Exam 2: Intermediate Accounting Volume 2

On January 1, 2014, Alvin Corp.sold property to Marvin Ltd., for which Alvin had originally paid $570,000.There was no established exchange price for this property.Marvin gave Alvin a $900,000, zero-interest-bearing note, payable in three equal annual instalments of $300,000, with the first payment due December 31, 2014.The note also has no ready market.The market rate of interest for a note of this type is 10%.The present value of a $900,000 note payable in three equal annual instalments of $300,000 at 10% is $746,056.To the nearest dollar, and using the effective interest method, how much interest revenue should Alvin recognize in 2014?

When the debtor sets aside money in a trust such that the investment and any return will be sufficient to pay the principal and the interest to the creditor, but the creditor does NOT release the company from the primary obligation to settle the debt, this type of arrangement is known as

Eye Corp.owned 20,000 shares of Lash Corp., which had been purchased in 2010 for $300,000.On December 15, 2014, Eye declared a property dividend of all of its Lash Corp. shares.The property dividend was distributed on January 15, 2015.On the declaration date, the fair value of Eye's investment in Lash was $400,000.The entry to record the declaration of the dividend would include a debit to Retained Earnings of

Use the following information for questions. The following data are provided for Croatia Corp.'s last two fiscal years: Shareholders' Equity 15- 27 Additional information: On May 1, 2015, 6,000 common shares were issued.Although dividends had been declared regularly up to December 31, 2014, preferred dividends were NOT declared during 2015.The market price of the common shares was $100 at December 31, 2015. -The book value per common share at December 31, 2015 is

What are the current International Financial Reporting Standards regarding customer loyalty programs (such as frequent flyer points)?

On December 1, 2014, Dee Ltd.agreed to sell 40,000 of their no par common shares on a subscription basis.On that day, 25% of the subscription price was collected as a down payment, with the remaining 75% due in 2015.On the December 31, 2014 statement of financial position, the shareholders' equity section would report

Entries for bonds payable Prepare the necessary journal entries to record the following transactions relating to the long- term issuance of bonds by Glendale Corp.Show calculations and round to the nearest dollar. March 1 Issued $200,000 (face value)8% bonds for $218,040, including accrued interest.Interest is payable semi-annually on December 1 and June 1 with the bonds maturing 10 years from the previous December 1.The bonds are callable at 102. June 1 Paid semi-annual interest on the bonds.Use straight-line amortization for any premium or discount. December 1 Paid semi-annual interest on the bonds, and then purchased $100,000 face value bonds at the Long-Term Financial Liabilities 14- 37 call price in accordance with the provisions of the bond indenture.

Which of the following statements is INCORRECT concerning warranties?

Use the following information to answer questions . -The total amount in the Common Shares account at December 31, 2014 is

Restrictions included in restricted covenants do NOT generally include

Aluminum Ltd.has made a total of $23,250 in instalments for corporate income tax for calendar 2014, all of which have been debited to Current Income Tax Expense.At year end, Dec 31, 2014, the accountant has calculated that the corporation's actual tax liability is only $21,500.What is the correct adjusting entry to reflect this fact?

The fair value of a property dividend should NOT be determined by

Warsaw Ltd.has 100,000 no par value common shares authorized, issued, and outstanding. All 100,000 shares were issued at $8 per share.Retained earnings are $120,000.If 10,000 common shares were reacquired at $6 and cancelled,

The total payroll of Carbon Company for the month of October was $240,000, all subject to CPP deductions of 4.95% and EI deductions of 1.83%.As well, $60,000 in federal income taxes and $6,000 of union dues were withheld.The employer matches the employee deductions and contributes 1.4 times the employee EI deductions.What amount should Carbon record as employer payroll tax expense for October?

Use the following information for questions. Instanbul Corp.has outstanding 20,000 no par value, $0.80, preferred shares and 100,000 no par value common shares.Dividends have been paid every year except last year and the current year.The carrying value of the preferred shares is $200,000 and of the common shares is $300,000. -If the preferred shares are cumulative and non-participating and $100,000 is distributed as a dividend, the common shareholders will receive

Types of subsequent events Identify the difference between the two types of subsequent events.

Total shareholders' equity represents

The residual interest in a corporation belongs to the

A possible result of the reacquisition and cancellation of shares by a corporation is that this may

Deferred tax asset a.Describe a deferred tax asset. b.Under IFRS, when should a deferred tax asset be recognized?