Questions and Answers of Horngrens Accounting 11th Canadian

Lui Dental began operations in January 2023 selling dental appliances to dentists. The following transactions occurred during the first 6 months of operations:Required1. Complete the following aged
Surf and Sun had the following balances at December 31, 2023, before the year-end adjustments:The aging of accounts receivable yields the following data:1. Journalize Surf and Sun’s entry to record
Eastern Supply uses the allowance method in accounting for uncollectible accounts with the estimate based on the aging-of-accounts-receivable method. The company had the following account balances on
Record the following selected transactions in the general journal of WM Gaming Supplies and show all your answers to two decimal places. Explanations are not required. 2022 Nov. 21 30 Dec.
At December 31, 2023, the Accounts Receivable balance of Stenner’s Electronics is $300,000. The Allowance for Doubtful Accounts has an $8,900 credit balance. Accountants for Stenner’s Electronics
Harrison Real Estate reported the following information for 2023:1. If uncollectible accounts are determined by the percent-of-sales method to be 3 percent of net credit sales, what is the bad debt
Unaday Loans issued the following notes during 2023:Required1. Determine the due date, interest revenue, and maturity value of each note. Round all interest amounts to two decimal places.2.
Angel Landscaping Services started the year 2023 with an Accounts Receivable balance of $40,500 and an Allowance for Doubtful Accounts balance of $4,310. During the year, $4,290 of accounts
Assume that Brechin Farm Equipment completed the following selected transactions:Required Record the transactions in the general journal. Explanations are not required. Round all answers to two
Record the following selected transactions in the general journal of J&S Event Planners. Show all your answers to two decimal places. Explanations are not required. 2022 Dec.
On March 31, 2023, Summitt Manufacturing had a $290,000 debit balance in Accounts Receivable. During April, the business had sales revenue of $1,150,000, which included $990,000 in credit sales.
What is the name of the contra account for receivables that may not be collected?
The comparative financial statements of Bita Company for 2023, 2022, and 2021 included the following selected data:Required1. Compute these ratios for 2023 and 2022, assuming that all sales are on
The Accounts Receivable balance for Lake Company at December 31, 2022, was $20,000. During 2023, Lake earned revenue of $454,000 on account and collected $325,000 on account. Lake wrote off $5,600
A company received the following notes during 2023. The notes were discounted on the dates and at the rates indicated.Required Identify each note by letter, compute interest using a 365-day year for
On June 30, 2023, Alberta Wireless had a $100,000 debit balance in Accounts Receivable. During July, the company had sales revenue of $150,000, which included $140,000 in credit sales. Other data for
Wellington Corp. summarized its accounts receivable activity in the following two T-accounts:RequiredAnalyze the information presented in the T-accounts, and identify the amount related to each of
Gas stations do a large volume of business by customer credit cards and debit cards. An Esso station had these transactions on July 17:Suppose MasterCard charges merchants 3 percent, non-bank credit
Franklin Ltd., a gift store, reported the following amounts in its 2023 financial statements. The 2022 figures are given for comparison.Required1. Determine whether Franklin Ltd.’s acid-test ratio
Tropical North Company, which has a December 31 year end and uses a periodic inventory system, completed the following transactions during 2022 and 2023:RequiredPrepare the necessary journal entries
Vision Electronics, which makes DVD players, reported the following items at February 28, 2023 (amounts in thousands, with last year’s—2022—amounts also given as needed):Compute for 2023 Vision
For each of the following notes receivable, compute the amount of interest revenue earned during 2023: a. Note #1 b. Note #2 c. Note #3 Interest Interest Period Principal Rate $10,000
Silver Clothiers reported the following selected items at April 30, 2023 (previous year’s—2022—amounts also given as needed):Compute Silver’s (a) Acid-test ratio, (b) Accounts receivable
Surfwood Co. and Berry’s Bait Inc. are similar companies that operate within the same industry. The following information is available:Which company has the greater number of days in uncollected
Acme Cell Phones had a debit balance in Accounts Receivable of $100,000 on January 1, 2023. On that date, Acme sold $80,000 of merchandise to Brodie Trucking Company on account. Ignore the cost of
On September 30, 2022, Team Bank loaned $94,000 to Kendall Warner on a 1-year, 6 percent note. Team’s fiscal year ends on December 31.Required1. Journalize all entries for Team Bank related to the
For each of the following notes receivable, compute the amount of interest revenue earned during 2023. Use a 365-day year or base your calculations on the number of months, depending on how the
Portage Planners accepted a $12,900 note from M. Bonicalzi in settlement of an old account receivable. The 4 percent note was dated October 1, 2022, and was due in 4 months.1. What is the journal
Why would a payee sell a note receivable before its maturity date?
The accounting firm of Chutter Danislav, CPAs, purchased land, paying $350,000 cash. In addition, the company paid property tax in arrears of $3,000, a legal fee of $1,500, and a $20,500 charge for
The board of directors of Chipman Developments is reviewing the 2023 annual report. A new board member, a dermatologist with little business experience, questions the company accountant about the
Define amortization and explain the concept of useful life of an asset.
Crispy Fried Chicken bought equipment on January 2, 2021, for $33,000. The equipment was expected to remain in service for 4 years. At the end of the equipment’s useful life, Crispy estimates that
Assume that On Call Limousines completed the following transactions:On Call Limousines’ amortization policy states that the company will take a full month’s amortization on purchases occurring up
On January 1, 2023, FlyFast Airways purchased a used Bombardier jet at a cost of $50,000,000. FlyFast expects the plane to remain useful for 5 years (6,000,000 miles) and to have a residual value of
My Porto Chicken bought equipment on January 2, 2021, for $33,000. The equipment was expected to remain in service for 4 years and to operate for 6,750 hours. At the end of the equipment’s useful
To what types of assets does amortization expense apply under ASPE?
On January 1, 2023, FlyFast Airways purchased a used Bombardier aircraft at a cost of $50,000,000. FlyFast expects the plane to remain useful for 5 years (6,000,000 miles) and to have a residual
Gigi’s Baked Chicken bought equipment on January 2, 2021, for $33,000. The equipment was expected to remain in service for 4 years. At the end of the equipment’s useful life, Gigi’s estimates
UpSky Airways purchased a small jet on January 1 at a cost of $40,000,000. UpSky expects the plane to remain useful for 6 years and to have a residual value of $4,000,000. UpSky is comparing the CCA
To which types of assets does amortization expense apply under IFRS? Time Time Time $ of Annual Amortization $ of Annual Amortization $ of Annual Amortization
The financial statements of Mei’s Foods for the year ended December 31, 2022, reported the following details of acquisitions:Mei’s Foods paid $91,000 cash for the acquisitions. Assume that the
On March 31, 2023, Northern Mining purchased a dump truck at a cost of $4,000,000. Northern expects to use the truck for 9 years and expects it to have a residual value of $400,000. Compute
In 2022, Maxwell Inc. paid $625,000 for equipment that is expected to have a 5-year life. In this industry, the residual value is estimated to be 5 percent of the asset’s cost. Maxwell Inc. plans
Red Pine Printers purchased equipment on January 1, 2019, for $250,000. The estimated residual value is $25,000, and the estimated useful life is 15 years. Red Pine Printers uses the straight-line
Which amortization method does not consider estimated residual value in computing amortization during the early years of the asset’s life?
On January 13, 2022, Bill’s Birdfeeders purchased store fixtures for $65,000 cash, expecting the fixtures to remain in service for 10 years. Bill’s Birdfeeders has amortized the fixtures on a DDB
What is capital cost allowance (CCA)?
Alpha Communication purchased equipment on January 1, 2023, for $27,500. Suppose Alpha Communication sold the equipment for $20,000 on December 31, 2025. Accumulated amortization as of December 31,
In 2021, Global Millwrights purchased a milling machine for $4,000, debiting Milling Equipment. During 2021 and 2022, Global recorded total amortization of $2,000 on the machine. In January 2023,
When a company sells property, plant, and equipment before the year’s end, what must it record before accounting for the sale?
Genji Toys acquired companies with assets with a market value of $55 million and liabilities of $30 million. Genji paid $27 million for these acquisitions during the year ended December 31,
What expense applies to natural resources? By which amortization method is this expense computed?
Why is the cost of patents and other intangible assets often expensed over a shorter period than the legal life of the asset?
Tanner Kerekes operates a law practice in Mississauga under the name Tanner Kerekes, Lawyer. The following business transactions took place during the month of May 2022:Required Identify the
Canyon Canoe Company is a company that rents canoes for use on local lakes and rivers. Amber Wilson graduated from university about 10 years ago. She worked for a large accounting firm and became a
Locate Aritzia’s February 28, 2021, Annual Report. Notice that all amounts are reported in thousands of Canadian dollars. Also, Aritzia has a fiscal year-end that changes from year to year. In
John Chang operates a plumbing business as a proprietorship (John Chang Plumbing). The following events took place during the month of June 2022:Required Identify the accounting assumption,
Len Thomas, the accountant for Edmonton Consulting, prepared the worksheet shown on the next page on a computer spreadsheet but has lost much of the data. The only particular item Thomas can recall
Mark Hanson, the accountant for Glenn Graphics, had prepared the worksheet shown on the next page on a computer spreadsheet but has lost much of the data. The only particular item the accountant can
What purpose is served by closing the accounts?
The accounts of International Travel at March 31, 2023, are listed in alphabetical order here:Required1. Prepare the company’s classified balance sheet in report format at March 31, 2023. Use a
The adjusted trial balance of NotE Design at December 31, 2023, the end of the company’s fiscal year, is shown below.Required1. Prepare NotE Design’s income statement and statement of owner’s
The accounts of Bolton Travel at December 31, 2023, are listed below in alphabetical order:Required1. Prepare the company’s classified balance sheet in report format at December 31, 2023. Use a
The adjusted trial balance of Coastal Creations at June 30, 2023, the end of the company’s fiscal year, appears below.Required1. Prepare the income statement and statement of owner’s equity for
Let’s look at recording the same supplies transactions two different ways. The business starts the year (January 1) with $1,800 of supplies on hand. On August 12, the business purchased $10,800 of
Why should the adjusting entries be journalized and posted before the closing entries are made?
Michael’s Esports Tutoring reported the following partial list of accounts in its June 30, 2023, financial records:Required1. Prepare the company’s closing entries. Include explanations.2.
This problem should be used in conjunction with P4–3B. If you did not complete that problem, you can use the data but will need to calculate the ending balance in the Capital account.Data from
The unadjusted trial balance of Dorset Roofing at July 31, 2023, appears below:Additional data at July 31, 2023:a. Amortization for the period to be recorded: equipment, $2,040; building, $4,210.b.
The worksheet of Best Jobs Employment Service follows but is incomplete. The following data at April 30, 2023, are given for Best Jobs Employment Service:a. Service revenue accrued, $700.b. Office
The new office assistant thought he would be helpful and created an alphabetical list of accounts for Mangachu Design at December 31, 2023.The following additional data at December 31, 2023, was
One year ago your friend Don Jenner founded Jenner Consulting Services. The business has prospered. Jenner, who remembers that you took an accounting course while in university, comes to you for
This case, based on Aritzia’s 2020 Annual Report, will familiarize you with some of the assets and liabilities of this company. Answer these questions, using the company’s balance
The unadjusted trial balance of Silber Insurance Agency at August 31, 2023, appears below:Adjustment data for month-end adjustments:a. Commission revenue received in advance that had not been earned
The unadjusted trial balance of Skydive Tours appears below:Additional information at September 30, 2023:a. The business had corporate sales that were not recorded yet in the amount of $840. It must
The adjusted trial balance of Erickson Real Estate Appraisal at June 30, 2023, follows:Required1. Journalize the closing entries.2. Open the T-accounts using the balances from the adjusted trial
The adjusted trial balance of Rocket Real Estate Appraisal at June 30, 2023, follows:Required1. Journalize the closing entries.2. Open the T-accounts using the balances from the adjusted trial
Accountants for Jones Street Transcription Services encountered the following situations while adjusting and closing the books at December 31. Consider each situation independently.a. The office
In what order are the financial statements prepared? Why?
Journalize the adjusting and closing entries for Skydive Tours’ information shown in E4–2. Include explanations.Data from E4–2The unadjusted trial balance of Skydive Tours appears
Based on the following adjusted trial balance, prepare a classified balance sheet for Warsaw Rentals on December 31, 2023. You will have to compute the owner’s capital account balance on December
The adjusted trial balance for Pria’s Music Lessons follows:Required1. Journalize the closing entries of Pria’s Music Lessons at December 31, 2023. Include explanations.2. How much net income or
Refer to the Cloud Break Consulting classified balance sheet presented in the Summary Problem.RequiredCompute Cloud Break Consulting’s current ratio and debt ratio at November 30, 2023. Round your
Indicate where each of the following accounts would be reported in the financial statements for the year ended December 31, 2022:1. __________ Prepaid Rent2. __________ Unearned Revenue3. __________
Why is the debt ratio calculated? Should this ratio result in a high or low value?
Wilson Distributors is a provider of motorcycle parts. The company recently reported the following:RequiredEvaluate Wilson Distributors’ operations during 2023 in comparison with 2022. Consider
The fictional balance sheet of MAC Company using IFRS is shown below. Review it and describe at least three differences in their presentation from what is shown in Exhibit 4–11. Ignore the fact
Crystal Clear Cleaning has decided that, in addition to providing cleaning services, it will sell cleaning products. Crystal Clear uses the perpetual inventory system. During December 2022, Crystal
Garwood Racing has these account balances at December 31, 2023:Compute Garwood Racing’s current ratio and debt ratio. Accounts Payable............. Accounts
Calculate the current ratio and the debt ratio for Tietz Consulting at December 31, 2023. Assets Current assets Cash Tietz Consulting Balance Sheet December 31, 2023 Accounts receivable Prepaid
On December 31, 2023, Rexall Industries recorded an adjusting entry for $10,000 of accrued interest revenue. On January 15, 2024, the company received interest payments in the amount of $22,000.
Why is the current ratio calculated? Should this ratio result in a high or low value?
Canadian explorer Ray Zahab is a record-breaking ultra marathoner and an extreme adventurer. Zahab ran 7,500 kilometres across the Sahara Desert in 2007 and recorded the Guinness World Record for the
The employees of Olford Furniture Company made an error when they performed the periodic inventory count at year end, October 31, 2023. Part of one warehouse was not counted and therefore was not
Gismondi Produce Company’s adjusted trial balance at December 31, 2023, is as follows.Required1. Journalize the closing entries of Gismondi Produce Company assuming that the perpetual inventory
Meaghan Mirkle owns the Unicorn Day Spa, which has prospered during its second year of operation. To help Mirkle decide whether to open another spa in the area, her bookkeeper has prepared the
As the proprietor of Willow Auto Service, you receive the invoice below from a supplier (GST has been ignored):RequiredJournalize the following three transactions. No explanations are required.
This problem uses both the statement of earnings (income statement) and the balance sheet of Aritzia’s February 28, 2021 financial statements.1. Journalize Aritzia’s closing entries for the year
Buono Adventures, which uses the perpetual inventory system, has the following account balances (in alphabetical order) on July 31, 2023:Additional data at July 31, 2023:a. A physical count of items

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