Questions and Answers of Accounting Principles IFRS

At December 31, 2019, House Co. reported the following information on its balance sheet.Accounts receivable .................................................. $960,000Less: Allowance for doubtful
Godfreid Company has accounts receivable of $95,400 at March 31, 2020. Credit terms are 2/10, n/30. At March 31, 2020, there is a $2,100 credit balance in Allowance for Doubtful Accounts prior to
Gentry Wholesalers accepts from Benton Stores a $6,200, 4-month, 9% note dated May 31 in settlement of Benton’s overdue account.(a) What is the maturity date of the note?(b) What is the interest
Presented below are data on three promissory notes. Determine the missing amounts. Date of Maturity Annual Total Note Terms Date Principal Interest Rate Interest а. April 1 b. July 2 c. March 7 60
The bank portion of the bank reconciliation for Langer Company at November 30, 2020, was as follows.The adjusted cash balance per bank agreed with the cash balance per books at November 30.The
McBride Company has the following opening account balances in its general and subsidiary ledgers on January 1 and uses the periodic inventory system. All accounts have normal debit and credit
The post-closing trial balance for Horner Co. is shown below.The subsidiary ledgers contain the following information: (1) accounts receivable—B. Hannigan $2,500, I. Kirk $7,500, and T. Hodges
Presented below are the purchases and cash payments journals for Fornelli Co. for its first month of operations.In addition, the following transactions have not been journalized for July. The cost of
R. Santiago Co. uses special journals and a general journal. The following transactions occurred during May 2020.May 1 R. Santiago invested $40,000 cash in the business.2 Sold merchandise to Lawrie
Pennington Company has a balance in its Accounts Payable control account of $9,250 on January 1, 2020. The subsidiary ledger contains three accounts: Hale Company, balance $3,000; Janish Company,
Kieschnick Company has a balance in its Accounts Receivable control account of $10,000 on January 1, 2020. The subsidiary ledger contains three accounts: Bixler Company, balance $4,000; Cuddyer
On September 1, the balance of the Accounts Receivable control account in the general ledger of Montgomery Company was $10,960. The customers’ subsidiary ledger contained account balances as
Presented below is the subsidiary accounts receivable account of Jill Longley.InstructionsWrite a memo to Sara Fogelman, chief financial officer, that explains each transaction. Date Ref. Debit
In what journal would the following transactions be recorded? Assume that a two-column sales journal and a single-column purchases journal are used.a. Recording of depreciation expense for the
On December 1, 2020, Annalise Company had the account balances shown below.The following transactions occurred during December.Dec. 3 Purchased 4,000 units of inventory on account at a cost of $0.74
Dempsey Inc. is a retailer operating in British Columbia. Dempsey uses the perpetual inventory method. All sales returns from customers result in the goods being returned to inventory; the inventory
The management of Danica Co. asks your help in determining the comparative effects of the FIFO and LIFO inventory cost fl ow methods. For 2020, the accounting records provide the following
You are provided with the following information for Koetteritz Inc. for the month ended June 30, 2020. Koetteritz uses the periodic method for inventory.Instructionsa. Calculate(i) Ending
The management of Gresa Inc. is reevaluating the appropriateness of using its present inventory cost flow method, which is average-cost. The company requests your help in determining the results of
Houghton Limited is trying to determine the value of its ending inventory as of February 28, 2020, the company’s year-end. The following transactions occurred, and the accountant asked your help in
Shereen Company reported the following information for November and December 2020.Shereen’s ending inventory at December 31 was destroyed in a fi re.Instructionsa. Compute the gross profit rate for
Elliott’s Hardware reported cost of goods sold as follows.Elliott’s made two errors: (1) 2019 ending inventory was overstated $3,000, and (2) 2020 ending inventory was understated
Inventory data for Moath Company are presented in E6.7.Instructionsa. Compute the cost of the ending inventory and the cost of goods sold using the average-cost method.b. Will the results in (a) be
Moath Company reports the following for the month of June.Instructionsa. Compute the cost of the ending inventory and the cost of goods sold under (1) FIFO and (2) LIFO.b. Which costing method gives
Cody Company sells three different categories of tools (small, medium, and large). The cost and net realizable value of its inventory of tools are as follows.Determine the value of the company’s
Cody Company sells three different categories of tools (small, medium, and large). The cost and net realizable value of its inventory of tools are as follows.Determine the value of the company’s
The financial statements of Louis Vuitton are presented in Appendix F. The complete annual report, including the notes to its fi nancial statements, is available at the company’s
On December 1, 2020, Rodriguez Distributing Company had the following account balances.During December, the company completed the following summary transactions.Dec. 6 Paid $1,600 for salaries and
The trial balance of Gaolee Fashion Center contained the following accounts at November 30, the end of the company’s fiscal year.Adjustment data:1. Supplies on hand totaled $2,600.2. Depreciation
Yolanda Hagen, a former disc golf star, operates Yolanda’s Discorama. At the beginning of the current season on April 1, the ledger of Yolanda’s Discorama showed Cash $1,800, Inventory $2,500,
Big Box Store is located in midtown Madison. During the past several years, net income has been declining because of suburban shopping centers. At the end of the company’s fiscal year on November
From the information in BE5.4, prepare the journal entries to record these transactions on Opps Company’s books under a perpetual inventory system.BE5.4Prepare the journal entries to record the
Most companies have established home pages on the Internet, but each might offer different types of information.InstructionsExamine the home pages of any two companies and then answer the following
Most companies have established home pages on the Internet, but each might off er different types of information.InstructionsExamine the home pages of any two companies and then answer the following
Natalie had a very busy December. At the end of the month, after journalizing and posting the December transactions and adjusting entries, Natalie prepared the following adjusted trial
No financial decision-maker should ever rely solely on the financial information reported in the annual report to make decisions. It is important to keep abreast of financial news. This activity
Hank’s Hotel opened for business on May 1, 2020. Its trial balance before adjustment on May 31 is as follows.In addition to those accounts listed on the trial balance, the chart of accounts for
Hank’s Hotel opened for business on May 1, 2020. Its trial balance before adjustment on May 31 is as follows.In addition to those accounts listed on the trial balance, the chart of accounts for
Logan Krause started her own consulting firm, Krause Consulting, on May 1, 2020. The trial balance at May 31 is as follows.In addition to those accounts listed on the trial balance, the chart of
Partial adjusted trial balance data for Miller Company is presented in BE3.9. The balance in Owner’s Capital is the balance as of January 1. Prepare an owner’s equity statement for the year
The adjusted trial balance of Miller Company at December 31, 2020, includes the following accounts: Owner’s Capital $16,400, Owner’s Drawings $7,000, Service Revenue $39,000, Salaries and Wages
PepsiCo, Inc.’s financial statements are presented in Appendix B. Financial statements of The Coca-Cola Company are presented in Appendix C. The complete annual reports of PepsiCo and Coca-Cola,
PepsiCo, Inc.’s fi nancial statements are presented in Appendix B. Financial statements of The Coca-Cola Company are presented in Appendix C. The complete annual reports of PepsiCo and Coca-Cola,
Schultz Electronics manufactures two large-screen television models: the Royale which sells for €1,600, and a new model, the Majestic, which sells for €1,300. The production cost computed per
For each of the following cases, indicate(a) To what interest rate columns(b) To what number of periods you would refer in looking up the discount rate. (1) In Table 3 (present value of 1):(2) In
Frank and Maureen Fantazzi invested €8,000 in a savings account paying 5% annual interest when their daughter, Angela, was born. They also deposited €1,000 on each of her birthdays until she was
Refer back to E27.9 to address the following.InstructionsPrepare a memo to Pari Raman, your supervisor. Show your calculations from E27.9 (a) and (b). In one or two paragraphs, discuss important
Hart Labs provides mad cow disease testing for both regional and national governmental agricultural agencies. Because the company’s customers are governmental agencies, prices are strictly
Using the information in P26.5, compute the overhead controllable variance and the overhead volume variance.P26.5Hart Labs provides mad cow disease testing for both regional and national governmental
Hart Labs provides mad cow disease testing for both regional and national governmental agricultural agencies. Because the company’s customers are governmental agencies, prices are strictly
Sentinel Industries has manufactured prefabricated houses for over 20 years. The houses are constructed in sections to be assembled on customers’ lots. Sentinel expanded into the precut housing
The Dinkle and Frizell Dental Clinic provides both preventive and orthodontic dental services. The two owners, Reese Dinkle and Anita Frizell, operate the clinic as two separate investment centers:
Lucerne Dental Clinic is a medium-sized dental service specializing in family dental care. The clinic is currently preparing the master budget for the first 2 quarters of 2020. All that remains in
Rensing Ltd. estimates sales for the second quarter of 2020 will be as follows.Month ............ UnitsApril ................ 2,550May ................. 2,675June ................ 2,390The target
Popov OAO has 20,000 beginning finished goods units. Budgeted sales units are 160,000. If management desires 15,000 ending finished goods units, what are the required units of production?
Nakamura Designs is considering the purchase of a new machine. The invoice price of the machine is ¥14,000,000, freight charges are estimated to be ¥400,000, and installation costs are expected to
A company manufactures three products using the same production process. The costs incurred up to the split off point are ¥2,000,000. These costs are allocated to the products on the basis of their
The condensed income statement for Peri and Paul plc for 2020 is as follows.A cost behavior analysis indicates that 75% of the cost of goods sold are variable, 42% of the selling expenses are
Creative Ideas has decided to introduce a new product. The new product can be manufactured by either a capital intensive method or a labor-intensive method. The manufacturing method will not affect
Determine the missing amounts. Unit Selling Unit Variable Unit Contribution Contribution Price Costs Margin Margin Ratio NT$6,400 NT$3,000 1. NT$3,520 (a) (b) (d) 2. (c) (f) NT$930 3. NT$3,250 25%
Kang Ltd. manufactures CH-21 through two processes: mixing and packaging. In July, the following costs were incurred.Units completed at a cost of W21,000,000 in the Mixing Department are transferred
Tong Company has the following production data for selected months.Compute equivalent units of production for materials and conversion costs, assuming materials are entered at the beginning of the
At Ghose Company, overhead is assigned to production departments at the rate of $5 per machine hour. In July, machine hours were 3,000 in the Machining Department and 2,400 in the Assembly
In the course of routine checking of all journal entries prior to preparing year-end reports, Ying Wang discovered several strange entries. She recalled that the president’s son Jun had come in to
Zhao Decorating uses a job order cost system to collect the costs of its interior decorating business. Each client’s consultation is treated as a separate job. Overhead is applied to each job based
The following are the job cost related accounts for the law firm of Qing Associates and their manufacturing equivalents:Law Firm Accounts .................................................
A job cost sheet of Bhak Limited is given below. (Amounts are in won.)Instructionsa. Answer the following questions.1. What are the source documents for direct materials, direct labor, and
A job order cost sheet for Koskinen SE is shown below.Instructionsa. On the basis of the foregoing data, answer the following questions.1. What was the balance in Work in Process Inventory on January
Data pertaining to job cost sheets for Galli Group are given in BE20.3 and BE20.4. Prepare the job cost sheets for each of the three jobs. (Note: You may omit the column for Manufacturing
Rhie Helmets specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough orders to keep the factory production at 10,000 helmets
Incomplete manufacturing costs, expenses, and selling data for two different cases are as follows.Instructionsa. Indicate the missing amount for each letter.b. Prepare a condensed cost of goods
Marian Tombert, the bookkeeper for Winston Consulting, a political consulting firm, has recently completed a managerial accounting course at her local college. One of the topics covered in the course
Wu Cycles incurred the following costs while manufacturing its bicycles.Instructionsa. Identify each of the above costs as direct materials, direct labor, manufacturing overhead, or period costs.b.
The following information is available for Frey AG.Prepare the cost of goods manufactured schedule for the month of April. April 1 April 30 Raw materials inventory Work in process inventory CHF10,000
Presented below are Huang Group’s monthly manufacturing cost data related to its tablet computer product.a. Utilities for manufacturing equipment ................. HK$1,160,000b. Raw materials
Identify whether each of the following costs should be classified as product costs or period costs.a. ______ Manufacturing overhead.b. ______ Selling expenses.c. ______ Administrative
In what order should manufacturing inventories be listed in a statement of financial position?
a. “Managerial accounting is a field of accounting that provides economic information for all interested parties.” Do you agree? Explain.b. Joe Delong believes that managerial accounting serves
Your parents are considering investing in Apple common stock. They ask you, as an accounting expert, to make an analysis of the company for them. The financial statement of Apple are presented in
Nestlé’s financial statements are presented in Appendix B. Financial statements for Delfi Limited are presented in Appendix C.Instructionsa. Based on the information contained in the 2016
Your parents are considering investing in TSMC ordinary shares. They ask you, as an accounting expert, to make an analysis of the company for them. TSMC’s financial statements are presented in
Your parents are considering investing in TSMC ordinary shares. They ask you, as an accounting expert, to make an analysis of the company for them. TSMC’s financial statements are presented in
Financial information for Gallup SA is presented below.InstructionsPrepare a schedule showing a horizontal analysis for 2020 using 2019 as the base year. December 31, 2020 December 31, 2019 Plant
a. If Nimoy SA had net income of €350,000 in 2019 and it experienced a 22.4% increase in net income for 2020, what is its net income for 2020?b. If five cents of every euro of Nimoy revenue is net
Bart Sampson, the owner-president of Computer Services International, is unfamiliar with the statement of cash flows that you, as his accountant, prepared. He asks for further
Purpose: Learn about the U.S. Securities and Exchange Commission (SEC).InstructionsGo to the U.S. SEC website and then choose About to answer the following questions.a. How many enforcement actions
Refer to the financial statements of TSMC presented in Appendix A to answer the following questions. The complete annual report, including notes to the financial statements, is available at the
Data for Rattigan plc are presented in P17.5.InstructionsPrepare the operating activities section of the statement of cash fl ows using the direct method.P17.5Rattigan plc’s income statement
You are provided with the following transactions that took place during a recent fiscal year.InstructionsComplete the table indicating whether each item(1) Affects operating (O) activities, investing
Data for Toby Zed NV are presented in P17.3.InstructionsPrepare the operating activities section of the statement of cash fl ows using the direct method.P17.3The income statement of Toby Zed NV is
The income statement of Toby Zed NV is presented here.Additional information:1. Accounts receivable increased €200,000 during the year, and inventory decreased €500,000.2. Prepaid expenses
The following T-account is a summary of the Cash account of Wiegman Ltd.What amount of net cash (in £) provided (used) by financing activities should be reported in the statement of cash flows? Cash
The following data, presented in alphabetical order, are taken from the records of Radar Industries Ltd.Accounts payable
What purposes are served by reporting Unrealized Gain or Loss—Equity in the equity section rather than including it in income?
Using the data in Question 13, how would Tina report the data if the investment were long-term and the securities were classified as non-trading?Question 13Tina Eddings is the controller of Mendez
Pueblo Company issued €500,000 of 5-year, 8% bonds at 97 on January 1, 2020. The bonds pay interest annually. Instructionsa. 1. Prepare the journal entry to record the issuance of the bonds.2.
Mattsen Orchard issues a R$700,000, 6%, 15-year mortgage note to obtain needed financing for a new lab. The terms call for annual payments of R$72,074 each. Prepare the entries to record the mortgage
Mattsen Orchard issues a R$700,000, 6%, 15-year mortgage note to obtain needed fi nancing for a new lab. The terms call for annual payments of R$72,074 each. Prepare the entries to record the
The financial statements of TSMC are presented in Appendix A. The complete annual report, including the notes to the fi nancial statements, is available at the company’s website.InstructionsRefer
Why must preference share dividends be subtracted from net income in computing earnings per share?

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