Last Act Test While on duty as a municipal police officer, you observe a female and two males sitting in a vehicle parked across the street from a bank. When you get closer to the vehicle, you observe the female holding a handgun. As you are in the process of arresting the female for possession of a firearm, you observe a bank employee drive up […]

Moleski Limited, a private company following ASPE, includes one coupon in each box of soap powder that it produces, and 10 coupons are redeemable for a premium (a kitchen utensil). In 2020, Moleski purchased 8,800 premiums at $0.90 each and sold 120,000 boxes of soap powder at $3.30 per box. In total, 44,000 coupons were presented for redemption in 2020. It is estimated that 60% […]

On January 1, 2020, Logan Limited had shares outstanding as follows: To acquire the net assets of three smaller companies, the company authorized the issuance of an additional 330,000 common shares. The acquisitions were as follows: On May 14, 2020, Logan realized a $97,000 gain (before tax) on a discontinued operation from a business segment that had originally been purchased in 2000. On December 31, […]

Information from the statement of financial position and statement of income is given below for North Road Inc., a company following IFRS, for the year ended December 31. North Road has adopted the policy of classifying interest paid as operating activities and dividends paid as financing activities. Additional information: 1. Investments in land were sold at a gain during 2020. 2. Equipment costing $56,000 was […]

St. Thomas Auto Repairs is preparing the financial statements for the year ended November 30, 2020. As the accountant, you are looking over the information regarding short-term liabilities, and determining the amounts that should be reported on the balance sheet. St. Thomas Auto Repairs reports under ASPE. The following information regarding new corporate initiatives has been brought to your attention. 1. St. Thomas printed a […]

Laurin Limited had 42,000 common shares outstanding on January 1, 2020. On March 1, 2020, Laurin issued 20,000 shares in exchange for equipment. On July 1, Laurin repurchased and cancelled 10,000 shares. On October 1, 2020, Laurin declared and issued a 10% stock dividend. Calculate the weighted average number of shares outstanding for Laurin for the year ended December 31, 2020. Round to the nearest […]

On January 1, 2020, Offshore Corporation erected a drilling platform at a cost of $5,460,000. Offshore is legally required to dismantle and remove the platform at the end of its six-year useful life, at an estimated cost of $950,000. Offshore estimates that 70% of the cost of dismantling and removing the platform is caused by acquiring the asset itself, and that the remaining 30% of […]

Use the information for Sorpon Corporation in E18.12. Assume that the company reports accounting income of $180,000 in each of 2021 and 2022, and that there are no reversing differences other than the one identified in E18.12. In addition, assume now that Sorpon Corporation was informed on December 31, 2021, that the enacted rate for 2022 and subsequent years is 25%. Instructions a. Calculate the […]

Potash Corporation of Saskatchewan Inc., Loblaw Companies Limited, and Air Canada are all Canadian companies with defined benefit plans as at December 31, 2017. Visit www.sedar.com to access financial statements for their 2017 fiscal years. (Note: Potash Corporation merged with Agrium Inc. to form Nutrien Inc. on January 1, 2018.) Instructions Analyze the notes to the financial statements of each of the three companies and […]

On January 1, 2020, Schmitt Inc.'s general ledger had these liability accounts: In addition, Schmitt had a balance in HST Receivable of $4,260 at January 1, 2020. Schmitt uses a periodic inventory system, operates in the Province of Ontario where HST is 13%, and follows ASPE. Schmitt's required premium for EI is 1.4 times the employee premium; for CPP, it is 1.0 times the employee […]