Exam 3: The Accounting Information System and Measurement Issues

Mark-Wall Corp.'s trademark was licensed to Rodgers Inc.for royalties of 12% of sales of the trademarked items.Royalties are payable semi-annually on March 15 for sales in July through December of the previous year, and on September 15 for sales in January through June of the same year.Mark-Wall received the following royalties from Rodgers: Rodgers estimates that sales of the trademarked items would total $67,000 for July through December 2018.On their statement of comprehensive income for calendar 2018, Mark-Wall's royalty revenue should be

On June 1, 2017, Carr Corp.loaned Farr Corp.$600,000 on a 5% note, payable in five annual instalments of $120,000 (plus interest), beginning January 2, 2018.Interest on the note is payable on the first day of each month beginning July 1, 2017.Farr made timely payments through November 1, 2017.On January 2, 2018, Carr received payment of the first principal instalment plus all interest due.At December 31, 2017, Carr's interest receivable on this loan is

White Resources determines that it has NOT yet recorded the 2017 accrual for Interest Revenue to be received in 2018.Assuming the amount to be recorded for 2017 is $2,000, the required adjustment at December 31, 2017 is

Use the following information for questions. -The insurance expense on the 2017 statement of comprehensive income was

Which type of account is always debited during the closing process?

In order to measure fair value under IFRS13, an entity must determine

On September 1, 2017 Culver Corp.issued a 9% note payable to National Bank for $750,000, payable in three equal annual principal payments of $250,000, plus interest.On this date, the bank's prime rate was 8%.The first payment for interest and principal was made on September 1, 2018.At December 31, 2018, Culver should record accrued interest payable of

Grant Limited pays all salaried employees on a biweekly basis.Overtime pay, however, is paid in the next biweekly period.Grant accrues salaries expense only at its December 31 year end.Data relating to salaries earned in December 2017 are as follows: Last payroll was paid on Dec 27, 2017, for the two-week period ended Dec 27, 2017. Overtime pay earned in the two-week period ended Dec 27, 2017 was $7,000. Remaining work days in 2017 were December 28, 29, 30, on which days there was no overtime. The regular biweekly salaries total $100,000.Assuming a five-day work week, Grant should record a liability at December 31, 2017 for accrued salaries of