November 30 year-end. Required Part 1 Record the following entries: a. Issuance of the bonds on October 1, 2020 b. Adjusting entry to accrue bond interest and premium amortization on