Questions and Answers of Horngrens Accounting 11th Canadian

Johnny’s Hamburgers issued 8%, 10-year bonds payable at 85 on December 31, 2018. At December 31, 2020, Johnny reported the bonds payable amortized on the straightline basis as follows:Johnny pays
Danny’s Hamburgers issued 6 percent, 10-year bonds payable at 90 on December 31, 2018. At December 31, 2020, Danny reported the bonds payable amortized on the straight-line basis as
Cavell Products Inc., a manufacturer of electronic devices, borrowed heavily between the years 2013 and 2017 to exploit the advantage of financing operations with debt. At first, Cavell Products was
2017 Jun. 10 Steven Hodgson and Sarah Asham have agreed to pool their assets and form a partnership to be called H&A Distributors. They agree to share all profits equally and make the
2017 Jun. 10 Adam Buckner and Amber Kwan have agreed to pool their assets and form a partnership to be called B&K Consulting. They agree to share all profits equally and make the following
Vince Sharma and Klaus Warsteiner formed a partnership on January 1, 2020. The partners agreed to invest equal amounts of capital. Sharma invested his proprietorship’s assets and liabilities (all
On January 1, 2020, Svitlana Yaeger and Val Havlac formed a partnership. The partners agreed to invest equal amounts of capital. Havlac invested her proprietorship’s assets and liabilities (all
Nancy Wesla and Jordon Dugger have been in a partnership for five years. The principal business of the partnership is systems design for financial institutions. Gross revenues have increased from
Lori Barclay invested $30,000 and Vanesa Resultan invested $15,000 in a public relations firm that has operated for 10 years. Neither partner has made an additional investment. They have shared
Lisogar, Philip, & Walters (LPW) is a regional accounting firm with four offices. Summary data from the partnership’s annual report follow:Required1. What percentages of total revenues did LPW
Ron Montgomery, who is a partner in M&N Associates, commits the firm to a contract for a job within the scope of its regular business operations. What term describes Montgomery’s ability to
Tarlier and Won are partners. Using the following information, prepare a statement of partner’s equity on December 31, 2020, for the T&W Partnership: Capital Сapital Net Income Partner Jan. 1,
Sheila Sasso, Karen Schwimmer, and Jim Perry have formed a partnership. Sasso invested $60,000; Schwimmer, $120,000; and Perry, $180,000. Sasso will manage the store, Schwimmer will work in the store
Sav Berlo, Silvio Felini, and Louis Valente have formed a partnership. Berlo invested $30,000, Felini $40,000, and Valente $50,000. Berlo will manage the store, Felini will work in the store half
Simone Perrier, Mary Salter, and Sean Patten have been partners in a systems design business for the past eight years. Perrier and Patten work full time in the business; Salter has a public
If a partnership cannot pay a debt, who must make payment? What term describes this obligation of the partners?
SAC Company is a partnership owned by K. Santiago, R. Astorga, and J. Camino, who share profits and losses in the ratio of 1:3:4. The adjusted trial balance of the partnership (in condensed form) at
SY&I is a partnership owned by T. Shitang, D. Yamamoto, and J. Ishikawa, who share profits and losses in the ratio of 2:3:5. The adjusted trial balance of the partnership (in condensed form) at
On June 30, 2019, Rick Reeves, Jason Bateman, and Oliver Morali started a partnership called RJO Enterprises. Prepare an opening balance sheet showing their investments:R. Reeves - - - - - - - - -
On December 31, 2019, Demetrius and Garnett agree to combine their sole proprietorships into a partnership. Their balance sheets on December 31 are shown as follows:Required1. Journalize the
Toronto Skytop Resort is a partnership, and its owners are considering admitting Bharat Ratta as a new partner. On July 31, 2020, the Capital accounts of the three existing partners and their shares
Pineridge Consulting Associates is a partnership, and its owners are considering admitting Helen Fluery as a new partner. On March 31, 2020, the Capital accounts of the three existing partners and
On January 1, 2019, Chris Hunts and Carol Lo formed the Chris and Carol Partnership by investing the following assets and liabilities in the business:An independent appraiser was hired to provide the
Trail Equipment is a partnership owned by three individuals. The partners share profits and losses in the ratio of 30 percent to Karen Tenne, 40 percent to Frank Durn, and 30 percent to Erin Hana. At
Vector Financial Planning is a partnership owned by three individuals. The partners share profits and losses in the ratio of 20 percent to Katherine Depatie, 40 percent to Sam Seamus, and 40 percent
The partnership of Je-hong and Barton had these balances at September 30, 2020:Je-hong gets 60 percent of profits and losses, and Barton gets 40 percent. Prepare the partnership’s income statement
The partnership of Du, Chong, and Smith has experienced operating losses for three consecutive years. The partners, who have shared profits and losses in the ratio of Jia Du, 10 percent, Denis Chong,
Chris Loranger and Mei Ling want to form a partnership to open a restaurant. They are considering bringing in a third partner who does not want any day to-day responsibility for managing the
The partnership of Telliher, Bachra, and Lang has experienced operating losses for three consecutive years. The partners, who have shared profits and losses in the ratio of Thea Telliher, 60 percent,
The partnership of Pavelski, Ovechin, and Oh has experienced operating losses for three consecutive years. The partners, who have shared profits and losses in the ratio of Steven Pavelski, 60
The partnership of Danolo and Goldman reports the following information:• Ken Danolo withdrew cash of $148,000 for personal use.• Jim Goldman withdrew cash of $120,000 during the year.• Net
What determines the amount of the credit to a partner’s Capital account when the partner contributes assets other than cash to the business?
Suppose Sean is withdrawing from the partnership of Sean, Mohid, and Beth. The partners share profits and losses in a 1:2:3 ratio for Sean, Mohid, and Beth, respectively. After the revaluation of
The Simra Brothers Partnership had the following statement of partners’ equity for the years ended December 31, 2019, and 2020. This is similar to the statement of partners’ equity shown in
Jeff Malcolm purchases Sheila Wilson’s interest in the Wilson & Conners partnership. What right does Malcolm obtain from the purchase? What is required for Malcolm to become Paula Conners’s
Name two events that can cause the dissolution of a partnership.
After completing the liquidation schedule in S12–14, journalize the partnership’s (a) Sale of noncash assets for $80,000 (use a single account for Noncash Assets), (b) Payment of
What if instead of the result you calculated in S12–14, you notice that Benroudi has a final balance of negative $8,000. What are the options for dealing with this capital deficit?S12–14Suppose
Name the three steps in liquidating a partnership.
Green, White, and Cedar are partners in GWC Services, a consulting practice. The partnership agreement states any income or loss is to be distributed in the following order:1. Services contributed by
Amber Wilson, Jean Turner, and Oscar White decide to form a T-shirt design partnership. Wilson figures this T-shirt design business will help her other company, Canyon Canoe Company, with any T-shirt
On December 31, 2020, Jim Austin and Mike Mundy agree to combine their proprietorships as a partnership. Their balance sheets on December 31 are as follows:Required1. Prepare the partnership balance
The Indigo Books & Music Inc. fiscal 2017 financial statements appear in Appendix A at the end of this book and on MyLab Accounting. Answer the following questions about the company’s share
The partnership of Nuan Zhang and Jen Phuah needed additional capital to expand into new markets, so the business incorporated as E-Z Services Inc. The articles of incorporation under the Canada
Gingrich Solutions Ltd.’s articles of incorporation state that it is allowed to issue 90,000 $2.00 preferred shares and 150,000 common shares. In its first year, Gingrich Solutions Ltd. completed
You have just received $4,000 from an uncle and you have decided to invest the money in shares of Electronic Recycling Inc. (ERI), a company that is listed on the Toronto Stock Exchange. ERI has
The TELUS Communications Corp. 2016 financial statements appear on MyLab Accounting. Answer the following questions about the company’s share capital:1. What classes of shares has TELUS issued? How
Grimreality Corp. has two classes of shares: common and preferred. Journalize the corporation’s June 22 issuance of1. 3,000 common shares for $70.00 per share2. 1,500 preferred shares for a total
The co-op student working at Morneau Equipment Inc. prepared their adjusted trial balance in alphabetical order. All accounts have their normal balances.Required1. Prepare the appropriate closing
Riverbend Inc. was organized in 2019. At December 31, 2019, Riverbend Inc.’s balance sheet reported the following shareholders’ equity account information:Preferred shares, $4.00, 200,000 shares
Sloboda Corporation was established in 2019. At December 31, 2019, Sloboda Corporation’s balance sheet reported the following shareholders’ equity account information:Preferred shares, $0.20,
At December 31, 2020, Thaler Corporation reported the following on its comparative balance sheet, which included 2019 amounts for comparison:1. How much did Thaler Corporation’s total contributed
Tijiu Broadcasting Inc. has 15,000 $2.50 preferred shares and 75,000 common shares outstanding. Tijiu Broadcasting Inc. declared and paid the following dividends during a three-year period: 2018,
The following summaries for Ruby Distributors Ltd. and Gem Wholesalers Inc. provide the information needed to prepare the shareholders’ equity section of each company’s balance sheet. The two
Shareholders’ equity information is given for Kabaddi Corp. and Kerala Ltd. The two companies are independent.Kabaddi Corp. Kabaddi Corp. is authorized to issue 100,000 common shares. All the
Assured Corp. has recently incorporated. The company issued common shares to a lawyer who provided legal services worth $7,500 to help organize the corporation. It issued common shares to another
Shahidi Corporation engaged in the following share transactions in the first quarter of their fiscal year:Jan. 19 Issued 4,500 common shares for cash of $11.00 per share.Feb. 3 Sold 1,000 $1.50 Class
Toluca Enterprises Inc. reported the following information in its October 31, 2019, annual report:Shareholders’ EquityPreferred shares, $2.75, cumulative, 600,000 shares authorized,100,000 shares
Reckless Phones Ltd. included the following shareholders’ equity on its year-end balance sheet at December 31, 2020:Shareholders’ EquityPreferred shares, $0.25, cumulative, unlimited
Are preferred shares automatically nonvoting?
Record the journal entries on April 18 for each of the following cases:Case A—Issue shares and buy the assets in separate transactions: Kvissle Corp. issued 11,000 common shares for cash of
Rainy Day Corporation has 50,000 $0.50 preferred shares and 600,000 common shares issued and outstanding. During a three-year period, Rainy Day Corporation declared and paid cash dividends as
Which event increases the assets of the corporation: authorization of shares or issuance of shares? Explain.
Indicate whether each of the following supports the use of long-term debt to raise capital or the issuance of common shares:a. Annual payment is optional.b. Money must be repaid.c. Issuance means
The balance sheet of OWL Corporation reported the following:Shareholders’ EquityPreferred shares, redeemable, nonvoting, cumulative, authorized16,000 shares, liquidation value $350,000
On December 10, HoHo Limited declared the annual cash dividend on its 5,000 $3.00 preferred shares and a $0.60 per share cash dividend on its 50,000 common shares.HoHo Limited then paid the dividends
Skeet Corporation has the following selected account balances at June 30, 2020. Pre- Shareholders’ equity section pare the shareholders’ equity section of the company’s balance sheet. Common
At January 1, 2018, Cricket Corp.’s balance sheet reported the following shareholders’ equity information:Shareholders’ EquityContributed capitalPreferred shares, $1.25, cumulative (2 years in
At January 1, 2018, Bohemia Nursery Ltd.’s balance sheet reported the following shareholders’ equity:Shareholders’ EquityContributed capitalPreferred shares, $0.75, cumulative (3 years in
Midnight Distribution Corporation’s balance sheet reported the following information at December 31, 2019:Preferred shares, $3, cumulative, 11,000shares issued, liquidation value $55 per share
The following elements of shareholders’ equity are adapted from the balance sheet of Brzynski Marketing Ltd.:Shareholders’ EquityPreferred shares, $0.10, cumulative, 100,000 sharesauthorized,
CS Rentals Ltd.’s accounting records include the following items, listed in no particular order, at December 31, 2020:Income tax of 32 percent applies to all items. Prepare CS Rentals Ltd.’s
Are there any cases when a company does not cancel its repurchased shares? If so, what are they?
The ledger of Paint Supplies Inc. contains the following information for operations for the year ended September 30, 2020:Sales
Use the TELUS Corporation 2016 financial statements that appear on MyLab Accounting to answer the following questions:1. Which income statement format—single-step or multi-step—does TELUS’s
Sintra Flights Inc. shows the following financial information at August 31, 2020:General expenses............................................................................................ $
The articles of incorporation for Plum Corp. authorize the company to issue 100,000 $5 preferred shares and 500,000 common shares. During its first fiscal year of operations, Plum Corp. completed the
The following accounts and related balances of Etse Manufacturing Inc. at December 31, 2020 are arranged in no particular order:Required1. Prepare the company’s classified balance sheet in the
The accounts and related balances of EOC Corp. at June 30, 2020 are arranged in no particular order:Required1. Prepare the company’s classified balance sheet in report format at June 30, 2020.2.
Tahini Inc.’s 2019 financial statements reported the following items—with 2018 figures given for comparison:Assuming there are three years’ dividends in arrears (including 2019), determine the
Tahini Inc.’s 2019 financial statements reported the following items with 2018 figures given for comparison:Compute Tahini Inc.’s return on assets for 2019. Round the answer to 2 decimal places.
You have been asked to consider investing in ASAP Printing Services Inc.Additional information:Total assets at January 1, 2019, were $4,050,000.Net income for 2019 was $420,000.No new shares were
What type of account is Organization Costs? Briefly describe how to account for organization costs under ASPE.
How does issuance of 1,500 common shares for land and a building, together worth $125,000, affect contributed capital?
Tapin Inc. has 2,500 shares of its $1.75 preferred shares outstanding. Dividends for 2018 and 2019 are in arrears. Assume that Tapin Inc. declares total dividends of $35,000 at the end of 2020. Show
The balance sheet of Pujari Sports Corp. reported the following:Cumulative preferred shares, 300 shares issued and outstanding,liquidation value $15,000
Woldenga Consulting Ltd. reported the figures shown below for 2020 and 2019:Required1. Compute the return on total assets (ROA) and the return on common shareholders’ equity (ROE) for 2020. Round
The following is an alphabetical list of accounts of Outlet Services Inc. as at January 31, 2019. The balances are prior to the closing journal entries. All accounts have normal balances.Accrued
List the following accounts in the order in which they would appear on the balance sheet: Common Shares, Preferred Shares, Retained Earnings, Dividends Payable. Also, give each account’s balance
Sydney Incorporated has 75,000 shares of $2 cumulative preferred shares outstanding as well as 110,000 common shares. There are no dividends in arrears on the preferred shares. The following
Answer these questions about Fresh Start Corp.’s dividends:1. How much in dividends must Fresh Start declare each year before the common shareholders receive cash dividends for the year?2. Suppose
Myrna Inc.’s 2020 financial statements reported the following items—with 2019 figures given for comparison: 2020 2019 Total assets $41,000 $40,800 Total liabilities $17,400 $18,000 Total
How are cumulative preferred dividends in arrears reported in the financial statements? When do dividends become a liability of the corporation?
Use the Indigo Books & Music Inc. financial statements that appear in Appendix A at the end of this book and on MyLab Accounting to answer the following questions:1. Does Indigo use a single-step
Amber Wilson, owner of Canyon Canoe Company, decides to start a new company that will be operated as a corporation, Outdoor Equipment Incorporated (OEI). This company will sell outdoor clothing and
Identify the two main sections of shareholders’ equity and explain how they differ.
The ________ measures a company’s success in using its assets to earn income for the stakeholders who are financing the business.
Shredders Wintersports Inc. reported these comparative shareholders’ equity data:During 2020, Shredders Wintersports Inc. completed these transactions and events:a. Net income, $1,430,000.b. Cash
The shareholders’ equity for Queen’s Windows Inc. on June 30, 2020 (end of the company’s fiscal year), follows:Common shares, 800,000 shares authorized, 80,000 shares issuedand outstanding
In 2022, Amber Wilson, owner of Canyon Canoe Company, started a new company that will be operated as a corporation, Outdoor Equipment Incorporated (OEI). This company sells outdoor clothing and

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