All Related Questions of Financial Statements

Q: Ali Reiners, a new controller of Luftsa Corp., is preparing

Ali Reiners, a new controller of Luftsa Corp., is preparing the financial statements for the year ended December 31, 2017. Luftsa is a publicly traded entity and therefore follows IFRS. Ali has found...

Q: Sanderson Inc., a pharmaceutical distribution firm, is providing a BMW

Sanderson Inc., a pharmaceutical distribution firm, is providing a BMW car for its chief executive officer as part of a remuneration package. Sanderson has a calendar year end, issues financial statem...

Q: Use the information for P20-21. Instructions:

Use the information for P20-21. Instructions: Under Option 2: (a) Assume that at the signing of the original lease, Sanderson Inc. has no intention of exercising the lease renewal. Determine the clas...

Q: You are a senior auditor auditing the December 31, 2017 financial

You are a senior auditor auditing the December 31, 2017 financial statements of Hoang, Inc., a manufacturer of novelties and party favors and a user of ASPE. During your inspection of the company gara...

Q: Hamilton Airlines is faced with two situations that need to be resolved

Hamilton Airlines is faced with two situations that need to be resolved before the financial statements for the company’s year ended December 31, 2017 can be issued. 1. The airline is being sued for $...

Q: In preparing Sahoto Corporation’s December 31, 2017 financial statements under ASPE

In preparing Sahoto Corporation’s December 31, 2017 financial statements under ASPE, the vice-president, finance, is trying to determine the proper accounting treatment for each of the following situa...

Q: Ramirez Inc., a publishing company, is preparing its December 31

Ramirez Inc., a publishing company, is preparing its December 31, 2017 financial statements and must determine the proper accounting treatment for the following situations. Ramirez has retained your f...

Q: Adventureland Incorporated purchased metal to build a new roller coaster on December

Adventureland Incorporated purchased metal to build a new roller coaster on December 31, 2017. Adventureland provided a $500,000 down payment and agreed to pay the balance in equal instalments of $200...

Q: Four independent situations follow: 1. On March 1,

Four independent situations follow: 1. On March 1, 2017, Wilkie Inc. issued $4 million of 9% bonds at 103 plus accrued interest. The bonds are dated January 1, 2017 and pay interest semi-annually on J...

Q: On December 5, 2013, the Toronto-Dominion Bank (

On December 5, 2013, the Toronto-Dominion Bank (TD) announced, and on January 31, 2014 the bank paid, a stock dividend of one common share for each common share issued and outstanding. Access TD’s Dec...

Q: On January 1, 2017, Batonica Limited issued a $1

On January 1, 2017, Batonica Limited issued a $1.2-million, five-year, zero-interest-bearing note to Northern Savings Bank. The note was issued to yield 8% annual interest. Unfortunately, during 2017...

Q: Daniel Perkins is the sole shareholder of Perkins Inc., which is

Daniel Perkins is the sole shareholder of Perkins Inc., which is currently under bankruptcy court protection. As a debtor in possession, he has negotiated a revised loan agreement with United Bank. Pe...

Q: The following amortization and interest schedule is for the issuance of 10

The following amortization and interest schedule is for the issuance of 10-year bonds by Capulet Corporation on January 1, 2017 and the subsequent interest payments and charges. The companyâ...

Q: Venezuela Inc. is building a new hockey arena at a cost

Venezuela Inc. is building a new hockey arena at a cost of $2.5 million. It received a down payment of $500,000 from local businesses to support the project, and now needs to borrow $2 million to comp...

Q: Assume that each item on the following list would have a material

Assume that each item on the following list would have a material effect on the financial statements of a private enterprise in the current year: 1. A change to the income taxes payable method from th...

Q: Jeremiah Limited issued 10-year, 7% debentures with a

Jeremiah Limited issued 10-year, 7% debentures with a face value of $2 million on January 1, 2010. The proceeds received were $1.7 million. The discount was amortized on the straight-line basis over t...

Q: Access the audited annual financial statements of Rogers Sugar Inc. for

Access the audited annual financial statements of Rogers Sugar Inc. for the year ended October 3, 2015 from SEDAR (www.sedar.com) or the company’s website. Instructions: (a) Identify the components o...

Q: Gateway Corporation has outstanding 200,000 common shares that were issued

Gateway Corporation has outstanding 200,000 common shares that were issued at $10 per share. The balances at January 1, 2017 were $21 million in its Retained Earnings account; $4.3 million in its Cont...

Q: Rocky Mountain Corp. currently has an issued debenture outstanding with Abbra

Rocky Mountain Corp. currently has an issued debenture outstanding with Abbra Bank. The note has a principal of $2 million, was issued at face value, and interest is payable at 7%. The term of the deb...

Q: Loretta Corporation, a publicly traded company, is preparing the comparative

Loretta Corporation, a publicly traded company, is preparing the comparative financial statements to be included in the annual report to shareholders. Loretta’s fiscal year ends May 31. The following...

Q: The 2014 financial statements (for its 53-week period ended

The 2014 financial statements (for its 53-week period ended January 3, 2015) and 10-year financial review of Canadian Tire Corporation, Limited can be found at www.sedar.com or on the company’s websit...

Q: Bryce Corporation is preparing the comparative financial statements for the annual report

Bryce Corporation is preparing the comparative financial statements for the annual report to its shareholders for the fiscal years ended May 31, 2017 and May 31, 2018. The income from operations was $...

Q: You have been engaged to review the financial statements of Walsh Corporation

You have been engaged to review the financial statements of Walsh Corporation. In the course of your examination of the work of the bookkeeper hired during the year that just ended, you noticed a numb...

Q: A partial trial balance of Lindy Corporation at December 31, 2017

A partial trial balance of Lindy Corporation at December 31, 2017 follows: Additional adjusting data: 1. A physical count of supplies on hand on December 31, 2017 totaled $3,400. Through an oversigh...

Q: Neilson Tool Corporation’s December 31 year-end financial statements contained the

Neilson Tool Corporation’s December 31 year-end financial statements contained the following errors: An insurance premium of $66,000 covering the years 2016, 2017, and 2018 was pre...

Q: Access the financial statements of Saskatoon-based Potash Corporation of Saskatchewan

Access the financial statements of Saskatoon-based Potash Corporation of Saskatchewan Inc. for its year ended December 31, 2014 from the company’s website or SEDAR (www.sedar.com). PotashCorp is a wel...

Q: Bennett Corp., which began operations in January 2014, follows IFRS

Bennett Corp., which began operations in January 2014, follows IFRS and is subject to a 30% income tax rate. In 2017, the following events took place: 1. The company switched from the zero-profit meth...

Q: Linden Corporation started operations on January 1, 2012, and has

Linden Corporation started operations on January 1, 2012, and has used the FIFO cost formula since its inception. In 2018, it decides to switch to the weighted average cost formula. You are provided w...

Q: Golden Properties Corporation purchased a parcel of land in March 2016 for

Golden Properties Corporation purchased a parcel of land in March 2016 for $1 million with the intent to construct a building on the property in the near future. At the time of purchase, Golden applie...

Q: Access the financial statements of Loblaw Companies Limited for its year ended

Access the financial statements of Loblaw Companies Limited for its year ended January 3, 2015. The statements are available on the company’s website or SEDAR (www.sedar.com). Instructions: (a) Lobla...

Q: Kelly decided to invest in Lime, Inc, common stock after

Kelly decided to invest in Lime, Inc, common stock after reviewing Lime,s public disclosures， including recent financial statements and a number of process releases issued by Lime. On August 7, 2016,...

Q: Jeffrey Boyd, the president of Eagle Furniture Company (average annual

Jeffrey Boyd, the president of Eagle Furniture Company (average annual gross receipts of $30 million), has prepared the company's financial statements and income tax returns for the past 15 years. In...

Q: Vertical analysis is a more direct method than horizontal analysis in focusing

Vertical analysis is a more direct method than horizontal analysis in focusing on changes in financial statements from one period to another.

Q: For each of the following, identify whether the evidence would be

For each of the following, identify whether the evidence would be classified as testimonial evidence, documentary evidence, physical evidence, or personal observation. a. Surveillance b. Tire marks...

Q: What is the significance of unexplained changes in financial statements in detecting

What is the significance of unexplained changes in financial statements in detecting fraud?

Q: Why do you think it is easier for top management to manipulate

Why do you think it is easier for top management to manipulate the financial statements than for other individuals in an organization?

Q: Dennis Jones, an old college friend, contacted you last week

Dennis Jones, an old college friend, contacted you last week Dennis owns several car washes, and he believes that financial statement fraud may be occurring. (He pays each car wash manager a bonus if...

Q: As CEO of your company, you've been going over your financial

As CEO of your company, you've been going over your financial statements and have noticed something disturbing. You perform a horizontal analysis and find that sales have been increasing at a rate of...

Q: James Watkins, an ambitious 22-year-old, started

James Watkins, an ambitious 22-year-old, started an entertainment business called Best Club after he graduated from California State University. Best Club initially was a business failure because Jame...

Q: Code of Ethics ABC Enterprises has developed the following code of ethics

Code of Ethics ABC Enterprises has developed the following code of ethics: Corporate Governance Code of Ethics for Financial Professionals This Code of Ethics for Financial Professionals (the "Code of...

Q: Unintentional errors in financial statements are a form of fraud.

Unintentional errors in financial statements are a form of fraud.

Q: 1. When detecting fraud, it is important that fraud investigators

1. When detecting fraud, it is important that fraud investigators: a. Remain objective and neutral b. Assume guilt. c. Assume innocence. d. None of the above. 2. Data-driven fraud detection: a....

Q: 1. Data-driven fraud detection can pay large dividends and

1. Data-driven fraud detection can pay large dividends and is an effective way to reduce the cost of fraud in any organization. 2. Unexplained changes are common in financial statements. 3. Balanc...

Q: Some people believe that the audit industry has fallen out of touch

Some people believe that the audit industry has fallen out of touch with the realities of business. They believe that accounting standards were developed for a manufacturing environment and are not fi...

Q: Mendoza is considering investing in IBM. However, he is captivated

Mendoza is considering investing in IBM. However, he is captivated by IBM's growth. IBM had made a remarkable change from a struggling company to a leading company in the personal computer market. Men...

Q: One of the most controversial topics to affect the accounting profession has

One of the most controversial topics to affect the accounting profession has been that of earnings management. Companies have been trying to manage their earnings to match analysts' projections. While...

Q: Go to the IBM company's Web site (www.ibm.

Go to the IBM company's Web site (www.ibm.com) and search for "financial reporting". Find the recent annual report. In the notes to the financial statements, read the significant accounting policies c...

Q: Why are financial statements important to the effective operation of capital markets

Why are financial statements important to the effective operation of capital markets?

Q: 1. The most common account(s) manipulated when perpetrating

1. The most common account(s) manipulated when perpetrating financial statement fraud are: a. Expenses. b. Inventory. c. Revenues. d. Accounts Payable. 2. Why might a company want to understate...

Q: 1. Which of the following is not an inventory-related

1. Which of the following is not an inventory-related documentary symptom? a. Duplicate purchase orders. b. Missing inventory during inventory counts. c. Unsupported inventory sales transactions....

Q: 1. Which of the following is a primary type of transaction

1. Which of the following is a primary type of transaction that can create liabilities for a company? a. Purchasing inventory. b. Borrowing money. c. Selling purchased goods. d. Leasing assets. e....

Q: Pablo is studying financial statements to decide which companies would be wise

Pablo is studying financial statements to decide which companies would be wise investments. Pablo identifies Jawanna Corporation as having abnormally high financial ratios compared with other companie...

Q: Financial statements are the end product of the accounting cycle and are

Financial statements are the end product of the accounting cycle and are used by investors to make informed decisions. They can be analyzed to help determine if there are any fraudulent activities in...

Q: John is the manager of a small computer sales and support chain

John is the manager of a small computer sales and support chain. He has stores located throughout the state of California and is in strong competition with all of the major computer providers within t...

Q: In 2005, the SEC filed a civil action suit against Samuel

In 2005, the SEC filed a civil action suit against Samuel Israel III and Daniel E. Marino, managers of a group of hedge funds known as the Bayou Funds. The SEC alleged that Israel and Marino defrauded...

Q: ABCDE Technologies, Inc., designs, manufactures, and markets an

ABCDE Technologies, Inc., designs, manufactures, and markets an extensive line of PC cards. The company sells its PC cards primarily to original equipment manufacturers (OEMs) for industrial and comme...

Q: In its 2001 annual report, investors of Adelphia Communications were startled

In its 2001 annual report, investors of Adelphia Communications were startled to find a footnote in its financial statements that reported the company had guaranteed as much as $2.7 billion in loans t...

Q: Introduction Home Safety, Inc.'s management has been trying for

Introduction Home Safety, Inc.'s management has been trying for months to acquire one of its largest competitors in the home security industry- LockIt-Up Company. Before agreeing to the acquisition, H...

Q: 1. Focusing on changes in financial statements from period to period

1. Focusing on changes in financial statements from period to period can help identify analytical fraud symptoms. 2. Controls over inventory should be closely examined when searching for fraud sympt...

Q: You have been hired as a fraud auditor to examine the assets

You have been hired as a fraud auditor to examine the assets of a company that recently filed for Chapter 11 bankruptcy. The company manufactures and sells circuit boards for children's computerized t...

Q: Merrion Products Limited is a company owned by the Carroll family.

Merrion Products Limited is a company owned by the Carroll family. The company manufactures hand-made chocolate biscuits from imported South American cocoa, which are sold to a small number of large r...

Q: This case study is taken from Ducker, J., Head,

This case study is taken from Ducker, J., Head, A., McDonnell, B., O'Brien, R. and Richardson, S. (1998), A Creative Approach to Management Accounting: Case Studies in Management Accounting and Contro...

Q: Part 1. Whitlow & Company is a brokerage firm registered under

Part 1. Whitlow & Company is a brokerage firm registered under the Securities Exchange Act of 1934. The act requires such a brokerage firm to file audited financial statements with the SEC annually. M...

Q: The following are five independent situations. 1. Joanie Brogan

The following are five independent situations. 1. Joanie Brogan is a partner in an audit firm that operates as a limited liability partnership (LLP). The firm has been sued for an alleged audit failur...

Q: Siva Kumar and Vera Collier are friends who are employed by different

Siva Kumar and Vera Collier are friends who are employed by different CPA firms. One day during lunch they are discussing the importance of internal control in determining the amount of audit evidence...

Q: The following questions concern CPA firms’ liability under common law or statutory

The following questions concern CPA firms’ liability under common law or statutory law. Choose the best response. a. Which of the following elements is required to be proven by the plaintiff to hold a...

Q: The following questions deal with assurance services and types of audits.

The following questions deal with assurance services and types of audits. Choose the best response. a. Which of the following is considered an assurance engagement? (1) Bookkeeping (2) Preparation (3)...

Q: The following independent scenarios describe auditor behavior on an audit engagement.

The following independent scenarios describe auditor behavior on an audit engagement. 1. The audit engagement partner, Marc Johnson, recently received a subpoena for workpapers related to an audit eng...

Q: The following questions concern auditor responsibilities related to the identification and assessment

The following questions concern auditor responsibilities related to the identification and assessment of fraud risk. Choose the best response. a. While performing a preliminary assessment for a new cl...

Q: The following questions concern audit reports other than unmodified opinion audit reports

The following questions concern audit reports other than unmodified opinion audit reports with standard wording. Choose the best response. a. As compared to an unmodified opinion, an opinion qualified...

Q: The following questions concern auditor responsibilities in an audit of financial statements

The following questions concern auditor responsibilities in an audit of financial statements. Choose the best response. a. The auditor’s responsibility regarding material misstatements caused by fraud...

Q: The PCAOB issues audit practice alerts to highlight new, emerging,

The PCAOB issues audit practice alerts to highlight new, emerging, or otherwise noteworthy circumstances. Revenue is the largest account in the financial statements for many companies, and many fraudu...

Q: PCAOB Rule 3211, Auditor Reporting of Certain Audit Participants, requires

PCAOB Rule 3211, Auditor Reporting of Certain Audit Participants, requires that an audit firm file a form, referred to as Form AP, for each initial issuance of an audit report. On Form AP, the audit f...

Q: The PCAOB’s recently revised auditor reporting standard includes a requirement for the

The PCAOB’s recently revised auditor reporting standard includes a requirement for the auditor to communicate critical audit matters. Critical audit matters include those matters during the audit that...

Q: The IAASB recently revised its standards related to audit reporting. ISA

The IAASB recently revised its standards related to audit reporting. ISA 700 (Revised), Forming an Opinion and Reporting on Financial Statements, requires the auditor’s report to include the following...

Q: You have been asked to make a presentation in your International Business

You have been asked to make a presentation in your International Business class about how globalization is impacting the auditing profession. In preparation, you met with your auditing professor and d...

Q: For each engagement described below, indicate whether the engagement is likely

For each engagement described below, indicate whether the engagement is likely to be conducted under international auditing standards, AICPA audit in standards, or PCAOB auditing standards. a. An audi...

Q: The following are independent situations for which you will recommend an appropriate

The following are independent situations for which you will recommend an appropriate audit report: 1. Subsequent to the date of the financial statements as part of his post-balance sheet date audit pr...

Q: The following relate to auditors’ independence: a. Why is

The following relate to auditors’ independence: a. Why is independence so essential for auditors? b. Compare the importance of independence of CPAs with that of other professionals, such as attorneys....

Q: The following questions deal with auditing standards. Choose the best response

The following questions deal with auditing standards. Choose the best response. a. Which of the following best describes what is meant by U.S. auditing standards? (1) Acts to be performed by the audit...

Q: The following questions deal with liability under the 1933 and 1934 securities

The following questions deal with liability under the 1933 and 1934 securities acts. Choose the best response. a. Major, Major & Sharpe, CPAs, are the auditors of MacLain Technologies. In connection w...

Q: The following questions deal with deficiencies in internal control. Choose the

The following questions deal with deficiencies in internal control. Choose the best response. a. An internal control deficiency may be defined as a condition in which material misstatements would ordi...

Q: The following questions concern the auditor’s responses to the possibility of fraud

The following questions concern the auditor’s responses to the possibility of fraud. When fraud risk factors are identified during an audit, the auditor’s documenta...

Q: The following questions concern the assessment of the risk of material misstatements

The following questions concern the assessment of the risk of material misstatements. Choose the best response. a. Which of the following circumstances most likely would cause the auditor to suspect t...

Q: The following questions deal with audits by CPA firms. Choose

The following questions deal with audits by CPA firms. Choose the best response. a. Which of the following best describes why an independent auditor is asked to express an opinion on the fair presenta...

Q: Describe management’s responsibility for the financial statements. Do you believe the

Describe management’s responsibility for the financial statements. Do you believe the CEO and CFO of a public company perceive an even greater responsibility as a result of the Sarbanes–Oxley Act requ...

Q: The following questions concern the use of analytical procedures during an audit

The following questions concern the use of analytical procedures during an audit. Select the best response. a. For all audits of financial statements made in accordance with auditing standards, the us...

Q: The following questions deal with materiality. Choose the best response.

The following questions deal with materiality. Choose the best response. a. Which one of the following statements is correct concerning the concept of materiality? (1) Materiality is determined by ref...

Q: The following questions concern unmodified opinion audit reports with an emphasis-

The following questions concern unmodified opinion audit reports with an emphasis-of-matter explanatory paragraph or nonstandard wording in report paragraphs. Choose the best response. a. An entity ch...

Q: The following questions concern possible violations of the AICPA Code of Professional

The following questions concern possible violations of the AICPA Code of Professional Conduct. Choose the best response. a. In which one of the following situations would a CPA be in violation of the...

Q: The following questions concern unmodified opinion audit reports. Choose the best

The following questions concern unmodified opinion audit reports. Choose the best response. a. Which of the following is not a required element of a standard unmodified opinion audit report issued in...

Q: The following questions deal with errors and fraud. Choose the best

The following questions deal with errors and fraud. Choose the best response. a. An independent auditor has the responsibility to design the audit to provide reasonable assurance of detecting errors a...

Q: The following questions address fraud risk factors and the assessment of fraud

The following questions address fraud risk factors and the assessment of fraud risk. a. Which action regarding fraud is an activity related to performance of risk assessment procedures? (1) Document t...

Q: The following questions deal with tests of controls. Choose the best

The following questions deal with tests of controls. Choose the best response. a. To support the auditor’s initial assessment of control risk below maximum, the auditor performs procedures to determin...

Q: Visit the PCAOB’s website (www.pcaobus.org) and

Visit the PCAOB’s website (www.pcaobus.org) and locate the PCAOB’s Settled Disciplinary Order against David M. Burns issued on December 19, 2017, to answer the following questions: a. What position di...

Q: Monterrey Corporation has an existing loan in the amount of $7

Monterrey Corporation has an existing loan in the amount of $7 million with an annual interest rate of 6.5%. The company provides an internal company-prepared financial statement to the bank under the...

Q: The following independent scenarios describe auditor decisions made during an audit engagement

The following independent scenarios describe auditor decisions made during an audit engagement. 1. Chen Li worked on the audit of American Healthcare Associations (AHA), which operates hospitals and o...

Q: Publicly traded companies must electronically file a variety of forms or reports

Publicly traded companies must electronically file a variety of forms or reports with the SEC, including the Form 10-K, which includes the audited annual financial statements. The SEC makes most of th...

Q: In the normal course of performing their responsibilities, auditors often conduct

In the normal course of performing their responsibilities, auditors often conduct audits or reviews of the following: 1. The computer operations of a large corporation to evaluate whether the internal...

Q: A careful reading of an unmodified opinion audit report indicates several important

A careful reading of an unmodified opinion audit report indicates several important phrases. Explain why each of the following phrases or clauses is used rather than the alternative provided: a. “The...

Q: Patel, CPA, has completed the audit of the financial statements

Patel, CPA, has completed the audit of the financial statements of Bellamy Corporation as of and for the year ended December 31, 2019. Patel also audited and reported on the Bellamy financial statemen...

Q: What are the information and established criteria for the audit of Jones

What are the information and established criteria for the audit of Jones Company’s tax return by an internal revenue agent? What are they for the audit of Jones Company’s financial statements by a CPA...

Q: The minutes of the board of directors of the Tetonic Metals Company

The minutes of the board of directors of the Tetonic Metals Company for the year ended December 31, 2019, were provided to you. Meeting of March 5, 2019 The meeting of the board of directors of Tetoni...

Q: Your comparison of the gross margin percent for Jones Drugs for the

Your comparison of the gross margin percent for Jones Drugs for the years 2016 through 2019 indicates a significant decline. This is shown by the following information: A discussion with Tanvi Anand...

Q: Analytical procedures are an important part of the audit process and consist

Analytical procedures are an important part of the audit process and consist of the evaluation of financial information by the study of plausible relationships among financial and nonfinancial data. A...

Q: Ling, an audit manager, is planning the audit of Modern

Ling, an audit manager, is planning the audit of Modern Technologies, Inc. (MT, Inc.), a manufacturer of electronic components. This is the first year that Ling’s audit firm has perf...

Q: Following are statements of earnings and financial position for Wexler Industries.

Following are statements of earnings and financial position for Wexler Industries. // Required: a. Use professional judgment in deciding on the preliminary judgment about materiality for earnings...

Q: Gordon & Groton, CPAs, were the auditors of Bank &

Gordon & Groton, CPAs, were the auditors of Bank & Company, a brokerage firm and member of a national stock exchange. Gordon & Groton audited and reported on the financial statements of Bank, which we...

Q: Moranda and Sills, LLP, has served for over 10 years

Moranda and Sills, LLP, has served for over 10 years as the auditor of the financial statements of Highland Bank and Trust. The firm is conducting its audit planning for the current fiscal year and is...

Q: Target and Kohl’s are chains of stores that cater to customers who

Target and Kohl’s are chains of stores that cater to customers who desire name-brand goods at lower prices. The Securities and Exchange Commission (SEC) Form 10-K filing rules require management of U....

Q: Each of the following situations involves a possible violation of the AICPA

Each of the following situations involves a possible violation of the AICPA Code of Professional Conduct. For each situation, state the applicable rule of conduct and whether it is a violation. a. Ste...

Q: Each of the following situations involves possible violations of the AICPA Code

Each of the following situations involves possible violations of the AICPA Code of Professional Conduct. For each situation, state whether it is a violation of the Code. In those cases in which it is...

Q: Public companies are required to file restated financial statements with the SEC

Public companies are required to file restated financial statements with the SEC when they discover after the audited financial statements have been issued that the financial statements are materially...

Q: The following audit procedures are included in the audit program of Holland

The following audit procedures are included in the audit program of Holland Equipment, Inc. 1. Use audit software to examine journal entries in the sales, cash receipts, purchases, cash disbursements,...

Q: The list below indicates various audit, attestation, and other engagements

The list below indicates various audit, attestation, and other engagements involving auditors. 1. A report on the effectiveness of internal control over financial reporting as required by Section 404...

Q: Diane Smith, CPA, performed tests of controls and substantive tests

Diane Smith, CPA, performed tests of controls and substantive tests of transactions for sales for the month of March in an audit of the financial statements for the year ended December 31, 2019. Based...

Q: Assume materiality for the financial statements as a whole is $100

Assume materiality for the financial statements as a whole is $100,000 and performance materiality for accounts receivable is set at $40,000. If the auditor finds one receivable that is overstated by...

Q: Explain the auditor’s responsibility to consider compliance with laws and regulations.

Explain the auditor’s responsibility to consider compliance with laws and regulations. How does this responsibility differ for laws and regulations that have a direct effect on the financial statement...

Q: On February 17, 2019, a CPA completed all the evidence

On February 17, 2019, a CPA completed all the evidence gathering procedures on the audit of the financial statements for the Buckheizer Technology Corporation for the year ended December 31, 2019. The...

Q: Auditing standards require that the engagement team members engage in discussion about

Auditing standards require that the engagement team members engage in discussion about the susceptibility of the financial statements to the risk of fraud. How does this discussion relate to the requi...

Q: The following are independent situations for which you will recommend an appropriate

The following are independent situations for which you will recommend an appropriate audit report on internal control over financial reporting as required by PCAOB auditing standards: 1. During interi...

Q: The SEC issues Accounting and Auditing Enforcement Releases (AAERs) summarizing

The SEC issues Accounting and Auditing Enforcement Releases (AAERs) summarizing SEC actions concerning civil lawsuits brought by the SEC in federal court and related settlements from administrative pr...

Q: The Maguire Pharmaceutical Company, a drug manufacturer, has the following

The Maguire Pharmaceutical Company, a drug manufacturer, has the following internal controls for billing and recording accounts receivable: 1. An incoming customer’s purchase order is received in the...

Q: McClain Plastics has been an audit client of Belcor, Rich,

McClain Plastics has been an audit client of Belcor, Rich, Smith & Barnes, CPAs (BRS&B), for several years. McClain Plastics was started by Evers McClain, who owns 51 percent of the company’s stock. T...

Q: The financial statements for Nike, Inc., are provided in Appendix

The financial statements for Nike, Inc., are provided in Appendix B at the end of the text. a. Determine the free cash flow for the most recent fiscal year. Assume that 90% of the additions to propert...

Q: Kroger, a national supermarket chain, reported the following data (

Kroger, a national supermarket chain, reported the following data (in millions) in its financial statements for a recent year: a. Compute the ratio of sales to assets. Round to two decimal places. b...

Q: The following data (in millions) were taken from the financial

The following data (in millions) were taken from the financial statements of Walmart Stores, Inc: Exercise 2-23: The following data (in millions) are taken from the financial statements of Target C...

Q: The following data (in thousands) were taken from recent financial

The following data (in thousands) were taken from recent financial statements of Starbucks Corporation: a. Compute the working capital and the current ratio for Year 2 and Year 1. Round to two decim...

Q: The following data (in millions) are taken from the financial

The following data (in millions) are taken from the financial statements of Target Corporation: a. For Target Corporation, determine the amount of change in millions and the percent of change (round...

Q: Select a public corporation you are familiar with or which interests you

Select a public corporation you are familiar with or which interests you. Using the Internet, develop a short (1 to 2 pages) profile of the corporation. Include in your profile the following informati...

Q: Daryl Kirby opened Squid Realty Co. on January 1, 2015

Daryl Kirby opened Squid Realty Co. on January 1, 2015. At the end of the first year, the business needed additional capital. On behalf of Squid Realty Co., Daryl applied to Ocean National Bank for a...

Q: In groups of three or four, compare the balance sheets of

In groups of three or four, compare the balance sheets of two different companies, and present to the class a summary of the similarities and differences of the two companies. You may obtain the balan...

Q: Assume that you recently accepted a position with Five Star National Bank

Assume that you recently accepted a position with Five Star National Bank & Trust as an assistant loan officer. As one of your first duties, you have been assigned the responsibility of evaluating...

Q: At the end of the current month, Gil Frank prepared a

At the end of the current month, Gil Frank prepared a trial balance for College App Services. The credit side of the trial balance exceeds the debit side by a significant amount. Gil has decided to ad...

Q: Epstein Engineering Inc. began operations on January 5, 2016,

Epstein Engineering Inc. began operations on January 5, 2016, with the issuance of 500,000 shares of $80 par common stock. The sole stockholders of Epstein Engineering Inc. are Barb Abrams and Dr. Amb...

Q: The financial statements at the end of Wolverine Realty’s first month of

The financial statements at the end of Wolverine Realty’s first month of operations are as follows: Instructions: By analyzing the interrelationships among the four financial s...

Q: The following data (in thousands) were taken from recent financial

The following data (in thousands) were taken from recent financial statements of Under Armour, Inc.: a. Compute the working capital and the current ratio as of December 31, Year 2 and Year 1. Round...

Q: Assume that the error in Exercise 3-15 was not corrected

Assume that the error in Exercise 3-15 was not corrected and that the accrued salaries were included in the first salary payment in November. Indicate which items will be erroneously stated, because o...

Q: The financial statements for Nike, Inc., are presented in Appendix

The financial statements for Nike, Inc., are presented in Appendix B at the end of the text. What is the major source of financing for Nike? Appendix B:

Q: In your audit of Aviary Industries for calendar year 2019, you

In your audit of Aviary Industries for calendar year 2019, you found number of matters that you believe represent possible adjustments to the company’s books. These matters are described below. Manage...

Q: The audit firm of Waggoner and Allen, LLP, recently received

The audit firm of Waggoner and Allen, LLP, recently received a request to submit a proposal to audit the financial statements of the Williamson County Public School System. The system is funded mostly...

Q: In an engagement to review the financial statements of a nonpublic company

In an engagement to review the financial statements of a nonpublic company, SSARS require the accountant to obtain review evidence that is primarily based on inquiries and analytical procedures. The n...

Q: Jennifer Nantale is a new staff auditor on the audit engagement of

Jennifer Nantale is a new staff auditor on the audit engagement of Greenville Light & Sound, which is a publicly traded company with a calendar year end. The engagement team has completed its review o...

Q: With the rapid growth of cloud computing, many organizations are contracting

With the rapid growth of cloud computing, many organizations are contracting with third-party service providers to process and store all kinds of data off site. In doing so, entities are now dependent...

Q: The following questions concern engagements other than the audit of financial statements

The following questions concern engagements other than the audit of financial statements performed by accountants. Choose the best response. a. Which of the following is a prospective financial statem...

Q: The following questions concern contingencies, subsequent events, and communications with

The following questions concern contingencies, subsequent events, and communications with those charged with governance. Choose the best response. a. A client acquired 25 percent of its outstanding ca...

Q: Nilsson, CPA, is conducting the audit of Ellison Waste Management

Nilsson, CPA, is conducting the audit of Ellison Waste Management Corporation. In addition, a supplemental negative assurance report is required for a major mortgage holder. The supplemental report co...

Q: The following items were discovered during the December 31, 2019,

The following items were discovered during the December 31, 2019, audit of the financial statements of Westmoreland Corporation: 1. The company’s financial statements did not include...

Q: How does an auditor evaluate the unadjusted misstatement schedule (also called

How does an auditor evaluate the unadjusted misstatement schedule (also called summary of possible misstatements) at the end of the audit engagement to assess whether the financial statements are fair...

Q: The following questions deal with governmental auditing. Choose the best response

The following questions deal with governmental auditing. Choose the best response. a. Although the scope of audits of recipients of federal financial assistance in accordance with federal audit regula...

Q: The following are miscellaneous questions about compilation and review services. Choose

The following are miscellaneous questions about compilation and review services. Choose the best response. a. Which of the following best describes the responsibility of the CPA in performing compilat...

Q: The following questions concern attestation engagements. Choose the best response

The following questions concern attestation engagements. Choose the best response. a. A Type 1 service auditor’s report on internal controls at a service organization (1) includes an opinion about the...

Q: The following questions concern reports issued by auditors, other than those

The following questions concern reports issued by auditors, other than those on historical financial statements. Choose the best response. a. An auditor is reporting on cash basis financial statements...

Q: The following questions concern information accompanying basic financial statements. Choose the

The following questions concern information accompanying basic financial statements. Choose the best response. a. The Form 10-K filed by management of a public company includes a section on management...

Q: The following questions deal with contingent liabilities and the review for subsequent

The following questions deal with contingent liabilities and the review for subsequent events. Choose the best response. a. When a contingency is resolved subsequent to the issuance of audited financi...

Q: The following questions deal with auditing year-end cash and financial

The following questions deal with auditing year-end cash and financial instruments. Choose the best response. a. A CPA obtains a January 10 cutoff bank statement for a client directly from the bank. V...

Q: For the audit of the financial statements of Mercury Fifo Company,

For the audit of the financial statements of Mercury Fifo Company, Stella Mason, CPA, has decided to apply nonstatistical audit sampling in the tests of controls and substantive tests of transactions...

Q: The following audit procedures are included in the audit program for the

The following audit procedures are included in the audit program for the audit of the financial statements of Golden State Overnight Express: 1. Select a sample of acquisitions from the acquisitions j...

Q: The Broughton Cap Company requires that prenumbered receiving reports be completed when

The Broughton Cap Company requires that prenumbered receiving reports be completed when purchased inventory items arrive in the receiving department. At the time of receipt, the receiving clerk writes...

Q: Assume you performed sampling for an accounts receivable population with a recorded

Assume you performed sampling for an accounts receivable population with a recorded population amount of $2,000,000. Tolerable misstatement is set at $100,000 for the test, and there are no individual...

Q: The following audit procedures were planned by Jack Kaguri, CPA,

The following audit procedures were planned by Jack Kaguri, CPA, in the audit of the acquisition and payment cycle for DeWitt Products, Inc.: 1. Review the acquisitions journal for large and unusual t...

Q: Your client, Edgartown Corporation, provided the following schedule of land

Your client, Edgartown Corporation, provided the following schedule of land, buildings, and equipment for the audit of financial statements for the year ended December 31, 2019: Required: a. What ty...

Q: This problem requires you to research the disclosure requirements for fixed assets

This problem requires you to research the disclosure requirements for fixed assets using the FASB Codification at www.fasb.org. Access to the FASB Codification requires that your educational instituti...

Q: You are auditing the financial statements of Austin Software Company, which

You are auditing the financial statements of Austin Software Company, which is a fast-growing software development company. As part of the company’s strategy, management has been aggressively pursuing...

Q: Describe what is meant by the term “non-GAAP measure

Describe what is meant by the term “non-GAAP measure” and summarize requirements regarding the inclusion of non-GAAP measures in financial statements filed with the SEC.

Q: Chen, CPA, is auditing the financial statements of a manufacturing

Chen, CPA, is auditing the financial statements of a manufacturing company with a significant amount of trade accounts receivable. Chen is satisfied that the accounts are correctly summarized and clas...

Q: As a part of the audit of Ren Gold Manufacturing Company,

As a part of the audit of Ren Gold Manufacturing Company, a nonpublic company, management requests basic financial statements and separately, the same basic financial statements accompanied by additio...

Q: In March 2018, Toys R Us confirmed that it would close

In March 2018, Toys R Us confirmed that it would close all of its U.S. stores after its plans to survive Chapter 11 bankruptcy proceedings failed. Visit the SEC’s Edgar database to locate the company’...

Q: Your client, EKB, Inc., prepared the following schedule for

Your client, EKB, Inc., prepared the following schedule for long-term debt for the audit of financial statements for the year ended December 31, 2019: Required: a. What type of evidence would you ex...

Q: The following data were taken from the financial statements of Gates Inc

The following data were taken from the financial statements of Gates Inc. for the current fiscal year. Assuming that long-term investments totaled $3,000,000 throughout the year and that total assets...

Q: Dell Inc. and Hewlett-Packard Company (HP) compete

Dell Inc. and Hewlett-Packard Company (HP) compete with each other in the personal computer market. Dell’s primary strategy is to assemble computers to customer orders, rather than f...

Q: The following selected data were taken from the financial statements of Robinson

The following selected data were taken from the financial statements of Robinson Inc. for December 31, 2016, 2015 and 2014: The 2016 net income was $372,000, and the 2015 net income was $492,000. No...

Q: The following data are taken from the financial statements of Krawcheck Inc

The following data are taken from the financial statements of Krawcheck Inc. Terms of all sales are 2/10, n/55. a. For 2015 and 2016, determine (1) the accounts receivable turnover and (2) the numbe...

Q: The financial statements for Nike, Inc., are presented in Appendix

The financial statements for Nike, Inc., are presented in Appendix B at the end of the text. The following additional information (in thousands) is available: Instructions 1. Determine the followin...

Q: The controllers of Larkspur, Inc. and Blue Corp. both

The controllers of Larkspur, Inc. and Blue Corp. both ask you whether their companies can reclassify short-term obligations as long-term. Here are the facts surrounding both companiesâ€...

Q: he controllers of Kingbird, Inc. and Ayayai Corp. both

he controllers of Kingbird, Inc. and Ayayai Corp. both ask you whether their companies can reclassify short-term obligations as long-term. Here are the facts surrounding both companiesâ€
...

Q: The controllers of Larkspur, Inc. and Blue Corp. both

The controllers of Larkspur, Inc. and Blue Corp. both ask you whether their companies can reclassify short-term obligations as long-term. Here are the facts surrounding both companiesâ€...

Q: The Singleton Metal Stamping Company is planning to buy a new computer

The Singleton Metal Stamping Company is planning to buy a new computer controlled stamping machine for $10 million. The purchase will be financed entirely with borrowed money that will change Singlet...

Q: Contrast planning cash requirements, especially borrowing, using the statement of

Contrast planning cash requirements, especially borrowing, using the statement of cash flows derived from forecast financial statements with a cash budget. Which is likely to be more useful in runnin...

Q: The Seymour Corp attempted to increase sales rapidly in 20X1 by offering

The Seymour Corp attempted to increase sales rapidly in 20X1 by offering a new, low cost product line designed to appeal to credit customers in relatively poor financial condition. The company sold n...

Q: Tribke Enterprises collected the following data from their financial reports for 20X3

Tribke Enterprises collected the following data from their financial reports for 20X3: Complete the following abbreviated financial statements and calculate per share ratios indicated. (Hint: Start...

Q: Milford Inc. has the following summarized financial statements ($000):

Milford Inc. has the following summarized financial statements ($000): Milford’s equity investors have typically demanded an expected return of at least 25% before they will buy t...

Q: A group of investors is considering buying the Wheelwright Corporation, but

A group of investors is considering buying the Wheelwright Corporation, but does not want to contribute to the company’s financial support after the purchase. Wheelwrightâ€...

Q: The Protek Company is a large manufacturer and distributor of electronic components

The Protek Company is a large manufacturer and distributor of electronic components. Because of some successful new products marketed to manufacturers of personal computers, the firm has recently und...

Q: At the close of 20X3, the financial statements of Northern Manufacturing

At the close of 20X3, the financial statements of Northern Manufacturing were as follows. In addition, Northern paid dividends of $1.2M and sold new stock valued at $1.0M during 20X3. Use the CASHF...

Q: Comparative historical financial statements for Northern Manufacturing of the preceding problem are

Comparative historical financial statements for Northern Manufacturing of the preceding problem are as follows. a. Use the ANALYS program to prepare common size statements and a set of financial ra...

Q: Latigoe Inc. has the following financial statements for 20X8. In

Latigoe Inc. has the following financial statements for 20X8. In addition, the company paid stockholders dividends of $2.9 million and received $4.8 from the sale of new stock. No fixed assets were...

Q: Fitch Inc’s financial statements are as follows: /

Fitch Inc’s financial statements are as follows: Fitch also sold stock for $2.5 million and paid dividends of $3.1 million. No fixed assets were retired during the year. (Hint: Th...

Q: The Cambridge Cartage Company has partially completed its forecast of next year's

The Cambridge Cartage Company has partially completed its forecast of next year's financial statements as follows. The firm pays interest at 10% on all borrowings and pays a combined state and feder...

Q: The management of Coker Corp is doing a quick forecast of 20X9

The management of Coker Corp is doing a quick forecast of 20X9 using the modified percentage of sales method in preparation for a more detailed planning exercise later in the month. The estimate is t...

Q: Larime Corp is forecasting 20X2 near the end of 20X1. The

Larime Corp is forecasting 20X2 near the end of 20X1. The estimated year-end financial statements and a worksheet for the forecasts are shown below. Management expects the following next year: &ac...

Q: Brookfield Asset Management Inc. Access the financial statements and accompanying notes

Brookfield Asset Management Inc. Access the financial statements and accompanying notes of Brookfield Asset Management Inc. for the year ended December 31, 2017, through SEDAR (www.sedar.com) or on th...

Q: Renew Energy Ltd. (REL) manufactures and sells directly to

Renew Energy Ltd. (REL) manufactures and sells directly to customers a special long-lasting rechargeable battery for use in digital electronic equipment. Each battery sold comes with a guarantee that...

Q: Access the financial statements for Loblaw Companies Limited for the year ended

Access the financial statements for Loblaw Companies Limited for the year ended December 30, 2017 and Empire Company Limited for the year ended May 6, 2017, through SEDAR (www.sedar.com) and then answ...

Q: Manon Corporation applies ASPE and sponsors a defined benefit pension plan.

Manon Corporation applies ASPE and sponsors a defined benefit pension plan. The following pension plan information is available for 2020 and 2021: The pension fund paid out benefits in each year. The...

Q: Interior Design Inc. (ID) is a privately owned business

Interior Design Inc. (ID) is a privately owned business that provides interior decorating options for consumers. ID follows ASPE. The software that it purchased six years ago to present clients with d...

Q: Lee Industries Inc. and Lor Inc. enter into an agreement

Lee Industries Inc. and Lor Inc. enter into an agreement that requires Lor Inc. to build three dieselelectric engines to Lee’s specifications. Both Lee and Lor follow ASPE and have calendar year ends....

Q: The consolidated financial statements of Deutsche Lufthansa AG for the year ended

The consolidated financial statements of Deutsche Lufthansa AG for the year ended December 31, 2017, are available in the company's 2017 annual report on the www.lufthansagroup.com website. Instruct...

Q: Gaming Inc. issued a debenture bond to Karamoutz Bank to finance

Gaming Inc. issued a debenture bond to Karamoutz Bank to finance new technology it developed. The debenture was for $500,000, issued at face value, with a 10-year term and interest payable at 10%. Gam...

Q: Access the financial statements of Air Canada and WestJet Airlines Ltd.

Access the financial statements of Air Canada and WestJet Airlines Ltd. for their years ended December 31, 2017, through SEDAR (www.sedar.com) or the companies' websites. Review the financial statemen...

Q: It is December 2020 and Wagner Inc. recently hired a new

It is December 2020 and Wagner Inc. recently hired a new accountant, Jodie Larson. Although Wagner is a private company, it follows IFRS. As part of her preparation of the 2020 financial statements fo...

Q: You have been assigned to examine the financial statements of Picard Corporation

You have been assigned to examine the financial statements of Picard Corporation for the year ended December 31, 2020, as prepared following IFRS. Picard uses a periodic inventory system. You discover...

Q: As at December 31, 2020, Kendrick Corporation is having its

As at December 31, 2020, Kendrick Corporation is having its financial statements audited for the first time ever. The auditor has found the following items that might have an effect on previous years....

Q: The founder, president, and major shareholder of Dewitt Corp.

The founder, president, and major shareholder of Dewitt Corp. recently sold his controlling interest in the company to a national distributor in the same line of business. The change in ownership was...

Q: Sharma Corporation has decided that, in preparing its 2020 financial statements

Sharma Corporation has decided that, in preparing its 2020 financial statements under IFRS, two changes should be made from the methods used in prior years: 1. Depreciation. Sharma has used the tax b...

Q: MFI Holdings Inc. follows IFRS and applies the FV-OCI

MFI Holdings Inc. follows IFRS and applies the FV-OCI model with recycling and has adopted the option to show dividends received as operating activities. MFI's SFP contained the following comparative...

Q: Access the annual financial statements of Empire Company Limited for its year

Access the annual financial statements of Empire Company Limited for its year ended May 6, 2017, at www.sedar.com or the company's website. Instructions Review Empire Company Limited's consolidated...

Q: Access the Bombardier Inc. financial statements for the year ended December

Access the Bombardier Inc. financial statements for the year ended December 31, 2017, which can be found on SEDAR (www.sedar.com). Instructions a. The company had many different types of shares aut...

Q: You are a senior auditor auditing the December 31, 2020 financial

You are a senior auditor auditing the December 31, 2020 financial statements of Hoang Inc., a manufacturer of novelties and party favours and a user of ASPE. During your inspection of the company gara...

Q: The Bank of Montreal and Royal Bank of Canada financial statements for

The Bank of Montreal and Royal Bank of Canada financial statements for their years ended October 31, 2017, can be found on SEDAR (www.sedar.com). Instructions a. What is the average carrying amount...

Q: At the end of 2019, Valerie Corporation reported a deferred tax

At the end of 2019, Valerie Corporation reported a deferred tax liability of $41,000. At the end of 2020, the company had $241,000 of temporary differences related to property, plant, and equipment. D...

Q: Refer to the financial statements and accompanying notes of Canadian Tire Corporation

Refer to the financial statements and accompanying notes of Canadian Tire Corporation Limited, for its year ended December 31, 2017. The financial statements are available on SEDAR (www.sedar.com)....

Q: For the past three years, Bonafacio Holdings Ltd. has held

For the past three years, Bonafacio Holdings Ltd. has held bonds as investments, which it accounted for using the amortized cost model. The bonds were purchased at a discount and are currently classif...

Q: A partial trial balance of Lindy Corporation at December 31, 2020

A partial trial balance of Lindy Corporation at December 31, 2020, follows: Additional adjusting data: 1. A physical count of supplies on hand on December 31, 2020, totalled $3,400. Through an overs...

Q: Access the financial statements of Saskatoon-based Potash Corporation of Saskatchewan

Access the financial statements of Saskatoon-based Potash Corporation of Saskatchewan Inc. for its year ended December 31, 2017, from SEDAR (www.sedar.com). PotashCorp was a well-known Canadian global...

Q: Neilson Tool Corporation's December 31 year-end financial statements contained the

Neilson Tool Corporation's December 31 year-end financial statements contained the following errors: An insurance premium of $66,000 covering the years 2019, 2020, and 2021 was prepaid in 2019, with...

Q: Bennett Corp., which began operations in January 2017, follows IFRS

Bennett Corp., which began operations in January 2017, follows IFRS and is subject to a 30% income tax rate. In 2020, the following events took place: 1. The company switched from the zero-profit met...

Q: Access the annual report, including the audited financial statements, of

Access the annual report, including the audited financial statements, of Thomson Reuters Corporation for the year ended December 31, 2017, from SEDAR (www.sedar.com) or from the company's website (www...

Q: Linden Corporation started operations on January 1, 2012, and has

Linden Corporation started operations on January 1, 2012, and has used the FIFO cost formula since its inception. In 2021, it decides to switch to the weighted average cost formula. You are provided w...

Q: Golden Properties Corporation purchased a parcel of land in March 2019 for

Golden Properties Corporation purchased a parcel of land in March 2019 for $1 million with the intent to construct a building on the property in the near future. At the time of purchase, Golden applie...

Q: Access the financial statements of Brookfield Asset Management for the year ended

Access the financial statements of Brookfield Asset Management for the year ended December 31, 2017. The full set of its annual financial statements can be found on SEDAR at www.sedar.com or on the co...

Q: ABC Airlines carried more than 11.9 million passengers to over

ABC Airlines carried more than 11.9 million passengers to over 160 destinations in 17 countries in 2020. ABC is the descendant of several predecessor companies, including AB Air and BC Airlines. The a...

Q: Air Canada is Canada's largest domestic and international airline, providing scheduled

Air Canada is Canada's largest domestic and international airline, providing scheduled and charter air transportation for passengers and cargo. The airline industry has suffered many difficulties and...

Q: Delmar Manufacturing Inc. is a manufacturer of electronics. It has

Delmar Manufacturing Inc. is a manufacturer of electronics. It has been in operation for over 25 years under ownership of the same two private shareholders. It has always offered its employees a very...

Q: Papadopoulos Limited (PL) sells retail merchandise in Canada. The

Papadopoulos Limited (PL) sells retail merchandise in Canada. The company was incorporated last year and is now in its second year of operations. PL is owned and operated by the Papadopoulos family, a...

Q: Locate and review the statement of changes in shareholders' equity for the

Locate and review the statement of changes in shareholders' equity for the Hudson's Bay Company (HBC) in its financial statements for the 53 weeks ended February 3, 2018 (fiscal 2017) and the 52 weeks...

Q: Kamsky Inc., which follows IFRS, had the following balances and

Kamsky Inc., which follows IFRS, had the following balances and amounts on its comparative financial statements at year end: a. Calculate income taxes paid in 2020 and discuss the related disclosure...

Q: Sky plc, formerly British Sky Broadcasting Group plc, is a

Sky plc, formerly British Sky Broadcasting Group plc, is a pan-European pay television giant and multimedia content company whose common shares trade on the London Stock Exchange. The company produces...

Q: At December 31, 2020, Parew Corporation has a long-

At December 31, 2020, Parew Corporation has a long-term debt of $700,000 owing to its bank. The existing debt agreement imposes several covenants related to Parew's liquidity and solvency. At December...

Q: At December 31, 2020, Burr Corporation owes $500,

At December 31, 2020, Burr Corporation owes $500,000 on a note payable due February 15, 2021. Assume that Burr follows IFRS and that the financial statements are completed and released on February 20,...

Q: Lawrence Incorporated owes $100,000 to Ontario Bank Inc.

Lawrence Incorporated owes $100,000 to Ontario Bank Inc. on a two-year, 10% note due on December 31, 2020. The note was issued at par. Because Lawrence is in financial trouble, Ontario Bank agrees to...

Q: During 2020, Genoa Limited issued retractable preferred shares. The shares

During 2020, Genoa Limited issued retractable preferred shares. The shares may be presented to the company by the holder for redemption after 2023. Explain how these should be presented in the financi...

Q: Sawgrass Corporation, a public company, reported the following balances at

Sawgrass Corporation, a public company, reported the following balances at January 1, 2020: During the year ended December 31, 2020, the following summary transactions occurred: a. Prepare a stateme...

Q: On February 1, 2020, Daily Produce Ltd. entered into

On February 1, 2020, Daily Produce Ltd. entered into a purchase commitment contract to buy apples from Farmers Corporation. According to the contract, Daily Produce could settle the contact on a net b...

Q: Maple Leaf Foods Inc. is a Canadian company that produces food

Maple Leaf Foods Inc. is a Canadian company that produces food products such as prepared meats, ready-to cook and ready-to-serve meals, and fresh pork and poultry. While most of Maple Leaf Foods' busi...

Q: On January 1, 2020, Wolfgang Ltd. paid $1

On January 1, 2020, Wolfgang Ltd. paid $1,000 for the option to buy 5,000 of its common shares for $25 each. The contract stipulates that it may be settled only by exercising the option and buying the...

Q: Higgins Inc. has 52,000 common shares outstanding. The

Higgins Inc. has 52,000 common shares outstanding. The shares have an average cost of $21 per share. On July 1, 2020, Higgins reacquired 800 shares at $56 per share and retired them. Assume no contrib...

Q: Spencer Limited has 50,000 common shares outstanding, with an

Spencer Limited has 50,000 common shares outstanding, with an average issue price per share of $8. On August 1, 2020, the company reacquired and cancelled 600 shares at $40 per share. There was contri...

Q: Ethan Corporation had 100,000 common shares outstanding on December 31

Ethan Corporation had 100,000 common shares outstanding on December 31, 2019. During 2020, the company issued 12,000 shares on March 1, retired 5,000 shares on July 1, issued a 20% stock dividend on O...

Q: Access IAS 34 (Interim Financial Reporting), and the interim financial

Access IAS 34 (Interim Financial Reporting), and the interim financial report for the six-month period ended June 30, 2018, for Nestlé SA from the company's website (www.nestle.com). Instructions a...

Q: BCE Inc.'s accounting policy note and its note disclosures relating

BCE Inc.'s accounting policy note and its note disclosures relating to the company's pension and other postemployment benefits for the year ended December 31, 2017 are set out in the chapter. Instru...

Q: Potash Corporation of Saskatchewan Inc., Loblaw Companies Limited, and Air

Potash Corporation of Saskatchewan Inc., Loblaw Companies Limited, and Air Canada are all Canadian companies with defined benefit plans as at December 31, 2017. Visit www.sedar.com to access financial...

Q: Alimentation Couche-Tard Inc., Loblaw Companies Limited, and Empire

Alimentation Couche-Tard Inc., Loblaw Companies Limited, and Empire Company Limited are three companies in the same industry. Because of this, the expectation is that their operations and financial po...

Q: Petra Ltd. is preparing its financial statements for its year ended

Petra Ltd. is preparing its financial statements for its year ended December 31, 2020, and has just obtained an actuarial pension valuation as at its year-end date. Prior to the actuarial valuation, P...

Q: The accounting for operating leases has been a controversial issue. Many

The accounting for operating leases has been a controversial issue. Many observers argue that firms that use operating leases are using significantly more assets and are more highly leveraged than the...

Q: Refer to the financial statements of Hudson's Bay Company for its fiscal

Refer to the financial statements of Hudson's Bay Company for its fiscal year ended February 3, 2018 (53 weeks), which are reproduced at the end of Volume 2 of this text, and for its fiscal year ended...

Q: Wong Limited is a start-up company and has suffered a

Wong Limited is a start-up company and has suffered a loss in the current year. Although it is confident that its expansion investment will pay off in the future, it decided to not claim any capital c...

Q: Refer to the specimen financial statements at the end of the book

Refer to the specimen financial statements at the end of the book, which show excerpts from the 2017 year-end financial statements, including the accompanying notes, of Hudson's Bay Company. The full...

Q: Talbert Inc., which uses a periodic system, changed from the

Talbert Inc., which uses a periodic system, changed from the weighted average cost formula to the FIFO cost formula in 2020. The increase in the prior year's income before tax as a result of this chan...

Q: Access the financial statements of Thomson Reuters Corporation for its year ended

Access the financial statements of Thomson Reuters Corporation for its year ended December 31, 2017 from the company's website at www.thomsonreuters.ca. The company's annual report states, in its busi...

Q: Chorus Aviation Inc. is a Canadian aviation holding company that provides

Chorus Aviation Inc. is a Canadian aviation holding company that provides, through Jazz Aviation LP, a “significant part of Air Canada’s domestic and transborder network.” Chorus indicates in Note 1 t...

Q: The following selected account balances were taken from the financial statements of

The following selected account balances were taken from the financial statements of Blumberg Inc. concerning its long-term investment in shares of Black Inc. over which it has had significant influenc...

Q: Maffin Corp. owns 75% of Grey Inc. Both companies

Maffin Corp. owns 75% of Grey Inc. Both companies are in the mining industry. During 2020, Maffin Corp. purchased a building from Grey Inc. for $1,000. The building's original cost is $25,000 and its...

Q: Cauchy Inc. (CI) has just had a planning meeting

Cauchy Inc. (CI) has just had a planning meeting with its auditors. There were several concerns raised during the meeting regarding the draft financial statements for the December 31, 2020 year end. C...

Q: Access the financial statements of WestJet Airlines Limited for its year ended

Access the financial statements of WestJet Airlines Limited for its year ended December 31, 2017, from SEDAR (www.sedar.com) or the company's website. Instructions Review the financial statements and...

Q: Big Bath Emporium (BBE), a private company based in Toronto

Big Bath Emporium (BBE), a private company based in Toronto, is the city's largest manufacturer and vendor of bathtubs, showers, and sinks. The company sells products direct to consumers, and also sel...

Q: Jason Corporation completed, its board of directors authorized, and it

Jason Corporation completed, its board of directors authorized, and it issued its financial statements following IFRS for the year ended December 31, 2020, on March 10, 2021. The following events took...

Q: The following selected account balances are taken from the financial statements of

The following selected account balances are taken from the financial statements of Mandrich Inc. at its calendar year end prepared using IFRS: At December 31, 2020, the following information is avail...

Q: Hudson's Bay Company's financial statements for its year ended February 3,

Hudson's Bay Company's financial statements for its year ended February 3, 2018 (fiscal 2017) can be found at the end of this volume or on the company website. HBC is a global retailer with investment...

Q: Tarzwell Limited is preparing some analysis of past financial performance and positions

Tarzwell Limited is preparing some analysis of past financial performance and positions to include in the management discussion and analysis (MD&A) portion of the annual report to shareholders. Yo...

Q: The following information (in $000) has been obtained from

The following information (in $000) has been obtained from Patinka Limited's financial statements for the fiscal years ended December 31. There were no preferred shares issued by Patinka nor were the...

Q: Access the financial statements of Bombardier Inc. for the years ended

Access the financial statements of Bombardier Inc. for the years ended December 31, 2017 and 2016, from the company's website or SEDAR (www.sedar.com). Instructions Changes in non-cash working capi...

Q: AltaGas Ltd. capitalizes on the supply and demand dynamic for natural

AltaGas Ltd. capitalizes on the supply and demand dynamic for natural gas and power by owning and operating assets in gas, power, and utilities in places that provide a strategic competitive advantage...

Q: On January 1, 2020, Offshore Corporation erected a drilling platform

On January 1, 2020, Offshore Corporation erected a drilling platform at a cost of $5,460,000. Offshore is legally required to dismantle and remove the platform at the end of its six-year useful life,...

Q: Crude Oil Limited purchased an oil tanker depot on July 2,

Crude Oil Limited purchased an oil tanker depot on July 2, 2020 at a cost of $600,000 and expects to operate the depot for 10 years. After the 10 years, Crude Oil is legally required to dismantle the...

Q: Corby Spirit and Wine Limited is a leading Canadian marketer and distributor

Corby Spirit and Wine Limited is a leading Canadian marketer and distributor of premium spirits and wine brands. Obtain a copy of the company's comparative financial statements for the year ended June...

Q: Novack Machinery Co. manufactures equipment to a very high standard of

Novack Machinery Co. manufactures equipment to a very high standard of quality; however, it must still provide a warranty for each unit sold, and there are instances where the machines do require repa...

Q: Moleski Limited, a private company following ASPE, includes one coupon

Moleski Limited, a private company following ASPE, includes one coupon in each box of soap powder that it produces, and 10 coupons are redeemable for a premium (a kitchen utensil). In 2020, Moleski pu...

Q: St. Thomas Auto Repairs is preparing the financial statements for the

St. Thomas Auto Repairs is preparing the financial statements for the year ended November 30, 2020. As the accountant, you are looking over the information regarding short-term liabilities, and determ...

Q: Four independent situations follow. Situation 1: During 2020,

Four independent situations follow. Situation 1: During 2020, Sugarpost Inc. became involved in a tax dispute with the Canada Revenue Agency. Sugarpost's tax lawyers have told management that Sugarpo...

Q: Harold Limited's condensed financial statements provide the following information: /

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Your firm has been engaged to examine the financial statements of Samson Corporation for the year 2020. The bookkeeper who maintains the financial records has prepared all the unaudited financial stat...

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In preparing Sahoto Corporation's December 31, 2020 financial statements under ASPE, the vicepresident, finance, is trying to determine the proper accounting treatment for each of the following situat...

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Chen Corporation reported income before income tax for the year ended December 31, 2020, of $1,645,000. In preparing the 2020 financial statements, the accountant discovered an error that was made in...

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Andrew Weiman and Mei Lee are discussing accounting for income taxes. They are currently studying a schedule of taxable and deductible amounts that will arise in the future as a result of existing tem...

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Mazza Corp. owes Tsang Corp. a $110,000, 10-year, 10% note issued at par plus $11,000 of accrued interest. The note is due today, December 31, 2020. Because Mazza Corp. is in financial trouble, Tsang...

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Seek Ltd discloses areas involving critical accounting estimates and assumptions in the relevant notes to its financial statements. Locate the most recent annual report for Seek Ltd and identify the a...

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Q: Let’s resume our examination of Dick’s Sporting Goods (Dick’s). Return

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Q: Let’s examine Dick’s Sporting Goods (Dick’s) again. Think about

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Q: Let’s think about Dick’s Sporting Goods (Dick’s) again. Think

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Q: Let’s think about Dick’s Sporting Goods (Dick’s) again. Think

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Q: Let’s consider Dick’s Sporting Goods (Dick’s) again. Think about

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Q: Let’s look at Dick’s Sporting Goods (Dick’s) some more.

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This case will help you to better understand the effect of adjusting journal entries on financial statements. You know that adjusting journal entries are entered in the journal and then posted to the...

Q: This case continues our examination of the financial statements of Columbia Sportswear

This case continues our examination of the financial statements of Columbia Sportswear. In addition to the income statement (statement of operations) and the balance sheet of Columbia Sportswear in Ap...

Q: This case addresses the long-term assets of Columbia Sportswear.

This case addresses the long-term assets of Columbia Sportswear. The majority of these assets consist of property and equipment and intangible assets. In the text, you learned how most longterm tangib...

Q: This case focuses on the liabilities of Columbia Sportswear Company. Current

This case focuses on the liabilities of Columbia Sportswear Company. Current liabilities are those obligations that will become due and payable within the next year or operating cycle (whichever is lo...

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Although we do not have access to the journals used by Columbia Sportswear, we can still understand various business transactions on the financial statements in Columbia Sportswear’s...

Q: Purpose: To help you understand and compare the performance of two

Purpose: To help you understand and compare the performance of two companies in the same industry. Go to the Columbia Sportswear Company Annual Report located in Appendix A. Now access the 2016 Annual...

Q: Find the Columbia Sportswear Company Annual Report located in Appendix A,

Find the Columbia Sportswear Company Annual Report located in Appendix A, and go to the financial statements starting on page 663. Now access online the 2016 Annual Report for Under Armour, Inc.. For...

Q: Find the Columbia Sportswear Company annual report located in Appendix A,

Find the Columbia Sportswear Company annual report located in Appendix A, and go to the financial statements starting on page 663. Now access the 2016 annual report for Under Armour, Inc., online. For...

Q: Find the Columbia Sportswear Company Annual Report located in Appendix A and

Find the Columbia Sportswear Company Annual Report located in Appendix A and go to the Financial Statements starting on page 663. Now access the 2016 Annual Report for Under Armour, Inc., from the Int...

Q: Find the Columbia Sportswear Company Annual Report located in Appendix A and

Find the Columbia Sportswear Company Annual Report located in Appendix A and go to the Notes to the Consolidated Financial Statements starting on page 668. Now access the 2016 Annual Report for Under...

Q: Find the Columbia Sportswear Company Annual Report located in Appendix A and

Find the Columbia Sportswear Company Annual Report located in Appendix A and go to the Consolidated Financial Statements starting on page 663. Now go online and access the 2016 Annual Report for Under...

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Q: The adjusted trial balance of Valley Realty, Inc., at December

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Q: Titan Truck Parts, Inc., uses the LIFO inventory method and

Titan Truck Parts, Inc., uses the LIFO inventory method and values its inventory using the lower-of-cost-or-market (LCM) rule. Titan Truck Parts, Inc., has the following account balances at December 3...

Q: The comparative financial statements of O’Doherty’s Irish Grille for 2018, 2017

The comparative financial statements of O’Doherty’s Irish Grille for 2018, 2017, and 2016 include the following selected data: Requirements 1. Compute these ratio...

Q: The comparative financial statements of Appleway Flowers, Inc., for 2018

The comparative financial statements of Appleway Flowers, Inc., for 2018, 2017, and 2016 include the following selected data: Requirements 1. Compute these ratios for 2018 and 2017: a. Quick ratio b...

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On January 3, 2018, Grey Enterprises, Inc., paid $280,600 for equipment used in manufacturing automotive supplies. In addition to the basic purchase price, the company paid $500 for transportation cha...

Q: On January 4, 2018, Crux Systems, Inc., paid

On January 4, 2018, Crux Systems, Inc., paid $281,200 for equipment used in manufacturing automotive supplies. In addition to the basic purchase price, the company paid $2,800 for transportation charg...

Q: Resto Motors, Inc., restores antique automobiles. The retained earnings

Resto Motors, Inc., restores antique automobiles. The retained earnings balance of the corporation was $22,400 at December 31, 2017. During 2018, the corporation paid $85,000 in dividends to its stock...

Q: Match the terms with the definitions. ____ 1. A

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Q: Think about operating a business like the Millers did when they created

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Q: Imagine you are Bill Conan, the owner of Conan Consultants.

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Q: The Country Carver had sales totaling $14,800 during the

The Country Carver had sales totaling $14,800 during the month of June. Based on experience, company management expects 7 percent of the sales amount will be refunded to customers in the form of sales...

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Q: Inland Medical Supply, Inc., reported the following financial statements for

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Q: Use the Inland Medical Supply, Inc., data in S11-

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Q: Use the Inland Medical Supply, Inc., data in S11-

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Q: The 2018 financial statements for Inland Supply, Inc., show total

The 2018 financial statements for Inland Supply, Inc., show total assets of $572,000, total liabilities of $322,500, net sales of $1,276,000, net income of $191,400, income from operations of $227,600...

Q: Let’s look at Dick’s Sporting Goods (Dick’s) one last time

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Q: Let’s consider Dick’s Sporting Goods (Dick’s) again. Think about

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Q: Let’s look again at Dick’s Sporting Goods (Dick’s). Think about

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In Chapter 11, we prepared a cash flow statement for Fitness Equipment Doctor, Inc. Now, we will analyze Fitness Equipment Doctor, Inc.’s financial statements using the tools we lear...

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Crane Corporation was in the process of completing the financial statements for the latest fiscal year. Susan Randal, Crane’s CEO, was reviewing the comparative financial statements and expressed some...

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Q: The financial statements of Motion Auto Repair, Inc., include the

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Q: Trudeau’s Marine, Inc., reported the following selected amounts in its

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Q: The financial statements of Hernandez & Son, Inc., include the

The financial statements of Hernandez & Son, Inc., include the following items: Requirements 1. Compute the following ratios for the current year: (a) current ratio, (b) quick ratio, (c) cash co...

Q: The following data are adapted from the financial statements of Intermountain Leasing

The following data are adapted from the financial statements of Intermountain Leasing, Inc.: Total Current Assets …………&...

Q: The following data are adapted from the financial statements of Tycom,

The following data are adapted from the financial statements of Tycom, Inc. Total Current Assets …………â€&brvb...

Q: This case continues our examination of Columbia Sportswear. Here we study

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Q: Find the Columbia Sportswear Company Annual Report located in Appendix A and

Find the Columbia Sportswear Company Annual Report located in Appendix A and go to the Selected Financial Data starting on page 647. Now access the 2016 Annual Report for Under Armour, Inc. from the I...

Q: Find the Columbia Sportswear Company Annual Report located in Appendix A and

Find the Columbia Sportswear Company Annual Report located in Appendix A and go to the Financial Statements starting on page 663. Now go online and access the 2016 Annual Report for Under Armour, Inc....

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Q: Cramer Corporation, a calendar year, accrual basis corporation, reported

Cramer Corporation, a calendar year, accrual basis corporation, reported $1 million of net income after tax on its 2019 financial statements prepared in accordance with GAAP. The corporation’s books a...

Q: Western Corporation, a calendar year, accrual basis corporation, reported

Western Corporation, a calendar year, accrual basis corporation, reported $500,000 of net income after tax on its 2019 financial statements prepared in accordance with GAAP. The corporation’s books an...

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GreenUp, a calendar year, accrual basis taxpayer, provides landscaping installation and maintenance services to its customers. In August 2019, GreenUp contracted with a university to renovate its lawn...

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Univex is a calendar year, accrual basis retail business. Its financial statements provide the following information for the year. Revenues from sales of goods …………………………………………………………. $783,200 Cost o...

Q: Consider the following abbreviated financial statements for Parrothead Enterprises:

Consider the following abbreviated financial statements for Parrothead Enterprises: a. What is owners’ equity for 2020 and 2021? b. What is the change in net working capital for 2...

Q: Graffiti Advertising, Inc., reported the following financial statements for the

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Q: Some recent financial statements for Smolira Golf Corp. follow. Use

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Q: Some recent financial statements for Smolira Golf Corp. follow. Use

Some recent financial statements for Smolira Golf Corp. follow. Use this information to work. Construct the DuPont identity for Smolira Golf Corp.

Q: Some recent financial statements for Smolira Golf Corp. follow. Use

Some recent financial statements for Smolira Golf Corp. follow. Use this information to work. Prepare the 2021 statement of cash flows for Smolira Golf Corp.

Q: Some recent financial statements for Smolira Golf Corp. follow. Use

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Q: Some recent financial statements for Smolira Golf Corp. follow. Use

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In Question 1, assume the company pays out half of net income in the form of a cash dividend. Costs and assets vary with sales, but debt and equity do not. Prepare the pro forma statements and determi...

Q: The most recent financial statements for Crosby, Inc., follow.

The most recent financial statements for Crosby, Inc., follow. Sales for 2021 are projected to grow by 20 percent. Interest expense will remain constant; the tax rate and the dividend payout rate will...

Q: In Problem 24, suppose the firm was operating at only 80

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Q: In Problem 24, suppose the firm wishes to keep its debt

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Q: Redo Problem 26 using sales growth rates of 30 and 35 percent

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Q: The most recent financial statements for Camryn, Inc., are shown

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Q: The most recent financial statements for Mixton, Inc., are shown

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Q: The most recent financial statements for Assouad, Inc., are shown

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Q: The most recent financial statements for Mandy Co. are shown here

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Q: For the company in Problem 6, what is the sustainable growth

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Q: The most recent financial statements for Tran Co. are shown here

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Sigma Corporation applies overhead cost to jobs on the basis of direct labor cost. Job V, which was started and completed during the current period, shows charges of $5,000 for direct materials, $8,00...

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Wollogong Group Ltd. of New South Wales, Australia, acquired its factory building 10 years ago. For several years, the company has rented out a small annex attached to the rear of the building for $30...

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Refer to the information in Exercise 20-34. Required: 1. Calculate free cash flow at Williams Company for each of the two years. 2. Develop a business valuation for Williams Company for 2022 using th...

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United States Motors Inc. (USMI) manufactures automobiles and light trucks and distributes them for sale to consumers through franchised retail outlets. As part of the franchise agreement, dealerships...

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Oakley Company manufactures and sells adjustable canopies that attach to motor homes and trailers. The market covers both new units as well as replacement canopies. Oakley developed its 20x2 business...

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Q: The Kroger Company (KR), a national supermarket chain, reported

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Q: J. C. Penney Company, Inc. (JCP)

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Q: Amazon.com, Inc. (AMZN) is one of

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Q: In teams, select a public company that interests you. Obtain

In teams, select a public company that interests you. Obtain the company’s most recent annual report on Form 10-K. The Form 10-K is a company’s annually required filing with the Securities and Excha...

Q: Obtain Best Buy Co., Inc.’s (BBY) most

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Q: Amazon.com, Inc. (AMZN) is one of

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Q: Obtain eBay’s most recent annual report on Form 10-K.

Obtain eBay’s most recent annual report on Form 10-K. The Form 10-K is a company’s annually required filing with the Securities and Exchange Commission (SEC). It includes the company’s financial state...

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The Boeing Company (BA) is one of the world’s major aerospace firms with operations involving commercial aircraft, military aircraft, missiles, satellite systems, and information and battle management...

Q: Obtain Under Armour, Inc.’s (UAA) most recent

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Q: FedEx Corporation (FDX) and United Parcel Service, Inc.

FedEx Corporation (FDX) and United Parcel Service, Inc. (UPS) compete in the package delivery business. The major fixed assets for each business include aircraft, sorting and handling facilities, deli...

Q: Obtain McDonald’s most recent annual report on Form 10-K.

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Q: Hibbett Sports, Inc. (HIBB) is a sporting goods

Hibbett Sports, Inc. (HIBB) is a sporting goods retailer with locations primarily in the Southeast, Southwest, and Midwest United States. Dick’s Sporting Goods, Inc. (DKS) is a leadi...

Q: Amazon.com, Inc. (AMZN) is one of

Amazon.com, Inc. (AMZN) is one of the largest Internet retailers in the world. Best Buy, Co. Inc. (BBY) is a leading retailer of consumer electronics and media products in the United States. Amazon an...

Q: Obtain Starbucks Corporation’s most recent annual report on Form 10-K

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Q: Amazon.com, Inc. (AMZN) is one of

Amazon.com, Inc. (AMZN) is one of the largest Internet retailers in the world. Walmart Inc. (WMT) is the largest retailer in the United States. Amazon and Walmart compete in similar markets; however,...

Q: The Clorox Company (CLX) and The Procter & Gamble Company

The Clorox Company (CLX) and The Procter & Gamble Company (PG) produce and sell packaged consumer products around the world. Income and interest expense information from financial statements for a...

Q: Obtain Nike, Inc.’s most recent annual report on Form

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Q: Bank of America Corporation (BAC) and Wells Fargo & Company

Bank of America Corporation (BAC) and Wells Fargo & Company (WFC) are two large financial services companies. The following data (in millions) were taken from a recent year’s fin...

Q: Amazon.com, Inc. (AMZN) is one of

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Q: Obtain Alphabet Inc.’s (GOOG) most recent annual report

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Q: Obtain National Beverage Corp.’s most recent annual report on Form

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Q: Obtain The Walt Disney Company’s (DIS) most recent annual report

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Q: In teams, select a public company that interests you. Obtain

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Q: In teams, select a public company that interests you. Obtain

In teams, select a public company that interests you. Obtain the company’s most recent annual report on Form 10-K. The Form 10-K is a company’s annually required filing with the Securities and Exchang...

Q: The following data (in millions) are taken from the financial

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Q: The following data (in millions) are taken from the financial

The following data (in millions) are taken from the financial statements of Walmart Inc. (WMT): a. For Walmart, determine the amount of change in millions and the percent of change rounded to one de...

Q: Accrued salaries owed to employees for August 30 and 31 are not

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Q: When preparing the financial statements for the year ended December 31,

When preparing the financial statements for the year ended December 31, 20Y5, accrued salaries owed to employees for December 30 and 31 were overlooked. The accrued salaries were included in the first...

Q: In teams, select a public company that interests you. Obtain

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Q: Data (in millions) from recent financial statements of Zynga Inc

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Q: Jeffrey Boyd, the president of Eagle Furniture Company (average annual

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Q: Refer to Google’s financial statements in GOOGLE Appendix A near the end

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Q: Identify the accounting principle or assumption that best explains each situation.

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Q: Refer to Apple’s financial statements in Appendix A for the following questions

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Q: Access EDGAR online (sec.gov/edgar) and locate

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Q: For each of the following separate cases, prepare adjusting entries required

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Q: Use Apple’s financial statements in Appendix A to answer the following.

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Q: On January 20, Tamira Nelson, the accountant for Picton Enterprises

On January 20, Tamira Nelson, the accountant for Picton Enterprises, is feeling pressure to complete the annual December 31 year-end financial statements. The company president has said he needs up-to...

Q: Access EDGAR online (SEC.gov) and locate the 10

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Q: Selected comparative financial statements of Haroun Company follow. /

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Q: Selected comparative financial statements of Korbin Company follow. /

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Q: Selected current year-end financial statements of Cabot Corporation follow.

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Q: Summary information from the financial statements of two companies competing in the

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Q: Selected comparative financial statements of Tripoly Company follow. /

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Q: Selected current year-end financial statements of Overton Corporation follow.

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Q: Summary information from the financial statements of two companies competing in the

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Q: Use Apple’s financial statements in Appendix A to answer the following.

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Q: Refer to Apple’s financial statements in Appendix A. Compute its profit

Refer to Apple’s financial statements in Appendix A. Compute its profit margin for the years ended September 29, 2018, and September 30, 2017.

Q: Refer to Google’s financial statements in Appendix A to compute its equity

Refer to Google’s financial statements in Appendix A to compute its equity ratio as of December 31, 2018, and December 31, 2017.

Q: Refer to Samsung’s financial statements in Appendix A. Compute its debt

Refer to Samsung’s financial statements in Appendix A. Compute its debt ratio as of December 31, 2018, and December 31, 2017.

Q: Use Samsung’s financial statements in Appendix A to compute its return on

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Q: The following financial statements and additional information are reported. (1

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Q: Refer to Forten Company’s financial statements and related information in Problem 12

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Q: Refer to Golden Corporation’s financial statements and related information in Problem 12

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Q: Refer to Gazelle Corporation’s financial statements and related information in Problem 12

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Q: Refer to Satu Company’s financial statements and related information in Problem 12

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Q: Use Apple’s financial statements in Appendix A to answer the following.

Use Apple’s financial statements in Appendix A to answer the following. 1. Is Apple’s statement of cash flows prepared under the direct method or the indirect method? 2. For each fiscal year 2018, 201...

Q: Use Apple’s financial statements in Appendix A to answer the following.

Use Apple’s financial statements in Appendix A to answer the following. 1. How many shares of Apple common stock are issued and outstanding at (a) September 29, 2018, and (b) September 30, 2017? 2. Wh...

Q: Refer to the financial statements for Samsung in Appendix A. How

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Q: Teams are to select an industry, and each team member is

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Q: Use Apple’s financial statements in Appendix A to answer the following.

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Q: Visit your city or county library. Ask the librarian to help

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Q: Prepare adjusting entries at December 31 for Maxum Company’s year-end

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Q: Nishi Corporation prepares financial statements for each month-end. As

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Q: Use the table below and Apple’s financial statements in Appendix A to

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Q: Wayward Company wants to prepare interim financial statements for the first quarter

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Q: Hallam Company’s year-end financial statements show the following. The

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Q: Otingo Equipment Co. wants to prepare interim financial statements for the

Otingo Equipment Co. wants to prepare interim financial statements for the first quarter. The company wishes to avoid making a physical count of inventory. Otingo’s gross profit rate...

Q: Use Apple’s financial statements in Appendix A to answer the following.

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Q: Refer to Apple’s financial statements in Appendix A. On September 29

Refer to Apple’s financial statements in Appendix A. On September 29, 2018, what percent of current assets is represented by inventory?

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Q: Refer to Apple’s financial statements in Appendix A and compute its cost

Refer to Apple’s financial statements in Appendix A and compute its cost of goods available for sale for the year ended September 29, 2018.

Q: Refer to Samsung’s financial statements in Appendix A. Compute its cost

Refer to Samsung’s financial statements in Appendix A. Compute its cost of goods available for sale for the year ended December 31, 2018.

Q: Refer to Samsung’s financial statements in Appendix A. What percent of

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Identify the accounting principle or assumption that best reflects each situation. 1. A company reports details behind financial statements that would impact users’ decisions. 2. Financial statements...

Q: You are the financial officer for Music Plus, a retailer that

You are the financial officer for Music Plus, a retailer that sells goods for home entertainment needs. The business owner, Vic Velakturi, recently reviewed the annual financial statements you prepare...

Q: Use Apple’s financial statements in Appendix A to answer the following.

Use Apple’s financial statements in Appendix A to answer the following. 1. Identify the total amount of cash and cash equivalents for fiscal years ended (a) September 29, 2018, and (b) September 30, 2...

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Q: Refer to Apple’s financial statements in Appendix A to answer the following

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Q: Refer to Google’s financial statements in GOOGLE become especially

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Q: The following transactions are from Ohlm Company. Year 1

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Environmental Inc. operates in Canada and the United States. Its basic business is high-temperature treatment services for contaminated soil. In its 2020 financial statements, the company had a loss o...

Q: Towers Inc. (TI) is a leader in delivering communications

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 s...

Q: Rouge Valley Golf and Health Club (RVGH) is a public

Rouge Valley Golf and Health Club (RVGH) is a public company that operates eight clubs in a large city and offers one-year memberships. Membership gives members access to golf and the fitness centre i...

Q: In the late 1990s, CIBC helped Enron Corporation structure 34 "

In the late 1990s, CIBC helped Enron Corporation structure 34 "loans" that appeared in the financial statements as cash proceeds from sales of assets. Enron subsequently went bankrupt in 2001 and left...

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Q: It is February 2021 and Janix Corporation is preparing to issue financial

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Q: The comparative statement of financial position of Sensify Corporation as at December

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Q: Jiang Company Ltd. buys equipment on January 1, 2020,

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Q: On March 10, 2020, Lucas Limited sold equipment that it

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Q: In 1991, Lincoln Limited completed the construction of a building at

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Q: Perez Corp., a mining company, owns a significant mineral deposit

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Q: Green Thumb Landscaping Limited has determined that its lawn maintenance division is

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Q: Onkar Corporation bought a machine on June 1, 2016, for

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Q: Consider the following independent situations for Kwok Corporation. Kwok applies ASPE

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Q: On April 1, 2020, Lombardi Corp. was awarded $

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Q: On August 1, 2020, Iroko Corporation purchased a new machine

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Q: Jupiter Wells Corp. purchased machinery for $315,000 on

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Q: Global Corporation prepares financial statements in accordance with ASPE. At January

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Q: The following is information for Gottlieb Corp. for the year ended

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Q: The shareholders' equity section of Cadmium Corporation as at December 31,

The shareholders' equity section of Cadmium Corporation as at December 31, 2020, follows: Net income of $24 million for 2020 reflects a total effective tax rate of 25%. Included in the net income figu...

Q: At December 31, 2020, Tres Hombres Corporation had the following

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Q: Pike Corporation, a clothing retailer, had income from operations (

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Q: Assume that Elrond Inc. decided to sell DemandTV Ltd., a

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Q: On October 5, 2020, Diamond in the Rough Recruiting Group

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Q: Chessman Corporation factors $600,000 of accounts receivable with Liquidity

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Q: The Becker Milk Company Limited, a real estate and investment management

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Q: Cyan Corporation is a manufacturer of paints and specialty coatings. In

Cyan Corporation is a manufacturer of paints and specialty coatings. In March 2020, Beck Inc. filed a lawsuit against Cyan Corporation for alleged patent infringement, claiming $1.1 million in damages...

Q: The financial statements of Trifolium Corporation for fiscal 2018 to fiscal 2020

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Q: At December 31, 2020, Igor Ltd. has outstanding non

At December 31, 2020, Igor Ltd. has outstanding non cancellable purchase commitments for 32,500 liters of raw material at $2.00 per liter. The material will be used in Igor's manufacturing process, an...

Q: Iqbal Corporation uses the lower of FIFO cost and net realizable value

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Q: The following three situations involve the capitalization of borrowing costs for public

The following three situations involve the capitalization of borrowing costs for public companies following IFRS. Situation 1 On January 1, 2020, Oksana Inc. signed a fixed-price contract to have Buil...

Q: On March 1 2020, Russell Winery Ltd. purchased a five

On March 1 2020, Russell Winery Ltd. purchased a five-hectare commercial vineyard for $1,050,000. The total purchase price was based on appraised market values of the building, grapevines, and equipme...

Q: Mega Inc.'s manufacturing division lost $100,000 (

Mega Inc.'s manufacturing division lost $100,000 (net of tax) for the year ended December 31, 2020, and Mega estimates that it can sell the division at a loss of $200,000 (net of tax). The division qu...

Q: At the end of 2020, Dayton Corporation owns a licence with

At the end of 2020, 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...

Q: In early January 2020, Chi Inc., a private enterprise that

In early January 2020, Chi Inc., a private enterprise that applies ASPE, purchased 40% of the common shares of Washi Corp. for $410,000. Chi was now able to exercise considerable influence in decision...

Q: Blue and White Town Taxi Incorporated applied for several taxi licences for

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Q: Repeat El2.13, but now assume that Dayton prepares financial

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Q: Repeat El2.13, but now assume that the licence was

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Q: Repeat El2.13, but now assume that the licence was

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Q: In 2020, Inventors Corp. spent $392,000 on

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Q: On January 1, 2020, Mustafa Limited paid $537,

On January 1, 2020, Mustafa Limited paid $537,907.40 for 12% bonds with a maturity value of $500,000. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2020, and mature on...

Q: Snow Spray Corp. (SSC) recently filed for bankruptcy protection

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Q: Grappa Grapes Inc. (GGI) grows grapes and produces sparkling

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Q: Hambrecht Corp. is preparing its financial statements for the fiscal year

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Q: EMI Inc. is a public company that operates numerous movie theatres

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Q: On January 1, 2020, Caroline Lampron and Jenni Meno formed

On January 1, 2020, Caroline Lampron and Jenni Meno formed a computer sales and service enterprise in Montreal by investing $90,000 cash. The new company, Razorback Sales and Service, had the followin...

Q: On November l, 2019, Campbell Corporation management decided to discontinue

On November l, 2019, Campbell Corporation management decided to discontinue operation of its Racketeer Division and approved a formal plan to dispose of the division. Campbell is a successful corporat...

Q: Information for 2020 follows for Rolling Thunder Corp.: /

Information for 2020 follows for Rolling Thunder Corp.: Rolling Thunder decided to discontinue its entire wholesale division (a major line of business) and to keep its manufacturing division. On Septe...

Q: The trial balance follows for Thompson Corporation at December 31, 2020

The trial balance follows for Thompson Corporation at December 31, 2020: A physical count of inventory on December 31 showed that there was $64,000 of inventory on hand. Instructions Prepare a conden...

Q: Lydia Trottier has prepared baked goods for sale since 1998. She

Lydia Trottier has prepared baked goods for sale since 1998. She started a baking business in her home and has been operating in a rented building with a storefront since 2003. Trottier incorporated t...

Q: In an examination of Garganta Limited as at December 31, 2020

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Q: Caley Inc. owns a building with a carrying amount of $

Caley Inc. owns a building with a carrying amount of $1.5 million, as at January 1, 2020. On that date, Caley's management determined that the building's location is no longer suitable for the compan...

Q: Gelato Corporation, a private entity reporting under ASPE, was incorporated

Gelato Corporation, a private entity reporting under ASPE, was incorporated on January 3, 2019. The corporation's financial statements for its first year of operations were not examined by a public ac...

Q: On October 1, 2020, Healy Farm Equipment Corp. sold

On October 1, 2020, Healy Farm Equipment Corp. sold a harvesting machine to Homestead Industries. Instead of a cash payment, Homestead Industries gave Healy Farm Equipment a $150,000, two-year, 10% no...

Q: Sier Specialty Corp., a division of FH Inc., manufactures three

Sier Specialty Corp., a division of FH Inc., manufactures three models of bicycle gearshift components that are sold to bicycle manufacturers, retailers, and catalogue outlets. Since beginning operati...

Q: The summary financial statements of Langford Landscaping Ltd. on December 31

The summary financial statements of Langford Landscaping Ltd. on December 31, 2020, are as follows: The following errors were made by the inexperienced accountant on December 31, 2019, and were not...

Q: Astro Languet established Languet Products Co. as a sole proprietorship on

Astro Languet established Languet Products Co. as a sole proprietorship on January 5, 2020. At the company's year end of December 31, 2020, the accounts had the following balances (in thousands): A...

Q: December 31, 2017 consolidated statement of financial position lists property and

December 31, 2017 consolidated statement of financial position lists property and equipment at $9 billion and total assets of $17.7 billion. Air Canada's Note 4 to the financial statements titled Prop...

Q: Inglewood Landscaping Corp. began constructing a new plant on December l

Inglewood Landscaping Corp. began constructing a new plant on December l , 2020. On this date, the company purchased a parcel of land for $184,000 cash. In addition, it paid $2,000 in surveying costs...

Q: Webb Corporation prepares financial statements in accordance with IFRS. Selected accounts

Webb Corporation prepares financial statements in accordance with IFRS. Selected accounts included in the property, plant, and equipment section of the company's statement of financial position at Dec...

Q: On October 1, 2020, Ocean Airways Ltd. purchased a

On October 1, 2020, 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, a...

Q: Fusters Inc. provides audited financial statements to its creditors and is

Fusters Inc. provides audited financial statements to its creditors and is required to maintain certain covenants based on its debt to equity ratio and return on assets. In addition, management of Fus...

Q: You are hired to review the accounting records of Sheridan Inc.

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Q: Castlegar Ltd. had the following investment portfolio at January l,

Castlegar Ltd. had the following investment portfolio at January l, 2020: During 2020, the following transactions took place: 1. On March 1, Josie Corp. paid a $2 per share dividend. 2. On April 30, C...

Q: On December 31 , 2019, Nodd Corp. acquired an investment

On December 31 , 2019, Nodd Corp. acquired an investment in GT Ltd. bonds with a nominal interest rate of 10% (received each December 31), and the controller produced the following bond amortization s...

Q: Chong Corp. purchased a machine on July 1, 2020,

Chong Corp. purchased a machine on July 1, 2020, 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 deliver...

Q: On July 1, 2020, Menard Concrete Ltd. purchased 5

On July 1, 2020, Menard Concrete Ltd. purchased 5% bonds having a maturity value of $50,000 for $48,645.70. The bonds provide the bondholders with a 6% yield. The bonds mature July l, 2023, with inter...

Q: Octavio Corp. prepares financial statements annually on December 31, its

Octavio Corp. prepares financial statements annually on December 31, its fiscal year end. The company follows IFRS. At December 31, 2020, the company has the account Investments in its general ledger,...

Q: Harper Corporation had the following portfolio of investments at December 31,

Harper Corporation had the following portfolio of investments at December 31, 2020, that qualified and were accounted for using the FV-OCI method: Early in 2021, Harper sold all the Frank Inc. shares...

Q: Minute Corp., a Canadian public corporation that follows IFRS, reported

Minute Corp., a Canadian public corporation that follows IFRS, reported the following on its December 31, 2019 statement of financial position: Additional information: 1. The bond amortization table u...

Q: Gilles Corp. purchased a piece of equipment on February l ,

Gilles Corp. purchased a piece of equipment on February l , 2020, for $100,000. The equipment has an estimated useful life of eight years, with a residual value of $25,000, and an estimatedphysical li...

Q: Conan Logging and Lumber Company, a small private company that follows

Conan Logging and Lumber Company, a small private company that follows ASPE, owns 3,000 hectares of timberland on the north side of Mount Leno, which was purchased in 2008 at a cost of $550per hectar...

Q: Roland Corporation uses special strapping equipment in its packaging business. The

Roland Corporation uses special strapping equipment in its packaging business. The equipment was purchased in January 2019 for $10 million and had an estimated useful life of eight years with no resid...

Q: On April 30, 2020, Oceanarium Corporation ordered a new passenger

On April 30, 2020, Oceanarium Corporation ordered a new passenger ship, which was delivered to the designated cruise port and available for use as of June 30, 2020. Overall, the cost of the ship was...

Q: Guiglano Inc. is a large, publicly held corporation. The

Guiglano Inc. is a large, publicly held corporation. The following are six selected expenditures that were made by the company during the fiscal year ended April 30, 2020. The proper accounting treatm...

Q: In late July 2020, Mona Ltd., a private company,

In late July 2020, Mona Ltd., a private company, paid $2 million to acquire all of the net assets of Lubello Corp., which then became a division of Mona. Lubello reported the following statement of fi...

Q: In 2020, Aquaculture Incorporated applied for several commercial fishing licences for

In 2020, Aquaculture Incorporated applied for several commercial fishing licences for its commercial fishing vessels. The application was successful and on January 2, 2020, Aquaculture was granted 22...

Q: MacAskill Corp. has the following portfolio of securities acquired for trading

MacAskill Corp. has the following portfolio of securities acquired for trading purposes and accounted for using the FV-NI model at September 30, 2020, the end of the company's third quarter: On Octobe...

Q: The following information relates to the 2020 debt and equity investment transactions

The following information relates to the 2020 debt and equity investment transactions of Wildcat Ltd., a publicly accountable Canadian corporation. All of the investments were acquired for trading pur...

Q: In its 2017 financial statements (Note 3), Air Canada has

In its 2017 financial statements (Note 3), Air Canada has disclosed its critical estimates and judgements used in preparing the financial statements. Instructions Access the 2017 audited annual fina...

Q: The financial statements of the Hudson's Bay Company are presented at the

The financial statements of the Hudson's Bay Company are presented at the end of the book. Complete the following instructions by referring to these financial statements and the accompanying notes. I...

Q: Locate the audited consolidated financial statements (including the accompanying notes)

Locate the audited consolidated financial statements (including the accompanying notes) of Kirkland Lake Gold Ltd. for its year ended December 31, 2017 (available at www.sedar.com). Instructions Refe...

Q: Use the annual reports and/or the audited annual financial statements

Use the annual reports and/or the audited annual financial statements of Brookfield Office Properties Inc. for the year ended December 31, 2015, and of Mainstreet Equity Corp. for the year ended Septe...

Q: In financial reporting, the goal is to provide useful information to

In financial reporting, the goal is to provide useful information to users of the financial statements such as investors. Investors often use numbers from the financial statements (and other sources)...

Q: Obtain the 2017 financial statements of Teck Resources Limited from SEDAR (

Obtain the 2017 financial statements of Teck Resources Limited from SEDAR (www.sedar.com). Instructions a. Using the notes to the consolidated financial statements, determine the company's revenue re...

Q: Refer to the 2017 financial statements and accompanying notes of Royal Bank

Refer to the 2017 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 percent...

Q: Gain access to the 2017 financial statements of Potash Corporation of Saskatchewan

Gain access to the 2017 financial statements of Potash Corporation of Saskatchewan from the company's website or www.sedar.com. On January l, 2018, PotashCorp and Agrium completed a merger and formed...

Q: Refer to the annual financial statements of Hudson's Bay Company for its

Refer to the annual financial statements of Hudson's Bay Company for its fiscal year ended February 3, 2018 (fiscal 2017), found at the end of the book. Instructions a. Review Hudson's Bay's balance...

Q: Access the financial statements of both BCE Inc. and TELUS Corporation

Access the financial statements of both BCE Inc. and TELUS Corporation for their years ended December 31, 2017, from either the companies' websites or SEDAR (www.sedar.com). Instructions Using the fi...

Q: Airbus SE, previously known as European Aeronautic Defense and Space Company

Airbus SE, previously known as European Aeronautic Defense and Space Company or EADS NV, is incorporated in the Netherlands and its shares are traded in France, Germany, and Spain. Access the financia...

Q: Access the financial statements of The Procter & Gamble Company (P

Access the financial statements of The Procter & Gamble Company (P&G) for its year ended June 30, 2017, from the company's website (www.pginvestor.com). Instructions Refer to P&G's financial statemen...

Q: Coca-Cola Company and PepsiCo are two of the best-

Coca-Cola Company and PepsiCo are two of the best-known companies worldwide. Their 2017 financial statements can be found in the investor information sections of their company websites: www.coca-colac...

Q: Maple Leaf Foods Inc. Access the annual financial statements for Maple

Maple Leaf Foods Inc. Access the annual financial statements for Maple Leaf Foods Inc. for the year ended December 31, 2017. These statements are available from the company's website or from SEDAR (ww...

Q: Canadian Tire Corporation, Limited is one of Canada's best-known

Canadian Tire Corporation, Limited is one of Canada's best-known retailers. The company operates 501 "hard-goods" retail stores through associate dealers, 386 corporate and franchise stores under its...

Q: From SEDAR (www.sedar.com) or the company

From SEDAR (www.sedar.com) or the company websites, access the financial statements of Loblaw Companies Limited for its year ended December 30, 2017, and of Empire Company Limited for its year ended M...

Q: Hudson's Bay Company (HBC), as described in Note 1 to

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Q: Stora Enso Oyj described itself in its annual report as the "

Stora Enso Oyj described itself in its annual report as the "leading provider of renewable solutions in packaging, biomaterials, wooden constructions, and paper globally." Instructions Access the fin...

Q: Access the annual financial statements of Andrew Peller Limited for the year

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Q: From SEDAR (www.sedar.com) or the company

From SEDAR (www.sedar.com) or the company websites, access the financial statements of Loblaw Companies Limited for its year ended December 30, 2017, and Empire Company Limited for its year ended May...

Q: Access the financial statements of Magna International Inc. for the company's

Access the financial statements of Magna International Inc. for the company's year ended December 31, 2017. These are available at www.sedar.com or the company's website. Review the information that i...

Q: Access the annual financial statements of Stora Enso Oyj for the company's

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Q: Access the financial statements of Brookfield Asset Management Inc. for the

Access the financial statements of Brookfield Asset Management Inc. for the company's year ended December 31, 2017, contained in the company's annual report, available from the company's website (or w...

Q: Access the financial statements of BHP Billiton plc (BHP) for

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Q: The financial statements of Hudson's Bay Company for its year ended February

The financial statements of Hudson's Bay Company for its year ended February 3, 2018 (fiscal 2017) appear at the end of this book. Instructions a. What alternative formats could the company have use...

Q: The financial statements for Bombardier Inc. for the year ended December

The financial statements for Bombardier Inc. for the year ended December 31, 2017, can be found on the company's website or from SEDAR (www.sedar.com). Instructions a. What form of presentation does t...

Q: The audited annual financial statements of Maple Leaf Foods Inc. for

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Q: Obtain the 2001 and 2017 annual reports of Goldcorp Inc. from

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Q: The financial statements of Quebecor Inc. and Thomson Reuters Corporation for

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Q: Hudson's Bay Company's financial statements for its year ended February 3,

Hudson's Bay Company's financial statements for its year ended February 3, 2018 (fiscal 2017) can be found at the end of this book. Instructions Refer to the company's financial statements and accomp...

Q: Air France-KLM Group and Air Canada are both global airline

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Q: Access the annual report for British Airways Plc (BA) for

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Q: From the SEDAR website (www.sedar.com) choose

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Q: Brookfield Asset Management Inc. is a global publicly traded Canadian company

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Q: Canadian Tire Corporation, Limited is one of Canada's best-known

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Q: Canadian National Railway Company and Canadian Pacific Railway Limited Two well-

Canadian National Railway Company and Canadian Pacific Railway Limited Two well-known company names in the transportation industry in Canada are Canadian National Railway Company and Canadian Pacific...

Q: Miller Ltd. engaged in the following cash transactions during 2020:

Miller Ltd. engaged in the following cash transactions during 2020: Miller prepares financial statements in accordance with ASPE. Calculate the net cash provided (used) by investing activities.

Q: Midwest Co. reported the following items in the most recent year

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Q: Included in Cellin Limited's December 31, 2020 trial balance are the

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Q: The financial statements of winery Andrew Peller Limited reported net sales of

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Q: The financial statements of BCE Inc. reported net sales of $

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Q: On 21 December 20X7, your client paid €10,000

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Q: Figure 7.12 presents, in summarized form, the financial

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Q: The stated accounting policy treatment for foreign currency translation for SKF,

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Q: When preparing the financial statements for the year ended October 31,

When preparing the financial statements for the year ended October 31, accrued salaries owed to employees for October 30 and 31 were omitted. The accrued salaries were included in the first salary pay...

Q: The following data (in millions) were taken from the financial

The following data (in millions) were taken from the financial statements of Target Corporation: a. For Target Corporation, determine the amount of change in millions and the percent of change (round...

Q: The following data (in millions) were taken from the financial

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Q: The following data are taken from recent financial statements of Nike,

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Q: The following data (in thousands) were taken from recent financial

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Q: The following data (in thousands) were taken from recent financial

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Q: Kroger Co., a national supermarket chain, reported the following data

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Q: The following accounts appeared in recent financial statements of Delta Air Lines

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Q: The financial statements at the end of Wolverine Realty’s first month of

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Q: The financial statements at the end of Atlas Realty’s first month of

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Q: The draft final financial statements of RST Ltd for the year ended

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Q: Jacobs Ltd has recently completed its draft financial statements for the year

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Q: The draft trial balance of Regent Ltd as at 31 May 20X9

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Q: A year ago, you prepared financial statements for A. Wilson

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Q: T. Murray has prepared the following bank ledger account for the

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Q: Jock is a clothing retailer. At 31 December 20X9 he asks

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Q: On 20 December 20X0 your client paid £10,000 for

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Q: Alpha, Beta and Gamma were in partnership for many years sharing

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Q: a. The following items usually appear in the final financial statements

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Q: Cold Heart plc, which has a turnover of £100 million

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Q: IAS 10 – Events after the Reporting Period defines the treatment to

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Q: Your managing director is having a polite disagreement with the auditors on

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Q: The trial balance of Norr Ltd at 31 December 20X9 is as

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Q: The trial balance of Harmonica Ltd at 31 December 20X9 is given

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Q: Topaz Ltd makes up its financial statements regularly to 31 December each

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Q: The following are the financial statements for A. Tack for the

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Q: The following are the financial statements for S. Low for the

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Q: The following are the summarized financial statements of Alpha and Omega,

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Q: Two companies show the following financial statements for the year to 30

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Q: You are given below, in draft form, the financial statements

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Q: Aragon (a bank) has recently received a request for a

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Q: The following are the summarized financial statements of Ingrid Ltd and Epona

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Q: a. Outline the objective of financial statements as set out in

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Q: Describe the information that should be disclosed in financial statements relating to

Describe the information that should be disclosed in financial statements relating to an entity’s accounting policies and estimation techniques.

Q: In the year to 31 December 20X9, Amy bought a new

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Q: Explain the circumstances in which inventories might be shown in the financial

Explain the circumstances in which inventories might be shown in the financial statements at a value different from their historical cost.

Q: Jack Straw, a director in ABC Ltd, has suggested that

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Q: For many years, company financial statements consisted of a statement of

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Q: The statement of financial position as at 31 December 20X8 of Zoom

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Q: Because of the doubtful nature of some debts, P. Rudent

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Q: The financial statements for the year ended 30 November 20X8 of Springboard

The financial statements for the year ended 30 November 20X8 of Springboard Ltd included an allowance for irrecoverable debts at that date of £900. During the year ended 30 November 20X9,...

Q: Bush, a sole trader, commenced trading on 1 January 20X9

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Q: Why are financial statements prepared by companies?

Why are financial statements prepared by companies?

Q: S. Bullock, a farmer, makes up his financial statements

S. Bullock, a farmer, makes up his financial statements to 31 March each year. The trial balance extracted from his books as at 31 March 20X9 was as follows: Included in the above-mentioned figure...

Q: Emily Jackson (Social Security number 765-12-4326)

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Q: Scott Kelly is reviewing MasterToy’s financial statements in order to estimate its

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Q: Dynamic Communication is a U.S. industrial company with several

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Q: Rio National Corp. is a U.S.-based company

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Q: The information in the following exhibit comes from the notes to the

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Q: In reviewing the financial statements of the Graceland Rock Company, you

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Q: Use the financial statements of Heifer Sports Inc. in Table 19A

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Q: Hatfield Industries is a large manufacturing conglomerate based in the United States

Hatfield Industries is a large manufacturing conglomerate based in the United States with annual sales in excess of $300 million. Hatfield is currently under investigation by the Securities and Exchan...

Q: Hatfield Industries is a large manufacturing conglomerate based in the United States

Hatfield Industries is a large manufacturing conglomerate based in the United States with annual sales in excess of $300 million. Hatfield is currently under investigation by the Securities and Exchan...

Q: Hatfield Industries is a large manufacturing conglomerate based in the United States

Hatfield Industries is a large manufacturing conglomerate based in the United States with annual sales in excess of $300 million. Hatfield is currently under investigation by the Securities and Exchan...

Q: In teams, select a public company that interests you. Obtain

In teams, select a public company that interests you. Obtain the company’s most recent annual report on Form 10-K. The Form 10-K is a company’s annually required filing with the Securities and Exchang...

Q: In teams, select a public company that interests you. Obtain

In teams, select a public company that interests you. Obtain the company’s most recent annual report on Form 10-K. The Form 10-K is a company’s annually required filing with the Securities and Exchang...

Q: In teams, select a public company that interests you. Obtain

In teams, select a public company that interests you. Obtain the company’s most recent annual report on Form 10-K. The Form 10-K is a company’s annually required filing with the Securities and Exchang...

Q: FedEx Corporation and United Parcel Service, Inc. compete in the

FedEx Corporation and United Parcel Service, Inc. compete in the package delivery business. The major fixed assets for each business include aircraft, sorting and handling facilities, delivery vehicle...

Q: The financial statements for Nike, Inc., are presented in Appendix

The financial statements for Nike, Inc., are presented in Appendix C at the end of the text. What is the major source of financing for Nike? Financial Statements of Nike, Inc. in Appendix C:

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Q: The following information was taken from the financial statements of Zeil Inc

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Q: The following data are taken from the financial statements of Basinger Inc

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Q: Boeing is one of the world’s major aerospace firms with operations involving

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Q: Rios Co. is a regional insurance company that began operations on

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Q: Forte Inc. produces and sells theater set designs and costumes.

Forte Inc. produces and sells theater set designs and costumes. The company began operations on January 1, 20Y6. The following transactions relate to securities acquired by Forte Inc., which has a fis...

Q: Zeus Investments Inc. is a regional freight company that began operations

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Q: Glacier Products Inc. is a wholesaler of rock climbing gear.

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Q: The financial statements for Nike, Inc., are presented in Appendix

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Q: The Biometrix Corporation has been in operation for one full year (

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Melissa Corporation is domiciled in Germany and is listed on both the Frankfurt and New York Stock Exchanges. Melissa has chosen to prepare consolidated financial statements inaccordance with U.S. GAA...

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Hentzel Landscaping commenced its business on January 1, 20X1. 1. During its first year of operations, Hentzel purchased supplies in the amount of $12,000 (debited to Supplies inventory), and of this...

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Krafty Kris, Inc., discovered the following errors after the 20X1 financial statements were issued: a. A major supplier shipped inventory valued at $8,550 to Krafty Kris on consignment. This merchandi...

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The preliminary draft of the balance sheet at the end of the current fiscal year for Eagle Industries follows. The statement will be incorporated into the annual report to stockholders and will presen...

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Appearing next is information pertaining to Garrels Company’s Allowance for credit losses. Examine this information and answer the following questions. Required: 1. Solve for the un...

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This exercise is built around Kroger’s financial statements from the chapter. Total shareholders’ equity—The Kroger Co. was $5,384 million at February 1, 2014. Required: 1. Kroger earned an ROA of 6....

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Blue, Inc., sells playground equipment to schools and municipalities. It mails invoices at the end of each month for all goods shipped during that month; credit terms are net 30 days. Sales and accoun...

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Presented below is a combined single-step income and retained earnings statement for Hardrock Mining Co. for 20X1. Additional facts gleaned from notes to Hardrock’s financial stateme...

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Craig Incorporated (a fictional company) manufactures and sells security systems. Selected information from the company’s 20X3 financial statements show: On December 31, 20X1, Craig...

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Seydoux Industries manufactures and sells home sound equipment. A note to the company’s annual report states: While certain of the Company’s loans are outstanding, the Company must meet specific finan...

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Barden, Inc., operates a retail chain that specializes in baby clothes and accessories that are made to its specifications by a number of overseas manufacturers. Barden began operations 20 years ago a...

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In 20X2, ABBA Fabrics, Inc., elected to change its method of valuing inventory to the weighted average cost (“WAC”) method, whereas in all prior years inventory was...

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Griffin and Lasky, Inc. (G&L), supplies industrial automation equipment and machine tools to the automotive industry. G&L recognizes revenue on its long-term contracts over time. Customer orde...

Q: Duke Energy Corporation’s 2018 annual report to shareholders contains the following note

Duke Energy Corporation’s 2018 annual report to shareholders contains the following note disclosure (edited for brevity): Regulated Operations Substantially all of Duke Energy’s regulated operations m...

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The following information is taken from the financial statements of Ramsay Health Care Inc.: Required: 1. Reconstruct all journal entries relating to Gross accounts receivable and Allowance for credi...

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The following is an excerpt from the financial statements of Talbot Industries (a fictional company): During 20X2, Chaney Technologies (a fictional company) changed its inventory cost flow assumption...

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1. Refer to the facts in Problem 10-16. Repeat the requirements assuming that Jake uses the FIFO cost flow assumption. 2. Explain how the financial statements are affected when a company decides that...

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The income statement for the year ended December 31, 20X1, as well as the balance sheets asof December 31, 20X1, and December 31, 20X0, for Lucky Lady Inc. follow. This informationis taken from the fi...

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The disclosure rules for business combinations complicate financial analysis. Trend analysis becomes difficult because comparative financial statements are not retroactively adjusted to include data f...

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Bryan Trucking Corporation began business on January 1, 20X1, and consists of the parententity, domiciled and operating in Country X, and a subsidiary operating in Country Y. Bryanis required, as a li...

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Recall the Rombaurer Metals example in the chapter: On October 1, 20X1, Rombaurer has 10 million pounds of copper inventory on hand at an average cost of $0.65 a pound. The spotprice for copper is $0....

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Amiel Company acquired 90% of the common stock of Talia Corporation on December 31, 20X0. The balance sheets of the two companies immediately after the acquisition was made are shown below: The follow...

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Maples Corporation is a Canadian subsidiary of a U.S. parent company. Shown below is the company’s local currency income statement for 20X1. All transactions the company entered into...

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Nagy Corporation’s International Division consists of two of Nagy’s subsidiaries. One of the subsidiaries operates in the United Kingdom and the other on the European continent. The U.K. subsidiary ha...

Q: Darvish Company is a European subsidiary of Cubbie Corporation, a U

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Q: Refer to Darvish Company in problem P18-5. Use the

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Q: Corrpro Companies, Inc., founded in 1984, provides corrosion control

Corrpro Companies, Inc., founded in 1984, provides corrosion control–related services, systems, equipment, and materials to the infrastructure, environmental, and energy markets. Cor...

Q: Lyft, Inc., is an app-based ridesharing service.

Lyft, Inc., is an app-based ridesharing service. Users request rides via their smart phones and drivers, using their own cars, respond to the requests via the system. Lyft collects the fares from ride...

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United Company has two foreign subsidiaries, Cancorp and Britcorp. Cancorp operates in Canada and Britcorp operates in the United Kingdom. Both companies are 100% owned by United Company and their fin...

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XS Supply Company is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income...

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The financial statements for Royale and Cavalier companies are summarized here: These two companies are in the same business and state but different cities. Each company has been in operation for abou...

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Why are traditional, GAAP-based financial statements not necessarily useful to managers and other internal parties?

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Dunino Limited is a company manufacturing, selling and laying carpet tiles, currently preparing financial statements at 31 December 2020. Under the terms of sale, Dunino gives a warranty, whereby it a...

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The trade payables figure in most companies is normally material in the context of the financial statements taken as a whole. What assertions do you think that management is implicitly making about th...

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This question is based on an ACCA question in their Advanced Audit and Assurance Paper P7, June 2012. Snipe Ltd has in place a defined benefit pension plan for its employees. An actuarial valuation on...

Q: Your audit assistant on the Greenburn Ltd assignment has asked you where

Your audit assistant on the Greenburn Ltd assignment has asked you where the following working schedules should be filed: a. Summary of the details of a construction contract for the supply of goods...

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This question is taken from a past paper of the Final Admitting Examination of CAI. Only the dates have been changed. You are undertaking the fieldwork for the audit of the financial statements of CA...

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Give some examples of qualitative characteristics an auditor might take into account when deciding if a particular item in the financial statements is materially misstated.

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Refer to the data in Exercise 14–2 for Weller Corporation. Required: Compute the following financial data for this year: 1. Accounts receivable turnover. (Assume that all sales are o...

Q: Refer to the data in Exercise 14–2 for Weller Corporation

Refer to the data in Exercise 14–2 for Weller Corporation. Required: Compute the following financial ratios for this year: 1. Times interest earned ratio. 2. Debt-to-equity ratio. 3....

Q: Refer to the data in Exercise 14–2 for Weller Corporation

Refer to the data in Exercise 14–2 for Weller Corporation. Required: Compute the following financial data for this year: 1. Gross margin percentage. 2. Net profit margin percentage....

Q: Refer to the data in Exercise 14–2 for Weller Corporation

Refer to the data in Exercise 14–2 for Weller Corporation. Required: Compute the following financial data for this year: 1. Earnings per share. 2. Price-earnings ratio. 3. Dividend p...

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Refer to the financial statements for Rusco Company in Problem 13–13. Because the Cash account decreased so dramatically during this year, the company’s executive committee is anxious to see how the i...

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Refer to the financial statement data for Weaver Company in Problem 13–7. Required: 1. Using the direct method, adjust the company’s income statement for this year...

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Comparative financial statements for Weaver Company follow. During this year, Weaver sold some equipment for $20 that had cost $40 and on which there was accumulated depreciation of $16. In addition,...

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The weekly time tickets indicate the following distribution of labor hours for three direct labor employees: The direct labor rate earned per hour by the three employees is as follows: Tom Couro &aci...

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The fundamental concept behind strategic performance measurement systems is that an organization’s strategy can be represented by a set of performance measures. This basic concept of representing a co...

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Unlike U.S. GAAP, IFRS requires that an entity disclose (a) management’s judgments with the most significant effect on the financial statements and (b) information about the major sources of estimatio...

Q: Unlike U.S. GAAP, IFRS requires that an entity

Unlike U.S. GAAP, IFRS requires that an entity disclose (a) management’s judgments with the most significant effect on the financial statements and (b) information about the major sources of estimatio...

Q: Complete the following statements by identifying the appropriate term or concept.

Complete the following statements by identifying the appropriate term or concept. a. A                     sets forth theory, concepts, and principles to ensure that accounting standards are coherent...

Q: Review the following accounting practices and indicate whether you believe that the

Review the following accounting practices and indicate whether you believe that the practice is correct or incorrect. Justify your answer with an accounting concept, principle, or assumption. a. Citer...

Q: What is the purpose of generating financial statements and who are the

What is the purpose of generating financial statements and who are the primary users of this information?

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Describe the primary users of the financial statements according to the conceptual framework. List the components of the current conceptual framework.

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Big Dollars Corporation’s comparative financial statements included the following amounts for the current year: On its current-year statement of cash flows, what is Big Dollars&acir...

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Use the Foot Locker, Inc.’s 2015 financial statements found in its 2015 annual report to complete the following financial statement articulation worksheets. You can locate Foot Locke...

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Use the 2015 Annual Report, 10-K, of Foot Locker, Inc., to answer the following questions. You can locate Foot Locker’s financial statements on its website or the Securities and Exchange Commission’s...

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What are comparative financial statements and why are they useful?

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Why are the notes to the financial statements an integral part of the financial statements?

Q: Match each annual report section with its description. Annual report sections

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Moocher Company, a publicly traded company that has a December 31 year-end, manufactures and sells novelty toys. Recently, one of the toys that Moocher produced and sold was found to cause serious dig...

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Use Johnson & Johnson’s 2016 Annual Report, 10-K, to answer the following questions. You can locate Johnson & Johnson’s financial statements on its Web site, the Securities and Exchange Commission’s W...

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The following items are from the financial statements of Tall Oak Company Compute Tall Oak’s debt-to-equity ratio and interest coverage ratio for 2018 and 2019. Comment on Tall Oak&...

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Table 29.18 shows the 2019 financial statements for the Executive Cheese Company. Annual depreciation is 10% of fixed assets at the beginning of the year, plus 10% of new investments. The company plan...

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The December 31, 2021, inventory of Tog Company, based on a physical count, was determined to be $450,000. Included in that count was a shipment of goods received from a supplier at the end of the mon...

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Capwell Corporation uses a periodic inventory system. The company’s ending inventory on December 31, 2021, its fiscal-year end, based on a physical count, was determined to be $326,000. Capwell’s unad...

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Refer to the situation described in BE 11–17. Assume that the present value of the estimated future cash flows generated from the division’s assets is $22 million and that their fair value approximate...

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The fact that generally accepted accounting principles allow companies flexibility in choosing between certain allocation methods can make it difficult for a financial analyst to compare periodic perf...

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Collins Corporation purchased office equipment at the beginning of 2019 and capitalized a cost of $2,000,000. This cost figure included the following expenditures: The company estimated an eight-year...

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Refer to the situation described in BE 11–20. Assume that SCC’s fair value of $40 million approximates fair value less costs to sell and that the present value of SCC’s estimated future cash flows is...

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Transit Airlines provides regional jet service in the Mid-South. The following is information on liabilities of Transit at December 31, 2021. Transit’s fiscal year ends on December 31. Its annual fina...

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The unadjusted trial balance of the Manufacturing Equitable at December 31, 2021, the end of its fiscal year, included the following account balances. Manufacturing’s 2021 financial statements were is...

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Eastern Manufacturing is involved with several situations that possibly involve contingencies. Each is described below. Eastern’s fiscal year ends December 31, and the 2021 financial statements are is...

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Refer to the situation described in P 17–10. Assume Electronic Distribution prepares its financial statements according to International Financial Reporting Standards (IFRS). Also as...

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Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year end...

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Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This mate...

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Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year end...

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Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This mate...

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Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year end...

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Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This mate...

Q: Air France–KLM (AF), a Franco-Dutch company

Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year end...

Q: Target Corporation prepares its financial statements according to U.S.

Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This mate...

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Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year end...

Q: Target Corporation prepares its financial statements according to U.S.

Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This mate...

Q: Air France–KLM (AF), a Franco-Dutch company

Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year end...

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Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This mate...

Q: Air France–KLM (AF), a Franco-Dutch company

Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year end...

Q: Target Corporation prepares its financial statements according to U.S.

Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This mate...

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Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year end...

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Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This mate...

Q: Air France–KLM (AF), a Franco-Dutch company

Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF‘s financial statements and disclosure notes for the year end...

Q: Target Corporation prepares its financial statements according to U.S.

Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This mate...

Q: Air France–KLM (AF), a Franco-Dutch company

Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year end...

Q: Target Corporation prepares its financial statements according to U.S.

Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This mate...

Q: Air France–KLM (AF), a Franco-Dutch company

Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year end...

Q: Target Corporation prepares its financial statements according to U.S.

Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This mate...

Q: Air France–KLM (AF), a Franco-Dutch company

Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year end...

Q: Target Corporation prepares its financial statements according to U.S.

Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This mate...

Q: Air France–KLM (AF), a Franco-Dutch company

Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year end...

Q: Target Corporation prepares its financial statements according to U.S.

Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This mate...

Q: Air France–KLM (AF), a Franco-Dutch company

Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year end...

Q: Target Corporation prepares its financial statements according to U.S.

Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This mate...

Q: Air France–KLM (AF), a Franco-Dutch company

Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year end...

Q: Target Corporation prepares its financial statements according to U.S.

Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This mate...

Q: Air France–KLM (AF), a Franco-Dutch company

Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year end...

Q: Target Corporation prepares its financial statements according to U.S.

Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This mate...

Q: Air France–KLM (AF), a Franco-Dutch company

Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year end...

Q: Target Corporation prepares its financial statements according to U.S.

Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This mate...

Q: Air France–KLM (AF), a Franco-Dutch company

Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year end...

Q: Target Corporation prepares its financial statements according to U.S.

Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This mate...

Q: Air France–KLM (AF), a Franco-Dutch company

Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year end...

Q: Target Corporation prepares its financial statements according to U.S.

Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This mate...

Q: Air France-KLM (AF), a Franco-Dutch company

Air France-KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year end...

Q: Access the financial statements for the year ended January 28, 2017

Access the financial statements for the year ended January 28, 2017, for Gap Inc. by downloading them from www.gapinc.com, and use them to answer the following questions. Required: 1. What amounts did...

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Refer to Case 2–1 above. Mr. Pitt has relented and agrees to provide you with the information necessary to convert his cash basis financial statements to accrual basis statements. He provides you with...

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Ralph Lauren Corporation is a global leader in the design, marketing, and distribution of premium lifestyle products, including men’s, women’s and children’s apparel. Below are selected financial stat...

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GlaxoSmithKline Plc. (GSK) is a global pharmaceutical and consumer health-related products company located in the United Kingdom. The company prepares its financial statements in accordance with Inter...

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Johnson & Johnson is one of the world’s largest manufacturers of health care products. The company’s July 2, 2017, financial statements included the following i...

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Southwest Airlines provides scheduled air transportation services in the United States. Like many airlines, Southwest leases many of its planes from Boeing Company. In its long-term debt disclosure no...

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Horizon Corporation manufactures personal computers. The company began operations in 2016 and reported profits for the years 2016 through 2019. Due primarily to increased competition and price slashin...

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The table below contains selected financial information included in the 2016 financial statements of Tyson Foods Inc. and Pilgrim’s Pride Corp. Required: 1. Calculate the 2016 receiv...

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McLaughlin Corporation uses the allowance method to account for bad debts. At the end of the company’s fiscal year, accounts receivable are analyzed and the allowance for uncollectible accounts is adj...

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The table below contains selected financial information included in the 2017 financial statements of Kohl’s Corporation and Dillards, Inc., two companies in the department store indu...

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EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system, performs automated collection, validation, indexing, and forwarding of submission by companies and others who are required by law...

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Danville Bottlers is a wholesale beverage company. Danville uses the FIFO inventory method to determine the cost of its ending inventory. Ending inventory quantities are determined by a physical count...

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Abercrombie & Fitch Co. (A&F) is a specialty retail company operating over 1,000 stores globally. The following disclosure note was included in recent financial statement: 4. Change in Accounting Prin...

Q: EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system

EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system, performs automated collection, validation, indexing, and forwarding of submissions by companies and others who are required by law...

Q: Amgen, Inc. is an American multinational biopharmaceutical company headquartered in

Amgen, Inc. is an American multinational biopharmaceutical company headquartered in Thousand Oaks, California. Located in the Conejo Valley, Amgen is the world’s largest independent...

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Whaley Distributors is a wholesale distributor of electronic components. Financial statements for the year ended December 31, 2021, reported the following amounts and subtotals ($ in millions): In 202...

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The following are excerpts from the 2016 financial statements of Renault, a large French automobile manufacturer. 14 – INVESTMENT IN NISSAN Renault and the Japanese automaker Nissan have chosen to dev...

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All publicly traded domestic companies use EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system, to make the majority of their filings with the SEC. You can access EDGAR at www.sec.gov...

Q: Late in 2021, you and two other officers of Curbo Fabrications

Late in 2021, you and two other officers of Curbo Fabrications Corporation just returned from a meeting with officials of the City of Jackson. The meeting was unexpectedly favorable even though it cul...

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EDGAR (Electronic Data Gathering, Analysis, and Retrieval system) performs automated collection, validation, indexing, acceptance, and forwarding of submissions by companies and others who are require...

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Kevin Brantly is a new hire in the controller’s office of Fleming Home Products. Two events occurred in late 2021 that the company had not previously encountered. The events appear t...

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Morgan Stanley is a leading investment bank founded in 1935. The company’s fiscal year ends December 31, 2013, and it filed its financial statements with the SEC on February 25, 2014. On February 5, 2...

Q: As a second-year financial analyst for A.J.

As a second-year financial analyst for A.J. Straub Investments, you are performing an initial analysis on Fizer Pharmaceuticals. A difficulty you’ve encountered in making comparisons with its chief ri...

Q: IGF Foods Company is a large, primarily domestic, consumer foods

IGF Foods Company is a large, primarily domestic, consumer foods company involved in the manufacture, distribution and sale of a variety of food products. Industry averages are derived from Troyâ...

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Domestic Transfer and Storage is a large trucking company headquartered in the Midwest. Rapid expansion in recent years has been financed in large part by debt in a variety of forms. In preparing the...

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“I see an all-nighter coming on,” Gayle grumbled. “Why did Mitch just now give us this assignment?” Your client, Western Manufacturing, is involved with several situations that possibly involve contin...

Q: In the March 2022 meeting of Valleck Corporation’s board of directors,

In the March 2022 meeting of Valleck Corporation’s board of directors, a question arose as to the way a possible obligation should be disclosed in the forthcoming financial statements for the year end...

Q: AGF Foods Company is a large, primarily domestic, consumer foods

AGF Foods Company is a large, primarily domestic, consumer foods company involved in the manufacture, distribution, and sale of a variety of food products. Industry averages are derived from Troy&acir...

Q: EDGAR, the Electronic Data Gathering. Analysis, and Retrieval system

EDGAR, the Electronic Data Gathering. Analysis, and Retrieval system, performs automated collection, validation, indexing, acceptance and forwarding of submissions by companies and others who are requ...

Q: Walmart Inc. is the world’s largest retailer. A large portion

Walmart Inc. is the world’s largest retailer. A large portion of the premises that the company occupies are leased. Its financial statements and disclosure notes revealed the followi...

Q: The income tax disclosure note accompanying the January 31, 2017,

The income tax disclosure note accompanying the January 31, 2017, financial statements of Walmart is reproduced below: Required: 1. Focusing on only the first part of Note 9, relating current, deferre...

Q: Access the 2016 financial statements and related disclosure notes of Ford Motor

Access the 2016 financial statements and related disclosure notes of Ford Motor Company from its website at corporate.ford.com. Required: 1. In Note 21, find Ford’s net deferred tax asset or liability...

Q: Macy’s, Inc., operates about 700 Macy’s and Bloomingdale’s department stores

Macy’s, Inc., operates about 700 Macy’s and Bloomingdale’s department stores and furniture galleries in 45 states and U.S. territories as well as Bloomingdale’s Outlet stores, macys.com, and bloomingd...

Q: Refer to the financial statements and related disclosure notes of Microsoft Corporation

Refer to the financial statements and related disclosure notes of Microsoft Corporation (www.microsoft.com). Required: 1. What type of pension plan does Microsoft sponsor for its employees? Explain. 2...

Q: Refer to the 2017 financial statements and related disclosure notes of FedEx

Refer to the 2017 financial statements and related disclosure notes of FedEx Corporation. The financial statements can be found at the company’s website (www.fedex.com). Required: 1. Does FedEx sponso...

Q: Titan Networking became a public company through an IPO (initial public

Titan Networking became a public company through an IPO (initial public offering) two weeks ago. You are looking forward to the challenges of being assistant controller for a publicly owned corporatio...

Q: AGF Foods Company is a large, primarily domestic, consumer foods

AGF Foods Company is a large, primarily domestic, consumer foods company involved in the manufacture, distribution, and sale of a variety of food products. Industry averages are derived from Troy&acir...

Q: IGF Foods Company is a large, primarily domestic, consumer foods

IGF Foods Company is a large, primarily domestic, consumer foods company involved in the manufacture, distribution, and sale of a variety of food products. Industry averages are derived from Troy&acir...

Q: Sometimes a business entity will change its method of accounting for certain

Sometimes a business entity will change its method of accounting for certain items. The change may be classified as a change in accounting principle, a change in accounting estimate, or a change in re...

Q: Danville Bottlers is a wholesale beverage company. Danville uses the FIFO

Danville Bottlers is a wholesale beverage company. Danville uses the FIFO inventory method to determine the cost of its ending inventory. Ending inventory quantities are determined by a physical count...

Q: Late in 2021, you and two other officers of Curbo Fabrications

Late in 2021, you and two other officers of Curbo Fabrications Corporation just returned from a meeting with officials of the City of Jackson. The meeting was unexpectedly favorable even though it cul...

Q: It’s financial statements preparation time at Center Industries, where you have

It’s financial statements preparation time at Center Industries, where you have been assistant controller for two months. Ben Huddler, the controller, seems to be pleasant but unpredictable. Today, al...

Q: DRS Corporation changed the way it depreciates its computers from the sum

DRS Corporation changed the way it depreciates its computers from the sum-of-the-year’s-digits method to the straight-line method beginning January 1, 2021. DRS also changed its estimated residual val...

Q: “Why can’t we pay our shareholders a dividend?” shouted your

“Why can’t we pay our shareholders a dividend?” shouted your new boss. “This income statement you prepared for me says we earned...

Q: Locate the financial statements and related disclosure notes of FedEx Corporation for

Locate the financial statements and related disclosure notes of FedEx Corporation for the fiscal year ended May 31, 2017. You can locate the report online at www.fedex.com. Use the information provide...

Q: After graduating near the top of his class, Ben Naegle was

After graduating near the top of his class, Ben Naegle was hired by the local office of a Big 4 CPA firm in his hometown. Two years later, impressed with his technical skills and experience, Park Elec...

Q: Refer to the financial statements and related disclosure notes of The Kroger

Refer to the financial statements and related disclosure notes of The Kroger Company for the fiscal year ending January 30, 2018. You can locate the report online from “investor relations” at www.krog...

Q: How might your answer differ if we assume Sterling Properties prepares its

How might your answer differ if we assume Sterling Properties prepares its financial statements according to International Financial Reporting Standards (IFRS)? The interest rate on high-grade corpora...

Q: Access the FASB Accounting Standards Codification at the FASB website (www

Access the FASB Accounting Standards Codification at the FASB website (www.fasb.org). Determine the specific eight-digit Codification citation (XXX-XX-XX-X) for accounting for each of the following it...

Q: Information from the financial statements of Ames Fabricators, Inc., included

Information from the financial statements of Ames Fabricators, Inc., included the following: Ames’s net income for the year ended December 31, 2021, is $500,000. The income tax rate...

Q: The Commonwealth of Virginia filed suit in October 2019, against Northern

The Commonwealth of Virginia filed suit in October 2019, against Northern Timber Corporation seeking civil penalties and injunctive relief for violations of environmental laws regulating forest conser...

Q: During 2021, WMC Corporation discovered that its ending inventories reported on

During 2021, WMC Corporation discovered that its ending inventories reported on its financial statements were misstated by the following amounts: 2019 understated by $120,000 2020 overstated by 150,00...

Q: Portions of the financial statements for Myriad Products are provided below.

Portions of the financial statements for Myriad Products are provided below. Required: Prepare the cash flows from operating activities section of the statement of cash flows for Myriad Products Compa...

Q: Refer to the data provided in E 21–23 for Myriad

Refer to the data provided in E 21–23 for Myriad Products Company. Required: Prepare the cash flows from the operating activities section of the statement of cash flows for Myriad Pr...

Q: Portions of the financial statements for Clear Transmissions Company are provided on

Portions of the financial statements for Clear Transmissions Company are provided on the next page. Required: Prepare the cash flows from operating activities section of the statement of cash flows fo...

Q: Refer to the data provided in E 21–25 for Clear

Refer to the data provided in E 21–25 for Clear Transmissions Company. Required: Prepare the cash flows from operating activities section of the statement of cash flows for Clear Tra...

Q: The Mazzanti Wholesale Food Company’s fiscal year-end is June 30

The Mazzanti Wholesale Food Company’s fiscal year-end is June 30. The company issues quarterly financial statements requiring the company to prepare adjusting entries at the end of each quarter. Assum...

Q: Determine the response that best completes the following statements or questions.

Determine the response that best completes the following statements or questions. 1. The primary objective of financial reporting is to provide information a. About a firm’s management team. b. Useful...

Q: During the course of your examination of the financial statements of the

During the course of your examination of the financial statements of the Hales Corporation for the year ended December 31, 2021, you discover the following: a. An insurance policy covering three years...

Q: Stanley and Jones Lawn Service Company (S&J) maintains

Stanley and Jones Lawn Service Company (S&J) maintains its books on a cash basis. However, the company recently borrowed $100,000 from a local bank, and the bank requires S&J to provide annual...

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Q: Prepare the necessary adjusting entries at December 31, 2021, for

Prepare the necessary adjusting entries at December 31, 2021, for the Falwell Company for each of the following situations. Assume that no financial statements were prepared during the year and no adj...

Q: Prepare the necessary adjusting entries at December 31, 2021, for

Prepare the necessary adjusting entries at December 31, 2021, for the Microchip Company for each of the following situations. Assume that no financial statements were prepared during the year and no a...

Q: Hallergan Company produces car and truck batteries that it sells primarily to

Hallergan Company produces car and truck batteries that it sells primarily to auto manufacturers. Dorothy Hawkins, the company’s controller, is preparing the financial statements for the year ended De...

Q: Refer to the situation described in E 4–13.

Refer to the situation described in E 4–13. Required: Prepare the statement of cash flows assuming that Bluebonnet prepares its financial statements according to International Financ...

Q: The statement of cash flows for the year ended December 31,

The statement of cash flows for the year ended December 31, 2021, for Bronco Metals is presented below. Required: Prepare the statement of cash flows assuming that Bronco prepares its financial statem...

Q: General Mills reported the following information in its 2017 financial statements ($

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Q: Microsoft Corporation reported the following information in its financial statements for three

Microsoft Corporation reported the following information in its financial statements for three successive quarters ($ in millions): Required: Compute the receivables turnover ratio and the average col...

Q: The table below contains selected information from recent financial statements of The

The table below contains selected information from recent financial statements of The Home Depot, Inc., and Lowe’s Companies, Inc., two companies in the home improvement retail indus...

Q: National Distributing Company uses a periodic inventory system to track its merchandise

National Distributing Company uses a periodic inventory system to track its merchandise inventory and the gross profit method to estimate ending inventory and cost of goods sold for interim periods. N...

Q: During 2021, WMC Corporation discovered that its ending inventories reported in

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Q: On February 1, 2021, the Xilon Corporation issued 50,

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Q: Cranston LTD. prepares its financial statements according to International Financial Reporting

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Q: Nvidia Corporation, a global technology company located in Santa Clara,

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Q: Access the FASB Accounting Standards Codification at the FASB website (www

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Q: NXS Semiconductor prepares its financial statements according to International Financial Reporting Standards

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Q: Saint John Corporation prepares its financial statements according to IFRS. On

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Q: Refer to the situation described in Exercise 11–27.

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Q: Collinsworth LTD., a U.K. company, prepares its

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Q: Refer to the situation described in E 11–31, requirement

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Q: Dower Corporation prepares its financial statements according to IFRS. On March

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Q: At April 1, 2022, the Food and Drug Administration is

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The following selected circumstances relate to pending lawsuits for Erismus, Inc. Erismus’s fiscal year ends on December 31. Financial statements are issued in March 2022. Erismus prepares its financi...

Q: Refer to the circumstances listed in E13–21, but assume

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Q: The Commonwealth of Virginia filed suit in October 2019 against Northern Timber

The Commonwealth of Virginia filed suit in October 2019 against Northern Timber Corporation, seeking civil penalties and injunctive relief for violations of environmental laws regulating forest conser...

Q: Refer to the situation described in E 14–24.

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Q: How might your solution for the issuer of the bonds differ if

How might your solution for the issuer of the bonds differ if Madison Products prepares its financial statements according to International Financial Reporting Standards? Include any appropriate journ...

Q: Access the FASB Accounting Standards Codification at the FASB website (www

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Q: How might your solution differ if Lacy Construction prepares its financial statements

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Q: Nike, Inc., is a leading manufacturer of sports apparel,

Nike, Inc., is a leading manufacturer of sports apparel, shoes, and equipment. The company’s 2017 financial statements contain the following information ($ in millions): A note discl...

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Avon Products, Inc., located in New York City, is one of the world’s largest producers of beauty and related products. The company’s consolidated balance sheets for...

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Q: Tarheel Farm, Inc. (TFI) is a North Carolina

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On September 1, 2019, Conboy Construction signed a contract with Venuti Enterprises to construct a new corporate headquarters and parking garage on land that Venuti owns. Conboy determines that contro...

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Q: Welk Associates sold a piece of equipment to Convey Company on June

Welk Associates sold a piece of equipment to Convey Company on June 1, 2016, for $800,000. Welk agreed to accept a 7-month, 7% note with interest due on its maturity date, December 31, 2016. Welk prep...

Q: Using the information provided in BE9-19, prepare the journal

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Q: Foster Technologies, Inc., provides specialized network solutions for companies in

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Q: Best Stores is considering a change in its inventory valuation method.

Best Stores is considering a change in its inventory valuation method. The company currently uses the FIFO method and may want to change to the LIFO method. Inventory information for the current year...

Q: Your boss was impressed with your presentation regarding the irrelevance of capital

Your boss was impressed with your presentation regarding the irrelevance of capital structure but, as expected, has realized that market imperfections like taxes must be accounted for. You have now be...

Q: As a new analyst for a large brokerage firm, you are

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Q: At the beginning of Year 1, Copeland Drugstore purchased a new

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Q: The Ramires, Incorporated experienced the following events during its first year

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Q: Dan Watson started a small merchandising business in Year 1. The

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Q: The following horizontal financial statements model shows the transactions experienced by The

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Q: Holloway Company started operations on January 1, Year 1. During

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Q: On March 1, Year 1, Windy Mill Co. paid

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Kendall Company earned $20,000 of cash revenue. Kendall Co. incurred $10,000 of utility expense on account during Year 1. The company made cash payments of $5,000 to reduce its accounts payable during...

Q: The Woodstock Shop experienced the following events during its first year of

The Woodstock Shop experienced the following events during its first year of operations, Year 1: 1. Acquired $38,000 cash by issuing common stock. 2. Earned $30,000 revenue on account. 3. Paid $25,000...

Q: Sara Bayer started a small merchandising business in Year 1. The

Sara Bayer started a small merchandising business in Year 1. The business experienced the following events during its first year of operation. Assume that Bayer uses the perpetual inventory system. 1....

Q: Match the financial statements with the appropriate statement to describe them.

Match the financial statements with the appropriate statement to describe them.

Q: The following is a partial list of transactions FRC Company experienced during

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Q: McDowell Company began the Year 3 accounting period with $50,

McDowell Company began the Year 3 accounting period with $50,000 cash, $72,000 inventory, $55,000 common stock, and $67,000 retained earnings. During Year 3, McDowell experienced the following events:...

Q: Farm Tractor Supply experienced the following events during Year 1, its

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Q: Frey Company issued bonds of $300,000 face value on

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Q: Dixon Construction, Inc. issued $300,000 of 10

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Q: The Bruce Spruce Co. experienced the following events during its first

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Q: The following horizontal financial statements model shows the transactions experienced by Surf’s

The following horizontal financial statements model shows the transactions experienced by Surf’s Up Industries during Year 1. The table contains missing data that are labeled with al...

Q: Waddell Company had the following balances in its accounting records as of

Waddell Company had the following balances in its accounting records as of December 31, Year 1: The following accounting events apply to Waddell Company’s Year 2 fiscal year: Jan. 1...

Q: At the beginning of Year 2, the Redd Company had the

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Q: Identify the financial statements on which each of the following items (

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Q: Arnold Corp. issued $600,000 of 20-year

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Q: The Corners Corporation experienced three events that affected its financial statements as

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Q: The following financial statements apply to Karl Company: /

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Q: The following data were extracted from the 2017 financial statements of Penske

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Q: Electronic Enterprises (EE) experienced eight accounting events during Year 6

Electronic Enterprises (EE) experienced eight accounting events during Year 6. These events affected EE’s financial statements, as shown in the following horizontal financial stateme...

Q: Electronic Enterprises (EE) experienced eight accounting events during Year 6

Electronic Enterprises (EE) experienced eight accounting events during Year 6. These events affected EE’s financial statements as shown in the following horizontal financial statemen...

Q: Waddell Company had the following balances in its accounting records as of

Waddell Company had the following balances in its accounting records as of December 31, Year 1: The following accounting events apply to Waddell Company’s Year 2 fiscal year: Jan. 1...

Q: The following account balances pertain to Frank’s Hardware as of January 1

The following account balances pertain to Frank’s Hardware as of January 1, Year 2: The following events occurred in Year 2. Assume that Frank’s uses the periodic i...

Q: Identify the financial statements on which each of the following items (

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Q: At the beginning of Year 2, the Dotson Company had the

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Q: Required Obtain Target Corporation’s annual report for its 2018 fiscal year

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Q: Dame Co. issued $250,000 of 10-year

Dame Co. issued $250,000 of 10-year, 6 percent, callable bonds on January 1, Year 1, with interest payable annually on December 31. The bonds were issued at their face amount. The bonds are callable a...

Q: Show the effect of each of the following independent accounting events on

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Q: Use the financial statements for Bluffton Company from Problem 14-17B

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Q: Use the financial statements for Bluffton Company from Problem 14-17B

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Q: The following financial statements and information are available for Blythe Industries Inc

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Q: The Containers Inc. experienced the following events during its first year

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Q: Troy Company earned $15,000 of cash revenue. Troy

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Q: On June 1, Year 1, Hamlin, Inc. paid

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Q: Match the financial statements with the appropriate statement to describe them.

Match the financial statements with the appropriate statement to describe them.

Q: Composite Fabricators, Inc. is a U.S.-based

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Q: The following is a partial list of transactions Bok Company experienced during

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Powell Company began the Year 3 accounting period with $40,000 cash, $86,000 inventory, $60,000 common stock, and $66,000 retained earnings. During Year 3, Powell experienced the following events: 1....

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On June 1, Parker-Mae Corporation (a U.S.-based company) received an order to sell goods to a foreign customer at a price of 100,000 francs. Parker-Mae will ship the goods and receive payment in three...

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Millager Company is a U.S.-based multinational corporation with the U.S. dollar (USD) as its reporting currency. To prepare consolidated financial statements for 2020, the company must trans- late the...

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The accountant for the City of Abernethy calls the local CPA firm that audits the city’s financial statements with a question. “At the start of the current year, city officials signed a contract to le...

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On January 3, 2019, Persoff Corporation acquired all of the outstanding voting stock of Sea Cliff, Inc., in exchange for $6,000,000 in cash. Persoff elected to exercise control over Sea Cliff as a who...

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On January 1, 2020, Prestige Corporation acquired 100 percent of the voting stock of Stylene Corporation in exchange for $2,030,000 in cash and securities. On the acquisition date, Stylene had the fol...

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On January 1, 2020, Pinnacle Corporation exchanged $3,200,000 cash for 100 percent of the out- standing voting stock of Strata Corporation. On the acquisition date, Strata had the following balance sh...

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On January 1, 2021, Brooks Corporation exchanged $1,183,000 fair-value consideration for all of the outstanding voting stock of Chandler, Inc. At the acquisition date, Chandler had a book value equal...

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On January 1, 2021, Johnsonville Enterprises, Inc., acquired 80 percent of Stayer Company’s out- standing common shares in exchange for $3,000,000 cash. The price paid for the 80 percent owner- ship i...

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Plaza, Inc., acquires 80 percent of the outstanding common stock of Stanford Corporation on January 1, 2021, in exchange for $900,000 cash. At the acquisition date, Stanford’s total...

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On January 1, 2019, Parflex Corporation exchanged $344,000 cash for 90 percent of Eagle Corporation’s outstanding voting stock. Eagle’s acquisition date balance she...

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On January 1, 2020, Holland Corporation paid $8 per share to a group of Zeeland Corporation shareholders to acquire 60,000 shares of Zeeland’s outstanding voting stock, representing...

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The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $7.20 per share on January 1, 2020. The remaining 20 percent of Devine’s share...

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Following are partially completed financial statements (income statement, statement of retained earnings, and balance sheet) for Shaker Corporation. Complete the financial statements. All amounts are...

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Q: On October 1, 2018, Elise Pulito opened Tree City Cafe

On October 1, 2018, Elise Pulito opened Tree City Cafe, Inc. Pulito is now at a crossroads. The October financial statements paint a glowing picture of the business, and Pulito has asked you whether s...

Q: This and similar cases in succeeding chapters are based on the consolidated

This and similar cases in succeeding chapters are based on the consolidated financial statements of Apple Inc. shown in Appendix A and online in the filings section of www.sec.gov. Requirements: 1....

Q: This and similar cases in each chapter are based on the 2016

This and similar cases in each chapter are based on the 2016 consolidated financial statements of Under Armour, Inc. You can retrieve the 2016 Under Armour financial statements at www.sec.gov by click...

Q: Analyze basic financial statement information (Learning Objectives 3, 4)

Analyze basic financial statement information (Learning Objectives 3, 4) Note: This mini-case is the first part of The Cheesecake Factory serial case contained in every chapter in this textbook. The C...

Q: If the partners in Bloom Partnership, a floral design shop,

If the partners in Bloom Partnership, a floral design shop, want the financial statements to show the procedures used to allocate the partnership profit among the partners, on what financial statement...

Q: Heritage Architect Company of Manitoba purchased some modular office furniture on March

Heritage Architect Company of Manitoba purchased some modular office furniture on March 10, 2020 that had a cost of $290,000 (ignore GST/PST). Show the journal entries that would record this purchase...

Q: Refer to the financial statements for WestJet, looking at the consolidated

Refer to the financial statements for WestJet, looking at the consolidated statements of changes in equity. What were the total cash dividends declared and paid during the year ended December 31, 2016...

Q: Refer again to the financial statements for WestJet, looking at the

Refer again to the financial statements for WestJet, looking at the consolidated statements of cash flows. Notice the same cash dividends paid during the year ended December 31, 2016 and December 31,...

Q: Refer to the financial statements for WestJet, specifically Note 12.

Refer to the financial statements for WestJet, specifically Note 12. What was the amount during 2017 of the dividends per share?

Q: Refer to the financial statements for Indigo. The balance in share

Refer to the financial statements for Indigo. The balance in share capital at April 1, 2017, was 26,351,484 shares. What is the balance as of March 31, 2018? What caused the change in share capital fr...

Q: Refer to the financial statements for Spin Master. Did basic EPS

Refer to the financial statements for Spin Master. Did basic EPS increase or decrease from 2016 to 2017?

Q: Refer to the financial statements for WestJet. In both 2016 and

Refer to the financial statements for WestJet. In both 2016 and 2017 the balance of shares issued and outstanding was reduced. What caused the balance of the account to go down? And what had shares be...

Q: After taking five years’ straight-line depreciation expense for an asset

After taking five years’ straight-line depreciation expense for an asset that was expected to have an eight year useful life, a company decided that the asset would last another six years. Is this dec...

Q: Refer to the financial statements for WestJet and calculate the percentage change

Refer to the financial statements for WestJet and calculate the percentage change in total revenues from 2016 to 2017.

Q: Refer to the financial statements for WestJet and calculate the percentage change

Refer to the financial statements for WestJet and calculate the percentage change in sales and marketing expenses from 2016 to 2017.

Q: What is the difference between comparative financial statements and common-size

What is the difference between comparative financial statements and common-size comparative statements?

Q: Refer to the financial statements for Spin Master and calculate the percentage

Refer to the financial statements for Spin Master and calculate the percentage change in revenue from December 31, 2016, to December 31, 2017.

Q: Refer to the financial statements for Spin Master and calculate the percentage

Refer to the financial statements for Spin Master and calculate the percentage change in non-current liabilities from December 31, 2016 to December 31, 2017.

Q: 5-Star Adventures Inc. financed its $1,000

5-Star Adventures Inc. financed its $1,000,000 expansion by issuing on January 1, 2020, a 5%, 10-year bond dated the same day with annual interest payments to be made each December 31. The market inte...

Q: Selected information taken from the December 31, 2020, financial statements

Selected information taken from the December 31, 2020, financial statements for Mesa Company is shown below for the year just ended: The accountant was not sure about how to handle a few transactions...

Q: Marcia Diamond is a small business owner who handles all the books

Marcia Diamond is a small business owner who handles all the books for her business. Her company just finished a year in which a large amount of borrowed funds were invested into a new building additi...

Q: Design Pro purchased on October 1, 2019, $110,

Design Pro purchased on October 1, 2019, $110,000 of furniture that was put into service on November 10, 2019. The furniture will be used for five years and then donated to a charity. Complete the sch...

Q: Kane Biotech was preparing the annual financial statements and, as part

Kane Biotech was preparing the annual financial statements and, as part of the year-end procedures, assessed the assets and prepared the following alphabetized schedule based on adjusted values at Dec...

Q: In preparing the annual financial statements for Jade Oil Inc., the

In preparing the annual financial statements for Jade Oil Inc., the correct manner of reporting the following items was not clear to the company’s employees. Explain where each of the following items...

Q: Prepare entries to record the following non-strategic investment transactions of

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:...

Q: The following information is available from the financial statements of Landscape Enhancements

The following information is available from the financial statements of Landscape Enhancements Inc.: Calculate Landscape Enhancements’ return on total assets for 2019 and 2020. (Roun...

Q: Refer to the financial statements for Spin Master and WestJet.

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, Te...

Q: Tropical Vacation Inc. has tentatively prepared its financial statements for the

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, 202...

Q: Barry Bowtie incorporated his business under the name BowTie Fishing Expeditions Corp

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 com...

Q: WestJet is a a Canadian company with clear focus on its employees

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. Bel...

Q: Required: Answer the following questions by referring to the 2017 financial

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...

Q: Delta Corporation showed the following adjusted trial balance at its year-

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 balan...

Q: Refer to the financial statements for Spin Master, WestJet, Telus

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 unfav...

Q: Refer to the financial statements for each of Spin Master, Indigo

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 (t...

Q: On August 31, 2020, World Travel Consulting showed the following

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 base...

Q: 1. Which of the following is not an advantage of the

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 accumulat...

Q: 1. A share dividend involves the distribution of which of the

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 dec...

Q: 1. What are the four key building blocks of financial statement

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 ind...

Q: West Coast Tours runs boat tours along the West Coast of British

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, wi...

Q: Safety-First Company completed all of its October 31, 2020

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...

Q: Okanagan Refrigeration manufactures and markets commercial refrigeration systems for food trucks and

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...

Q: Range Energy Corp.’s financial statements for the current year ended

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, a...

Q: The 2020 financial statements of Outdoor Waterworks Inc. follow:

The 2020 financial statements of Outdoor Waterworks Inc. follow: Assume all sales were on credit. Also assume the long-term note payable is due in 2023, with no current portion. On the December 31, 20...

Q: Phantom Company was preparing the annual financial statements and, as part

Phantom Company was preparing the annual financial statements and, as part of its year-end procedures, prepared the following alphabetized schedule based on adjusted values at March 31, 2020: What, if...

Q: The 2020 four-year comparative financial statements of Digital Shelf Space

The 2020 four-year comparative financial statements of Digital Shelf Space Corp. follow: Required 1. Calculate the following for 2020 and 2019 and identify whether the ratios compare favourably (F) or...

Q: Both Dragon Corp. and Kent Inc. design, produce,

Both Dragon Corp. and Kent Inc. design, produce, market, and sell sports footwear. Key comparative figures (in thousands of dollars) from recent financial statements for these two organizations follow...

Q: Diamond Security Systems’ revenues for 2018 totaled $27.5 million

Diamond Security Systems’ revenues for 2018 totaled $27.5 million. As with most companies, Diamond is a defendant in lawsuits related to its products. Note 14 of the Diamond annual r...

Q: The financial statements of Mountainview Employment Services, Inc., reported the

The financial statements of Mountainview Employment Services, Inc., reported the following accounts (adapted, with dollar amounts in thousands except for par value): Net income has already been close...

Q: Carolina Company included the following items in its financial statements for 2018

Carolina Company included the following items in its financial statements for 2018, the current year (amounts in millions): Requirements: 1. Use DuPont Analysis to calculate Carolinaâ€...

Q: The financial statements of Noble Employment Services, Inc., reported the

The financial statements of Noble Employment Services, Inc., reported the following accounts (adapted, with dollar amounts in thousands except for par value): Net income has already been closed to Re...

Q: Data from the financial statements of Glowing Candle Company included the following

Data from the financial statements of Glowing Candle Company included the following: The company had no preferred stock. Requirements: 1. Calculate the following ratios: a. Net profit margin b. Asse...

Q: Virginia Company included the following items in its financial statements for 2018

Virginia Company included the following items in its financial statements for 2018, the current year (amounts in millions): Requirements: 1. Use DuPont Analysis to calculate Virginiaâ€...

Q: The financial statements of Explorer News, Inc., include the following

The financial statements of Explorer News, Inc., include the following items: Requirements: 1. Calculate the following ratios for 2018 and 2017. When calculating days, round your answer to the near...

Q: The financial statements of Big City News, Inc., include the

The financial statements of Big City News, Inc., include the following items: Requirements: 1. Calculate the following ratios for 2018 and 2017. When calculating days, round your answer to the neares...

Q: Handley Grocery Corporation reported the following information in its comparative financial statements

Handley Grocery Corporation reported the following information in its comparative financial statements for the fiscal year ended January 31, 2018: Requirements: 1. Compute the net profit margin ratio...

Q: Hometown Supply Company reported the following information in its comparative financial statements

Hometown Supply Company reported the following information in its comparative financial statements for the fiscal year ended January 31, 2018: Requirements: 1. Compute the net profit margin ratio for...

Q: Pine Systems’ revenues for LO 52018 totaled $27.1 million

Pine Systems’ revenues for LO 52018 totaled $27.1 million. As with most companies, Pine is a defendant in lawsuits related to its products. Note 14 of the Pine annual report for 2018...

Q: Randall Go-Karts sells motorized go-karts. Randall Go

Randall Go-Karts sells motorized go-karts. Randall Go-Karts are motorized and are typically purchased by amusement parks and other recreation facilities, but are also occasionally purchased by individ...

Q: Bennett Go-Karts sells motorized go-karts. Bennett Go

Bennett Go-Karts sells motorized go-karts. Bennett Go-Karts are motorized and are typically purchased by amusement parks and other recreation facilities, but are also occasionally purchased by individ...

Q: The accounting records of Burgess Foods, Inc., include the following

The accounting records of Burgess Foods, Inc., include the following items at December 31, 2018: Requirements: 1. Show how each relevant item would be reported on the Burgess Foods classified balance...

Q: The notes to the Alliance Ltd. financial statements reported the following

The notes to the Alliance Ltd. financial statements reported the following data on December 31, Year 1 (end of the fiscal year): Alliance amortizes bond discounts using the effective-interest method...

Q: Caribbean Sales, Inc., sells electronics and appliances. The excerpts

Caribbean Sales, Inc., sells electronics and appliances. The excerpts that follow are adapted from Caribbean’s financial statements for 2018 and 2017 Requirements: 1. How much was C...

Q: Savanaugh Stores, Inc., sells electronics and appliances. The excerpts

Savanaugh Stores, Inc., sells electronics and appliances. The excerpts that follow are adapted from Savanaugh’s financial statements for 2018 and 2017. Requirements: 1. How much was...

Q: The notes to the Thorson Ltd. financial statements reported the

The notes to the Thorson Ltd. financial statements reported the following data on December 31, Year 1 (end of the fiscal year): Thorson amortizes bond discounts using the effective-interest method a...

Q: The accounting records of Brigham Foods, Inc., include the following

The accounting records of Brigham Foods, Inc., include the following items at December 31, 2018: Requirements: 1. Show how each relevant item would be reported on the Brigham Foods classified balance...

Q: Which of the following statements is false? a. A

Which of the following statements is false? a. A contingent liability should be disclosed in the notes to the financial statements if there is a reasonable possibility that a loss (or expense) will o...

Q: Jasmine Corporation purchased inventory costing $125,000 and sold 75

Jasmine Corporation purchased inventory costing $125,000 and sold 75% of the goods for $163,750. All purchases and sales were on account. Jasmine later collected 25% of the accounts receivable. Assume...

Q: The financial statements of Ridgeline Employment Services, Inc., reported the

The financial statements of Ridgeline Employment Services, Inc., reported the following accounts: Prepare the stockholders’ equity section of Ridgeline’s balance s...

Q: Toyama Corporation’s 2018 financial statements reported the following information, with

Toyama Corporation’s 2018 financial statements reported the following information, with 2017 figures shown for comparison (adapted, and in millions): Use the DuPont model to calcul...

Q: This case is part of The Cheesecake Factory serial case contained in

This case is part of The Cheesecake Factory serial case contained in every chapter in this textbook. Like many other large companies, The Cheesecake Factory Incorporated has several legal actions pend...

Q: Thompson Turf Trimmers, Inc., reported the following financial statements for

Thompson Turf Trimmers, Inc., reported the following financial statements for 2018: Calculate the following investing cash flows; enter all amounts in thousands. a. Acquisitions of plant assets (all...

Q: Use the financial statements of Metro Corporation in S12-6 and

Use the financial statements of Metro Corporation in S12-6 and S12-7. 1. Calculate the company’s debt ratio at December 31, 2018. 2. Calculate the company’s times-i...

Q: Use the financial statements of Metro Corporation in S12-6 and

Use the financial statements of Metro Corporation in S12-6 and S12-7 to calculate these profitability measures for 2018. Show each calculation. a. Rate of return on sales b. Asset turnover ratio c. Ra...

Q: The following data (dollar amounts in millions) are taken from

The following data (dollar amounts in millions) are taken from the financial statements of Quantrill Industries, Inc.: Requirement: 1. Complete the following condensed balance sheet. Report amounts...

Q: The following data (dollar amounts in millions) are from the

The following data (dollar amounts in millions) are from the financial statements of Hill Corporation: Requirement: 1. Complete the following condensed income statement. Report amounts to the neares...

Q: To follow are The Cheesecake Factory Incorporated’s financial statements from its 2016

To follow are The Cheesecake Factory Incorporated’s financial statements from its 2016 Form 10-K. The preceding financial statements have been condensed and adapted for educational...

Q: Greensboro Golf Corporation’s long-term debt agreements make certain demands on

Greensboro Golf Corporation’s long-term debt agreements make certain demands on the business. For example, Greensboro may not purchase treasury stock in excess of the balance of retained earnings. Als...

Q: Luxe, Inc., reported the following in its financial statements for

Luxe, Inc., reported the following in its financial statements for the year ended May 31, 2018 (in thousands) Requirement: 1. Determine the following cash receipts and payments for Luxe during the fi...

Q: The Cheesecake Factory Incorporated (NASDAQ: CAKE) operates over 200

The Cheesecake Factory Incorporated (NASDAQ: CAKE) operates over 200 restaurants and two bakeries in the United States. In its two bakeries, it bakes and prepares more than 70 desserts, both for its...

Q: Are the international differences in the formats of financial statements a major

Are the international differences in the formats of financial statements a major obstacle to comparing the statements?

Q: How do preparers and users of annual financial statements of listed companies

How do preparers and users of annual financial statements of listed companies cope with international differences?

Q: ‘Substance over form is a recipe for failing to achieve comparability

‘Substance over form is a recipe for failing to achieve comparability between financial statements of different enterprises.’ Discuss.

Q: Why are leased assets accounted for differently in individual company financial statements

Why are leased assets accounted for differently in individual company financial statements in the United Kingdom and France?

Q: Discuss the view that the individual company financial statements in Germany are

Discuss the view that the individual company financial statements in Germany are useful only for tax purposes.

Q: a. Use an Excel spreadsheet to construct the required financial statements

a. Use an Excel spreadsheet to construct the required financial statements. To complete Requirement b, use formulas where normal arithmetic calculations are made within the financial statements (in pa...

Q: Consider the following brief descriptions of four companies from different industries.

Consider the following brief descriptions of four companies from different industries. Michaels Companies, the parent company of Michaels craft stores, claims to be the largest arts and crafts special...

Q: The following data were extracted from the 2018 financial statements of Penske

The following data were extracted from the 2018 financial statements of Penske Automotive Group, Inc. This company operates automobile dealerships, mostly in the United States, Canada, and Western Eur...

Q: Obtain Target Corporation’s annual report for its 2019 fiscal year (year

Obtain Target Corporation’s annual report for its 2019 fiscal year (year ended February 1, 2020) at http://investors.target.com using the instructions in Appendix B, and use it to answer the following...

Q: Crist Company operates a lawn-mowing service. Crist has chosen

Crist Company operates a lawn-mowing service. Crist has chosen to depreciate its equipment for financial statement purposes using the straight-line method. However, to save cash in the short run, Cris...

Q: Refer to Exercise 9-17A. Complete Requirements a, b

Refer to Exercise 9-17A. Complete Requirements a, b, c, and d using an Excel spreadsheet. Refer to Chapter 1, Problem ATC 1-8, for ideas on how to structure the spreadsheet. Data from Exercise 9-17A:...

Q: Corrugated Boxes Inc. is a U.S.-based company

Corrugated Boxes Inc. is a U.S.-based company that develops its financial statements under GAAP. The total amount of the company’s assets shown on its balance sheet for the current year was approximat...

Q: The following financial statements apply to Karl Company: /

The following financial statements apply to Karl Company: Required: Calculate the following ratios for Year 1 and Year 2. When data limitations prohibit computing averages, use year-end balances in yo...

Q: If a firm prepares one set of financial statements using U.

If a firm prepares one set of financial statements using U.S. GAAP and another using IFRS, will the financial ratios based on the U.S. GAAP financials differ from those based on the IFRS financials? E...

Q: Assume that you are Jolie Company’s accountant. Company owner Mary Jolie

Assume that you are Jolie Company’s accountant. Company owner Mary Jolie has reviewed the 2021 financial statements you prepared and questions the $6,000 loss reported on the sale of its investment in...

Q: Trey Co. entered into the following two transactions. Trey prepares

Trey Co. entered into the following two transactions. Trey prepares financial statements annually at December 31. a. Trey rents a building for $2,800 per month beginning December 1. By agreement, Trey...

Q: Refer to Apple’s financial statements in Appendix A. Assume that the

Refer to Apple’s financial statements in Appendix A. Assume that the owners, sometime during their first five years of business, desire to expand their computer product services to meet business deman...

Q: The following financial statements and additional information are reported. (1

The following financial statements and additional information are reported. (1) Prepare a statement of cash flows using the indirect method for the year ended June 30, 2021. (2) Compute the company&ac...

Q: Refer to For ten Company’s financial statements and related information in Problem

Refer to For ten Company’s financial statements and related information in Problem 16-3A. Required Prepare a complete statement of cash flows using the direct method. Disclose any noncash investing a...

Q: Refer to Golden Corporation’s financial statements and related information in Problem 16

Refer to Golden Corporation’s financial statements and related information in Problem 16-6A. Required Prepare a complete statement of cash flows using the direct method for the current year.

Q: Selected comparative financial statements of Heroin Company follow. /

Selected comparative financial statements of Heroin Company follow. Required 1. Compute trend percent’s for all components of both statements using 2015 as the base year. Round perc...

Q: Selected comparative financial statements of Korbin Company follow. /

Selected comparative financial statements of Korbin Company follow. Required 1. Compute each year’s current ratio. Round ratios to one decimal. 2. Express the income statement data...

Q: Refer to Apple’s financial statements in Appendix A to answer the following

Refer to Apple’s financial statements in Appendix A to answer the following. 1. For the fiscal year ended September 28, 2019, what amount is credited to Income Summary to summarize its revenues earned...

Q: Refer to Apple’s financial statements in Appendix A to answer the following

Refer to Apple’s financial statements in Appendix A to answer the following. Required 1. Assume that the amounts reported for inventories and cost of sales reflect items purchased in a form ready for...

Q: Use Apple’s financial statements in Appendix A to answer the following.

Use Apple’s financial statements in Appendix A to answer the following. Required 1. What amount of inventories did Apple report as a current asset (a) on September 28, 2019? (b) On September 29, 2018...

Q: Refer to Apple’s financial statements in Appendix A. 1.

Refer to Apple’s financial statements in Appendix A. 1. What amount of accounts payable did Apple report on (a) September 28, 2019? (b) On September 29, 2018? 2. Compute days’ payable outstanding for...

Q: Use Apple’s financial statements in Appendix A to answer the following.

Use Apple’s financial statements in Appendix A to answer the following. 1. Identify the total amount of cash and cash equivalents for fiscal years ended (a) September 28, 2019, and (b) September 29, 2...

Q: Selected comparative financial statements of Tripoli Company follow. /

Selected comparative financial statements of Tripoli Company follow. Required 1. Compute trend percent’s for all components of both statements using 2015 as the base year. Round per...

Q: Use Apple’s financial statements in Appendix A to answer the following.

Use Apple’s financial statements in Appendix A to answer the following. 1. What is the amount of Apple’s accounts receivable as of September 28, 2019? 2. Compute Apple’s accounts receivable turnover a...

Q: Refer to Apple’s financial statements in Appendix A to answer the following

Refer to Apple’s financial statements in Appendix A to answer the following. 1. What percent of the original cost of Apple’s Property, Plant and Equipment account remains to be depreciated as of (a) S...

Q: Use the table below and Apple’s financial statements in Appendix A to

Use the table below and Apple’s financial statements in Appendix A to answer the following. 1. Compute times interest earned for each of the three years shown. 2. Is Apple in a good...

Q: Use Apple’s financial statements in Appendix A to answer the following.

Use Apple’s financial statements in Appendix A to answer the following. 1. How many shares of Apple common stock are issued and outstanding at (a) September 28, 2019, and (b) September 29, 2018? 2. Wh...

Q: Use Apple’s financial statements in Appendix A to answer the following.

Use Apple’s financial statements in Appendix A to answer the following. Note: Apple’s long term debt is called “Term debt” under non-current liabilities. 1. Identify Apple’s long-term debt as reported...

Q: Use Apple’s financial statements in Appendix A to answer the following.

Use Apple’s financial statements in Appendix A to answer the following. 1. Compute Apple’s return on total assets for the years ended September 28, 2019, and September 29, 2018. 2. Is the change in Ap...

Q: Use Apple’s financial statements in Appendix A to answer the following.

Use Apple’s financial statements in Appendix A to answer the following. 1. Is Apple’s statement of cash flows prepared under the direct method or the indirect method? 2. For each fiscal year 2019, 201...

Q: Use Apple’s financial statements in Appendix A to answer the following.

Use Apple’s financial statements in Appendix A to answer the following. 1. Using fiscal 2017 as the base year, compute trend percent’s for fiscal years 2017, 2018, and 2019 for total net sales, total...

Q: Refer to Apple’s financial statements in Appendix A for the following questions

Refer to Apple’s financial statements in Appendix A for the following questions. Required 1. What amount of total liabilities does Apple report for each of the fiscal years ended (a) September 28, 20...

Q: Choose from the following list of terms and phrases to best complete

Choose from the following list of terms and phrases to best complete the statements below. a. Fiscal year c. Accrual basis accounting e. Cash basis accounting b. Timeliness d. Annual financial stateme...

Q: Use Apple’s financial statements in Appendix A to answer the following.

Use Apple’s financial statements in Appendix A to answer the following. 1. Compute Apple’s profit margin for fiscal years ended (a) September 28, 2019, and (b) September 29, 2018. 2. is the change in...

Q: After the success of the company’s first two months, Santana Rey

After the success of the company’s first two months, Santana Rey continues to operate Business Solutions. (Transactions for the first two months are described in the Chapter 2 seria...

Q: Threads Limited manufactures nuts and bolts, which are sold to industrial

Threads Limited manufactures nuts and bolts, which are sold to industrial users. The abbreviated financial statements for 2018 and 2019 are as follows: Dividends were paid on ordinary shares of &Acir...

Q: Bloomberg is an information services provider that offers real-time financial

Bloomberg is an information services provider that offers real-time financial data on the companies it monitors. This enables businesses to risk monitor these companies. A new development that Bloombe...

Q: Refer to the financial statements of The Home Depot in Appendix A

Refer to the financial statements of The Home Depot in Appendix A and Lowe’s in Appendix B at the end of this book. (Note: Fiscal 2016 for The Home Depot runs from February 1, 2016, to January 29, 201...

Q: Refer to the financial statements of The Home Depot in Appendix A

Refer to the financial statements of The Home Depot in Appendix A at the end of this book. (Note: Fiscal 2016 for The Home Depot runs from February 1, 2016, to January 29, 2017. See S1-1 for further e...

Q: Refer to the financial statements of The Home Depot in Appendix A

Refer to the financial statements of The Home Depot in Appendix A and Lowe’s in Appendix B at the end of this book. (Note: Fiscal 2016 for The Home Depot runs from February 1, 2016, to January 29, 201...

Q: Refer to the financial statements of The Home Depot in Appendix A

Refer to the financial statements of The Home Depot in Appendix A at the end of this book. (Note: Fiscal 2016 for The Home Depot runs from February 1, 2016, to January 29, 2017. See S1-1 for further e...

Q: Refer to the financial statements of The Home Depot in Appendix A

Refer to the financial statements of The Home Depot in Appendix A and Lowe’s in Appendix B at the end of this book. (Note: Fiscal 2016 for The Home Depot runs from February 1, 2016, to January 29, 201...

Q: Refer to the financial statements of The Home Depot in Appendix A

Refer to the financial statements of The Home Depot in Appendix A at the end of this book. (Note: Fiscal 2016 for The Home Depot runs from February 1, 2016, to January 29, 2017. See S1-1 for further e...

Q: Refer to the financial statements of The Home Depot in Appendix A

Refer to the financial statements of The Home Depot in Appendix A and Lowe’s in Appendix B at the end of this book. (Note: Fiscal 2016 for The Home Depot runs from February 1, 2016, to January 29, 201...

Q: Compute the following three ratios for The Home Depot’s year ended January

Compute the following three ratios for The Home Depot’s year ended January 29, 2017: (i) fixed asset turnover, (ii) days to sell, and (iii) debt-to-assets. To calculate the ratios, use the Fiscal 2016...

Q: Answer the following questions by referring to the financial statements of The

Answer the following questions by referring to the financial statements of The Home Depot in Appendix A at the end of this book. (Note: Fiscal 2016 for The Home Depot runs from February 1, 2016, to Ja...

Q: Refer to the financial statements of The Home Depot in Appendix A

Refer to the financial statements of The Home Depot in Appendix A and Lowe’s in Appendix B at the end of this book. (Note: Fiscal 2106 for The Home Depot runs from February 1, 2016, to January 29, 201...

Q: As a team, select an industry to analyze. Reuters provides

As a team, select an industry to analyze. Reuters provides lists of industries in the online stock screener at stockscreener.us.reuters.com/Stock/US. Another source is csimarket.com. Each group member...

Q: You are one of three stockholders who own and operate Mary’s Maid

You are one of three stockholders who own and operate Mary’s Maid Service. The company has been operating for seven years. One of the other stockholders has prepared the company’s annual financial sta...

Q: One Trick Pony (OTP) incorporated and began operations near the

One Trick Pony (OTP) incorporated and began operations near the end of the year, resulting in the following post-closing balances at December 31: The following information is relevant to the first mo...

Q: What are consolidated financial statements and what do they attempt to accomplish

What are consolidated financial statements and what do they attempt to accomplish?

Q: The following information was reported in the December 31, 2017,

The following information was reported in the December 31, 2017, financial statements of National Airways, Inc. (listed alphabetically, amounts in millions). 1. Prepare an income statement for the yea...

Q: The following accounts are taken from the financial statements of Facebook Inc

The following accounts are taken from the financial statements of Facebook Inc. at September 30, 2016. (Amounts are in millions.) Required: 1. Prepare a classified balance sheet at September 30, 2016...

Q: Andy’s Autobody Shop has the following balances at the beginning of September

Andy’s Autobody Shop has the following balances at the beginning of September: Cash, $10,000; Accounts Receivable, $1,450; Equipment, $40,000; Accounts Payable, $2,000; Common Stock, $20,000; and Reta...

Q: The following accounts are taken from Equilibrium Riding, Inc., a

The following accounts are taken from Equilibrium Riding, Inc., a company that specializes in occupational therapy and horseback riding lessons, as of December 31. Required: Using the unadjusted tri...

Q: Kijijo Auctions runs an online auction company. Its end-of

Kijijo Auctions runs an online auction company. Its end-of-year financial statements indicate the following results. Calculate the company’s net profit margin expressed as a percent...

Q: An analysis of transactions made during July by NepCo, an Internet

An analysis of transactions made during July by NepCo, an Internet service provider, during its first month of operations is shown below. Increases and decreases affecting revenues and expenses are ex...

Q: Adobe Systems Incorporated reported the following accounts and amounts (in millions

Adobe Systems Incorporated reported the following accounts and amounts (in millions) in its financial statements for the year ended December 2, 2016. Prepare a classified balance sheet. The Allowance...

Q: For each of the following, indicate whether the item would be

For each of the following, indicate whether the item would be reported on the balance sheet (B/S), reported on the income statement (I/S), or not shown in the financial statements (Not). Also indicate...

Q: For each of the following, indicate whether it would be reported

For each of the following, indicate whether it would be reported on the balance sheet (B/S), reported on the income statement (I/S), or not shown in the company’s financial statement...

Q: Peterson Furniture Designs is preparing the annual financial statements dated December 31

Peterson Furniture Designs is preparing the annual financial statements dated December 31. Ending inventory information about the five major items stocked for regular sale follows: Required: 1. Comp...

Q: Sandals Company is preparing the annual financial statements dated December 31.

Sandals Company is preparing the annual financial statements dated December 31. Ending inventory is presently recorded at its total cost of $5,465. Information about its inventory it Required: 1. Co...

Q: Polaris Industries Inc. is the biggest snowmobile manufacturer in the world

Polaris Industries Inc. is the biggest snowmobile manufacturer in the world. It reported the following amounts in its financial statements (in millions): Required: 1. Calculate to one decimal place...

Q: Trevorson Electronics is a small company privately owned by Jon Trevorson,

Trevorson Electronics is a small company privately owned by Jon Trevorson, an electrician who installs wiring in new homes. Because the company’s financial statements are prepared only for tax purpose...

Q: Iconix Brand Group owns and markets various brands and trademarks, including

Iconix Brand Group owns and markets various brands and trademarks, including Joe Boxer, London Fog, Ocean Pacific, Ecko Unltd., Umbro, Ed Hardy, Lee Cooper, Buffalo, and Peanuts. The companyâ
...

Q: Swimtech Pools Inc. (SPI) reported the following in its

Swimtech Pools Inc. (SPI) reported the following in its financial statements for the quarter ended March 31, 2018. During the quarter ended March 31, SPI reported Net Income of $5,000 and declared an...

Q: Bart Company had outstanding 30,000 shares of common stock,

Bart Company had outstanding 30,000 shares of common stock, par value $10 per share. On January 1, 2018, Homer Company purchased some of these shares at $25 per share. At the end of 2018, Bart Company...

Q: Fitbit, Inc., reported the following information for the nine-

Fitbit, Inc., reported the following information for the nine-month period ended October 1, 2016. Items are listed alphabetically and are in thousands of dollars. Required: Prepare the four basic fi...

Q: Smart Company prepared its annual financial statements dated December 31. The

Smart Company prepared its annual financial statements dated December 31. The company reported its inventory using the FIFO inventory costing method and failed to evaluate its net realizable value at...

Q: GameStop Corp. is the world’s largest multichannel video game retailer.

GameStop Corp. is the world’s largest multichannel video game retailer. The company reported the following amounts (in millions) in its annual financial statements at the end of Janu...

Q: Callaway Golf Company sells on account to golf pro shops and general

Callaway Golf Company sells on account to golf pro shops and general sporting goods retailers. In its financial statements for the year ended December 31, 2015, Callaway reported the following balance...

Q: Jung & Newbicalm Advertising (JNA) recently hired a new creative

Jung & Newbicalm Advertising (JNA) recently hired a new creative director, Howard Rachell, for its Madison Avenue office in New York. To persuade Howard to move from San Francisco, JNA agreed to advan...

Q: Sikes Corporation, whose annual accounting period ends on December 31,

Sikes Corporation, whose annual accounting period ends on December 31, issued the following bonds: Required: 1. For each of the three independent cases that follow, provide the amounts to be reporte...

Q: Hunter Company is developing its annual financial statements at December 31.

Hunter Company is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income sta...

Q: Golden Corporation declared and paid $3,000 of cash dividends

Golden Corporation declared and paid $3,000 of cash dividends during the current year ended December 31. Its financial statements also reported the following summarized data: Required: 1. Complete t...

Q: Use the data given in CP13-1 for Golden Corporation.

Use the data given in CP13-1 for Golden Corporation. Required: 1. Compute the gross profit percentage for the current and previous years. Round the percentages to one decimal place. Are the current...

Q: The financial statements for Armstrong and Blair companies are summarized here:

The financial statements for Armstrong and Blair companies are summarized here: The companies are in the same line of business and are direct competitors in a large metropolitan area. Both have been...

Q: Lisa Company had outstanding 100,000 shares of common stock.

Lisa Company had outstanding 100,000 shares of common stock. On January 10, 2018, Marg Company purchased a block of these shares in the open market at $20 per share, with the intent of holding the sha...

Q: The following information for the year ended December 31, 2016,

The following information for the year ended December 31, 2016, was reported by Nice Bite, Inc. Required: Prepare the four basic financial statements for 2016.

Q: Springer Anderson Gymnastics prepared its annual financial statements dated December 31.

Springer Anderson Gymnastics prepared its annual financial statements dated December 31. The company reported its inventory using the LIFO inventory costing method but did not compare the cost of its...

Q: Harman International Industries is a world-leading producer of loudspeakers and

Harman International Industries is a world-leading producer of loudspeakers and other electronics products, which are sold under brand names like JBL, Infinity, and Harman/Kardon. The company reported...

Q: C&S Marketing (CSM) recently hired a new marketing

C&S Marketing (CSM) recently hired a new marketing director, Jeff Otos, for its downtown Minneapolis office. As part of the arrangement, CSM agreed on February 28, 2018, to advance Jeff $50,000 on a o...

Q: Net Work Corporation, whose annual accounting period ends on December 31

Net Work Corporation, whose annual accounting period ends on December 31, issued the following bonds: Required: For each of the three independent cases that follow, provide the amounts to be reporte...

Q: Macromedia, Inc., is the original maker of shockwave and flash

Macromedia, Inc., is the original maker of shockwave and flash technologies. One of its annual reports indicated a lawsuit had been filed against the company and five of its former officers for securi...

Q: XS Supply Company is developing its annual financial statements at December 31

XS Supply Company is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income...

Q: The financial statements for Royale and Cavalier companies are summarized here:

The financial statements for Royale and Cavalier companies are summarized here: These two companies are in the same business and state but different cities. Each company has been in operation for abo...

Q: Cheese Factory Incorporated reported the following information for the fiscal year ended

Cheese Factory Incorporated reported the following information for the fiscal year ended August 31, 2018. Required: Prepare the four basic financial statements for the fiscal year ended August 31, 2...

Q: Mondetta Clothing prepared its annual financial statements dated December 31. The

Mondetta Clothing prepared its annual financial statements dated December 31. The company used the FIFO inventory costing method, but it failed to evaluate the net realizable value of its ending inven...

Q: Amazon.com reported the following amounts in its financial statements (

Amazon.com reported the following amounts in its financial statements (in millions): Required: 1. Determine the inventory turnover ratio and average days to sell inventory for 2015 and 2014. Round t...

Q: Stinson Company recently agreed to loan an employee $100,000

Stinson Company recently agreed to loan an employee $100,000 for the purchase of a new house. The loan was executed on May 31, 2018, and is a one-year, 6 percent note, with interest payments required...

Q: Marshalls Corporation completed a $500,000, 7 percent bond

Marshalls Corporation completed a $500,000, 7 percent bond issue on January 1, 2018. The bonds pay interest each December 31 and mature 10 years from January 1, 2018. Required: For each of the thre...

Q: Audio City, Inc., is developing its annual financial statements at

Audio City, Inc., is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income...

Q: The financial statements for Thor and Gunnar companies are summarized here:

The financial statements for Thor and Gunnar companies are summarized here: These two companies are in the same business and state but different cities. Each company has been in operation for about 1...

Q: Refer to the financial statements of The Home Depot in Appendix A

Refer to the financial statements of The Home Depot in Appendix A at the end of this book. (Note: Fiscal 2016 for The Home Depot runs from February 1, 2016, to January 29, 2017. See S1-1 for further e...

Q: Refer to the financial statements of The Home Depot in Appendix A

Refer to the financial statements of The Home Depot in Appendix A and Lowe’s in Appendix B. (Note: Fiscal 2106 for The Home Depot runs from February 1, 2016, to January 29, 2017. Fiscal 2016 for Lowe’...

Q: Refer to the financial statements of The Home Depot in Appendix A

Refer to the financial statements of The Home Depot in Appendix A at the end of this book. (Note: Fiscal 2016 for The Home Depot runs from February 1, 2016, to January 29, 2017. See S1-1 for further e...

Q: Refer to the financial statements of The Home Depot in Appendix A

Refer to the financial statements of The Home Depot in Appendix A and Lowe’s in Appendix B at the end of this book. (Note: Fiscal 2016 for The Home Depot runs from February 1, 2016, to January 29, 2...

Q: Refer to the financial statements of The Home Depot in Appendix A

Refer to the financial statements of The Home Depot in Appendix A at the end of this book. (Note: Fiscal 2016 for The Home Depot runs from February 1, 2016, to January 29, 2017. See S1-1 for further e...

Q: Refer to the financial statements of The Home Depot in Appendix A

Refer to the financial statements of The Home Depot in Appendix A and Lowe’s in Appendix B at the end of this book. (Note: Fiscal 2016 for The Home Depot runs from February 1, 2016, to January 29, 201...

Q: Assume you work as an assistant accountant in the head office of

Assume you work as an assistant accountant in the head office of a DVD movie kiosk business, similar to Outerwall’s Redbox machines. With the popularity of online movie rental operations, your company...

Q: Refer to the financial statements of The Home Depot in Appendix A

Refer to the financial statements of The Home Depot in Appendix A at the end of this book. (Note: Fiscal 2016 for The Home Depot runs from February 1, 2016, to January 29, 2017. See S1-1 for further e...

Q: Refer to the financial statements of The Home Depot in Appendix A

Refer to the financial statements of The Home Depot in Appendix A and Lowe’s in Appendix B at the end of this book. (Note: Fiscal 2016 for The Home Depot runs from February 1, 2016, Refer to the finan...

Q: Refer to the financial statements of The Home Depot in Appendix A

Refer to the financial statements of The Home Depot in Appendix A at the end of this book. (Note: Fiscal 2016 for The Home Depot runs from February 1, 2016, to January 29, 2017. See S1-1 for further e...

Q: Refer to the financial statements of The Home Depot in Appendix A

Refer to the financial statements of The Home Depot in Appendix A and Lowe’s in Appendix B at the end of this book.  (Note: Fiscal 2016 for The Home Depot runs from February 1, 2016, to January 29, 20...

Q: Refer to the financial statements of The Home Depot in Appendix A

Refer to the financial statements of The Home Depot in Appendix A at the end of this book. (Note: Fiscal 2016 for The Home Depot runs from February 1, 2016, to January 29, 2017. See S1-1 for further e...

Q: Refer to the financial statements of The Home Depot in Appendix A

Refer to the financial statements of The Home Depot in Appendix A and Lowe’s in Appendix B at the end of this book. (Note: Fiscal 2016 for The Home Depot runs from February 1, 2016, to January 29, 201...

Q: Refer to the financial statements of The Home Depot in Appendix A

Refer to the financial statements of The Home Depot in Appendix A at the end of this book. (Note: Fiscal 2016 for The Home Depot runs from February 1, 2016, to January 29, 2017. See S1-1 for further e...

Q: Refer to the financial statements of Lowe’s in Appendix B at the

Refer to the financial statements of Lowe’s in Appendix B at the end of this book.  1. Does the company report Accounts Receivable or an Allowance for Doubtful Accounts on its balance sheet? Explain...

Q: Refer to the financial statements of The Home Depot in Appendix A

Refer to the financial statements of The Home Depot in Appendix A at the end of this book. (Note: Fiscal 2016 for The Home Depot runs from February 1, 2016, to January 29, 2017. See S1-1 for further e...

Q: Felicia Company acquired 21,000 of the 60,000 shares

Felicia Company acquired 21,000 of the 60,000 shares of outstanding common stock of Nueces Corporation as a long-term investment. The annual accounting period for both companies ends December 31. The...

Q: Holtz Rubenstein Reminick, CPAs, audited year-end financial statements

Holtz Rubenstein Reminick, CPAs, audited year-end financial statements of Quality Food Brands, Inc., and related companies. Signature Bank, relying upon the audited financial reports prepared by Holtz...

Q: Girard & Company, Certified Public Accountants, audited the financial statements

Girard & Company, Certified Public Accountants, audited the financial statements included in the annual report submitted by PMG Enterprises, Inc., to the Secu- rities and Exchange Commission (SEC). Th...

Q: John P. Butler Accountancy Corporation agreed to audit the financial statements

John P. Butler Accountancy Corporation agreed to audit the financial statements of Westside Mortgage, Inc., a mortgage company that arranged financing for real property, for the year ending December 3...

Q: The Sassawinni First Nation is located adjacent to a town in northern

The Sassawinni First Nation is located adjacent to a town in northern Saskatchewan. The Nation is under the jurisdiction of the federal government’s Aboriginal Affairs and Northern Development Canada,...

Q: Tropical Juices Limited (Tropical) was incorporated under Canadian federal legislation

Tropical Juices Limited (Tropical) was incorporated under Canadian federal legislation two years ago to sell Citrus’s juices in Canada. Citrus Growers Cooperative (Citrus) of the United States and Bot...

Q: Identify three line items on each of the statement of financial position

Identify three line items on each of the statement of financial position and statement of operations for a not for- profit organization that would not typically be seen on or would differ from the fin...

Q: On January 2, Year 4, Poplar Ltd. purchased 80

On January 2, Year 4, Poplar Ltd. purchased 80% of the outstanding shares of Spruce Ltd. for $2,000,000. At that date, Spruce had common shares of $500,000 and retained earnings of $1,250,000 and accu...

Q: Following are the financial statements of Malkin Inc., of Russia,

Following are the financial statements of Malkin Inc., of Russia, as at December 31, Year 11: Additional Information . On January 1, Year 11, Crichton Corporation of Toronto acquired 40% of Malkin&ac...

Q: The financial statements of Post Corporation and its subsidiary, Sage Company

The financial statements of Post Corporation and its subsidiary, Sage Company, as at December 31, Year 6, are presented below. STATEMENTS OF FINANCIAL POSITION December 31, Year 6 Additional Informat...

Q: Paper Corp. purchased 70% of the outstanding shares of Sand

Paper Corp. purchased 70% of the outstanding shares of Sand Ltd. on January 1, Year 2, at a cost of $84,000. Paper has always used the equity method to account for its investments. On January 1, Year...

Q: The OPI Long Term Care Centre is an NFPO funded by government

The OPI Long Term Care Centre is an NFPO funded by government grants and private donations. It prepares its annual financial statements using the deferral method of accounting for contributions, and i...

Q: Connor Ltd. is a large private company owned by the Connor

Connor Ltd. is a large private company owned by the Connor family. It operates a manufacturing business in northern Ontario. It has applied to the ICB bank for a new loan of $100 million to expand its...

Q: Becker Ltd. is a private Canadian company. It has been

Becker Ltd. is a private Canadian company. It has been preparing its financial statements in accordance with ASPE but is now considering a change to IFRS. For its Year 4 financial statements, Becker r...

Q: Maurice Ltd. is a private Canadian company. It has been

Maurice Ltd. is a private Canadian company. It has been preparing its financial statements in accordance with IFRS but is now considering a change to ASPE. For its Year 6 financial statements, Maurice...

Q: When accounting for the acquisition of a non–wholly owned subsidiary

When accounting for the acquisition of a non–wholly owned subsidiary, the parent can use the fair value enterprise method or the identifiable net assets method to account for the business combination....

Q: Access the 2017 consolidated financial statements for Empire Company Limited by going

Access the 2017 consolidated financial statements for Empire Company Limited by going to the investor relations section of the company’s website. Answer the questions below. Round percentages to one d...

Q: Access the 2017 consolidated financial statements for Onex Corporation by going to

Access the 2017 consolidated financial statements for Onex Corporation by going to the investor relations section of the company’s website. Answer the questions below. For each question, indicate wher...

Q: Access the 2017 consolidated financial statements for Rogers Communications Inc. by

Access the 2017 consolidated financial statements for Rogers Communications Inc. by going to the investor relations section of the company’s website. Answer the questions below. For each question, ind...

Q: Access the 2017 annual report for Manulife Financial Corporation by going to

Access the 2017 annual report for Manulife Financial Corporation by going to investor relations section of the company’s website. Answer the questions below. For each question, indicate where in the M...

Q: Go to the website of the University of Saskatchewan (www.

Go to the website of the University of Saskatchewan (www.usask.ca/reporting). Search for the 2017 financial statements and answer the following questions for 2017. For each question, indicate where in...

Q: Access the 2017 consolidated financial statements for Bell Canada Enterprises Inc.

Access the 2017 consolidated financial statements for Bell Canada Enterprises Inc. by going to the investor relations section of the company’s website. Answer the questions below. Round percentages to...

Q: When accounting for the acquisition of a non–wholly owned subsidiary

When accounting for the acquisition of a non–wholly owned subsidiary, the parent can use the fair value enterprise method or the identifiable net assets method to account for the business combination....

Q: Access the 2017 consolidated financial statements for Goldcorp Inc. by going

Access the 2017 consolidated financial statements for Goldcorp Inc. by going to the investor relations section of the company’s website. Answer the questions below. For each question, indicate where i...

Q: Access the 2017 consolidated financial statements for Barrick Gold Corporation by going

Access the 2017 consolidated financial statements for Barrick Gold Corporation by going to investor relations section of the company’s website. Answer the questions below. For each question, indicate...

Q: Access the 2017 consolidated financial statements for Loblaw Companies Limited by going

Access the 2017 consolidated financial statements for Loblaw Companies Limited by going to investor relations section of the company’s website. Answer the questions below. Round percentages to one dec...

Q: Pluto Technology Venture (PTV) is an unincorporated joint operation with

Pluto Technology Venture (PTV) is an unincorporated joint operation with three current joint operators. A few other prospective investors are awaiting an opportunity to invest in PTV. PTV was organize...

Q: Target Corporation prepares its financial statements according to U.S.

Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 1, 2020, are available under the Investor Re...

Q: Air France–KLM (AF), a Franco-Dutch company

Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year end...

Q: U.S. Metallurgical Inc. reported the following balances in

U.S. Metallurgical Inc. reported the following balances in its financial statements and disclosure notes at December 31, 2023. U.S.M.’s actuary determined that 2024 service cost is $...

Q: On October 15, 2023, the board of directors of Martinez

On October 15, 2023, the board of directors of Martinez Materials Corporation approved a stock option plan for key executives. On January 1, 2024, 20 million stock options were granted, exercisable fo...

Q: Refer to the situation described in BE 11–20. Assume

Refer to the situation described in BE 11–20. Assume that SCC’s fair value of $40 million approximates fair value less costs to sell and that the present value of SCC’s estimated future cash flows is...

Q: Information from the financial statements of Park-Rao Industries included the

Information from the financial statements of Park-Rao Industries included the following at December 31, 2024: Park-Rao’s net income for the year ended December 31, 2024, is $520 mill...

Q: At December 31, 2024, the financial statements of Hollingsworth Industries

At December 31, 2024, the financial statements of Hollingsworth Industries included the following: Required: Compute basic and diluted EPS for the year ended December 31, 2024.

Q: Refer to the situation described in P 19–2. Assume

Refer to the situation described in P 19–2. Assume Partner prepares its financial statements using International Financial Reporting Standards (IFRS). Required: Determine the compensation expense rel...

Q: Sugar baker Designs Inc. changed from the FIFO inventory costing method

Sugar baker Designs Inc. changed from the FIFO inventory costing method to the average cost method during 2024. Which items from the 2023 financial statements should be restated on the basis of the av...

Q: You have been hired as the new controller for the Ralston Company

You have been hired as the new controller for the Ralston Company. Shortly after joining the company in 2024, you discover the following errors related to the 2022 and 2023 financial statements: a. In...

Q: The Collins Corporation purchased office equipment at the beginning of 2022 and

The Collins Corporation purchased office equipment at the beginning of 2022 and capitalized a cost of $2,000,000. This cost included the following expenditures: The company estimated an eight-year use...

Q: Whaley Distributors is a wholesale distributor of electronic components. Financial statements

Whaley Distributors is a wholesale distributor of electronic components. Financial statements for the years ended December 31, 2022 and 2023, reported the following amounts and subtotals ($ in million...

Q: Described below are six independent and unrelated situations involving accounting changes.

Described below are six independent and unrelated situations involving accounting changes. Each change occurs during 2024 before any adjusting entries or closing entries were prepared. Assume the tax...

Q: Portions of the financial statements for Parnell Company are provided below.

Portions of the financial statements for Parnell Company are provided below. Required: 1. Prepare the cash flows from operating activities section of the statement of cash flows for Parnell Company u...

Q: The fact that generally accepted accounting principles allow companies flexibility in choosing

The fact that generally accepted accounting principles allow companies flexibility in choosing between certain allocation methods can make it difficult for a financial analyst to compare periodic perf...

Q: Collins Corporation purchased office equipment at the beginning of 2022 and capitalized

Collins Corporation purchased office equipment at the beginning of 2022 and capitalized a cost of $2,000,000. This cost figure included the following expenditures: The company estimated an eight-year...

Q: Air France–KLM (AF), a Franco-Dutch company

Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year end...

Q: Nike, Inc., is a leading manufacturer of sports apparel,

Nike, Inc., is a leading manufacturer of sports apparel, shoes, and equipment. The company’s 2020 financial statements contain the following information ($ in millions): Assume that...

Q: Avon Products, Inc., located in New York City, is

Avon Products, Inc., located in New York City, is one of the world’s largest producers of beauty and related products. The company’s consolidated balance sheets for...

Q: Cansela Corporation reports inventory and cost of goods sold based on calculations

Cansela Corporation reports inventory and cost of goods sold based on calculations from a LIFO periodic inventory system. The company began 2024 with inventory of 4,500 units of its only product. The...

Q: You have been hired as the new controller for the Radiance Company

You have been hired as the new controller for the Radiance Company. Shortly after joining the company in 2024, you discover the following errors related to the 2022 and 2023 financial statements: a. I...

Q: The December 31, 2024, inventory of Tog Company, based

The December 31, 2024, inventory of Tog Company, based on a physical count, was determined to be $450,000. Included in that count was a shipment of goods received from a supplier at the end of the mon...

Q: Capwell Corporation uses a periodic inventory system. The company’s ending inventory

Capwell Corporation uses a periodic inventory system. The company’s ending inventory on December 31, 2024, its fiscal-year end, based on a physical count, was determined to be $326,000. Capwell’s unad...

Q: McGuire Corporation began operations in 2024. The company purchases computer equipment

McGuire Corporation began operations in 2024. The company purchases computer equipment from manufacturers and then sells to retail stores. During 2024, the bookkeeper used a check register to record a...

Q: Target Corporation prepares its financial statements according to U.S.

Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 1, 2020, are available in Connect. This mate...

Q: Target Corporation prepares its financial statements according to U.S.

Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 1, 2020, are available in Connect. This mate...

Q: Target Corporation prepares its financial statements according to U.S.

Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 1, 2020, are available in Connect. This mate...

Q: Target Corporation prepares its financial statements according to U.S.

Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 1, 2020, are available in Connect. This mate...

Q: Target Corporation prepares its financial statements according to U.S.

Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 1, 2020, are available in Connect. This mate...

Q: Target Corporation prepares its financial statements according to U.S.

Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 1, 2020, are available in Connect. This mate...

Q: Target Corporation prepares its financial statements according to U.S.

Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 1, 2020, are available in Connect. This mate...

Q: Target Corporation prepares its financial statements according to U.S.

Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 1, 2020, are available in Connect. This mate...

Q: Target Corporation prepares its financial statements according to U.S.

Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 1, 2020, are available in Connect. This mate...

Q: Target Corporation prepares its financial statements according to U.S.

Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 1, 2020, are available in Connect. This mate...

Q: Target Corporation prepares its financial statements according to U.S.

Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 1, 2020, are available in Connect. This mate...

Q: Air France–KLM (AF), a Franco-Dutch company

Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year end...

Q: Air France–KLM (AF), a Franco-Dutch company

Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements a...

Q: Air France–KLM (AF), a Franco-Dutch company

Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year end...

Q: Air France-KLM (AF), a Franco-Dutch company

Air France-KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year end...

Q: Air France–KLM (AF), a Franco-Dutch company

Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements According to International Financial Reporting Standards. AF’s financial statements a...

Q: Coulson Company is in the process of refinancing some long-term

Coulson Company is in the process of refinancing some long-term debt. Its fiscal year ends on December 31, 2024, and its financial statements will be issued on March 15, 2025. Under current U.S. GAAP,...

Q: Flexner Company is in the process of refinancing some long-term

Flexner Company is in the process of refinancing some long-term debt. Its fiscal year ends on December 31, 2024, and its financial statements will be issued on March 15, 2025. Under current IFRS, how...

Q: At March 13, 2025, the Securities Exchange Commission is in

At March 13, 2025, the Securities Exchange Commission is in the process of investigating a possible securities law violation by Now Chemical. The SEC has not yet proposed a penalty assessment. Now’s f...

Q: Horizon Corporation manufactures personal computers. The company began operations in 2019

Horizon Corporation manufactures personal computers. The company began operations in 2019 and reported profits for the years 2019 through 2022. Due primarily to increased competition and price slashin...

Q: Air France–KLM (AF), a Franco-Dutch company

Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year end...

Q: Target Corporation prepares its financial statements according to U.S.

Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 1, 2020, are available in Connect. This mate...

Q: McLaughlin Corporation uses the allowance method to account for bad debts.

McLaughlin Corporation uses the allowance method to account for bad debts. At the end of the company’s fiscal year, accounts receivable are analyzed and the allowance for uncollectib...

Q: The table below contains selected financial information included in the 2016 financial

The table below contains selected financial information included in the 2016 financial statements of Tyson Foods Inc. and Pilgrim’s Pride Corp. Required: 1. Calculate the 2019 recei...

Q: Target Corporation prepares its financial statements according to U.S.

Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 1, 2020, are available in Connect. This mate...

Q: Air France–KLM (AF), a Franco-Dutch company

Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year end...

Q: The table below contains selected financial information included in the financial statements

The table below contains selected financial information included in the financial statements of Kohl’s Corporation and Dillards, Inc., two companies in the department store industry....

Q: An accounting intern for a local CPA firm was reviewing the financial

An accounting intern for a local CPA firm was reviewing the financial statements of a client in the electronics industry. The intern noticed that the client used the FIFO method of determining ending...

Q: Target Corporation prepares its financial statements according to U.S.

Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 1, 2020, are available in Connect. This mate...