Stranson Inc., a company using ASPE, completed the following transactions and events during the accounting year...

 

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Stranson Inc., a company using ASPE, completed the following transactions and events during the accounting year just ended, December 31, 2017. Interest rates reflect market rates unless indicated. 1. Merchandise was purchased in exchange for a $30,000 maturity value in one year (ig: March 31,2018), dated April 1, 2017, 7% discounted note. Also, you should update for interest effects at December 31, 2017. 2. Stranson has been sued by a customer for $500,000. The legal team believes that the company will be largely unsuccessful in its defence, and that the range of payout could be $200,000 to $500,000. It is believed that no amount within the range is more likely than any other. 3. On February 1, 2017, Oakland shipped cargo in one of its owned containers and received a security deposit for the container of $2,000 which Stranson could keep if the container was not returned. The container was never returned. Stranson records its containers as part of property plant and equipment, and had a net book value on the container of$1,600. 4. Payroll records showed the following: Gross wages Fed/Prov Income tax S120,000 EI CPP/QPP Union dues $32,000 $6,100 $5,500. $2,500 The employer has to match the CPP/QPP amount deducted above, and remit El in the amount of 1.4 times the amount deducted above. All remittances were made during 2017. Required: A) Prepare the journal entries for each of the transactions and events as required. B) For part 2) how would your response change if Stranson used IFRS? Provide support. Stranson Inc., a company using ASPE, completed the following transactions and events during the accounting year just ended, December 31, 2017. Interest rates reflect market rates unless indicated. 1. Merchandise was purchased in exchange for a $30,000 maturity value in one year (ig: March 31,2018), dated April 1, 2017, 7% discounted note. Also, you should update for interest effects at December 31, 2017. 2. Stranson has been sued by a customer for $500,000. The legal team believes that the company will be largely unsuccessful in its defence, and that the range of payout could be $200,000 to $500,000. It is believed that no amount within the range is more likely than any other. 3. On February 1, 2017, Oakland shipped cargo in one of its owned containers and received a security deposit for the container of $2,000 which Stranson could keep if the container was not returned. The container was never returned. Stranson records its containers as part of property plant and equipment, and had a net book value on the container of$1,600. 4. Payroll records showed the following: Gross wages Fed/Prov Income tax S120,000 EI CPP/QPP Union dues $32,000 $6,100 $5,500. $2,500 The employer has to match the CPP/QPP amount deducted above, and remit El in the amount of 1.4 times the amount deducted above. All remittances were made during 2017. Required: A) Prepare the journal entries for each of the transactions and events as required. B) For part 2) how would your response change if Stranson used IFRS? Provide support.

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