In 2014, I & T Corporation reported net income of $1.6 million, and declared and paid preferred share dividends of $400,000. During 2014, I & T had a weighted average of 120,000 common shares outstanding. Calculate I & T's 2014 earnings per share.
> The Canadian Securities Administrators (CSA), an umbrella group of Canadian provincial securities commissions, accumulates and publishes all documents that public companies are required to file under securities law. This database may be accessed from the
> Under IFRS, items of income and expenses are not allowed to be presented as "extraordinary" in the income statement or notes. Under U.S. GAAP, this is allowed. Instructions Explain what reasons the IASB might have had to eliminate the separate reporting
> Other comprehensive income is a category of comprehensive income that is made up of specific gains and losses that are reported separately after net earnings under IFRS. Under ASPE, there is no such concept as comprehensive income or other comprehensive
> Anikan Limited has approved a formal plan to sell its head office tower to an outside party. A detailed plan has been approved by the board of directors. The building is on the books at $50 million (net book value). The estimated selling price is S49 mil
> The ethical accountant is the manager and accountant for a small company that is privately owned by three individuals. He has always given the owners cash-based financial statements. The owners are not accountants and do not understand how financial stat
> On January 1, 2014, Rocket Corp. had cash and common shares of$60,000. At that date, the company had no other asset, liability, or shareholders' equity balances. On January 2, 2014, Rocket paid 540,000 cash for equity securities that it designated as fai
> Information about a corporation's operations is presented in a statement of earnings or a statement of comprehensive income. Income statements are prepared on either a current operating performance basis or an all-inclusive basis. Users of these income s
> Lanestar Inc. reported income from continuing operations before tax of$1,790,000 during 2014. Additional transactions occurring in 2014 but not included in the $1,790,000 are as follows: 1. The corporation experienced an insured flood loss of $80,000 dur
> Information for 2014 follows for Rolling Thunder Corp. Rolling Thunder decided to discontinue its entire wholesale division (a major line of business) and to keep its manufacturing division. On September 15, it sold the wholesale division to Dylane Corp
> Delray Inc. follows IFRS and has the following amounts for the year ended December 31, 2014: gain on sale of FV-NI investments (before tax) $1,000; loss from operation of discontinued division (net of tax) $3,000; income from operations (before tax) 515,
> On November I, 2013, Campbell Corporation management decided to discontinue operation of its Rocketeer Division and approved a formal plan to dispose of the division. Campbell is a successful corporation with earnings of $150 million or more before tax f
> In recent years, Grace Inc. has reported steadily increasing income. The company reported income of $20,000 in 2011, $25,000 in 2012, and 530,000 in 2013. Several market analysts have recommended that investors buy Grace Inc. shares because they expect t
> Dr. John Gleason, M.D., maintains the accounting records of Bones Clinic on a cash basis. During 2014, Dr. Gleason collected 5146,000 in revenues and paid 555,470 in expenses. At January 1, 2014, and December 31, 2014, he had accounts receivable, unearne
> The trial balance of Eastwood Inc. and other related information for the year 2014 follows: Additional information: 1. The inventory has a net realizable value of $212,000. The FIFO method of inventory valuation is used. 2. The fair value- OCI investmen
> On January I, 2014, Caroline Lampron and Jenni Meno formed a computer sales and service enterprise in Montreal by investing $90,000 cash. The new company, Razorback Sales and Service, has the following transactions in January: l. Paid $6,000 in advance f
> The following is from a recent income statement for Baring Corp (a public company): It includes only five separate numbers, two subtotals, and the net earnings figure. Instructions (a) Indicate the deficiencies in the income statement. (b) What recommen
> The equity accounts of Feeling Alright Vitamin Limited as at January 1, 2014, were as follows: During 2014, the following transactions took place: Instructions Prepare a statement of changes in equity for the year ended December 31, 2014. The company fo
> Amos Corporation was incorporated and began business on January 1, 2014. It has been successful and now requires a bank loan for additional working capital to finance an expansion. The bank has requested an audited income statement for the year 2014 usin
> Faldo Corp. is a public company and has 100,000 common shares outstanding. In 2014, the company reported income from continuing operations before income tax of $2,710,000. Additional transactions not considered in the $2,710,000 are as follows: 1. In 201
> Joe Schreiner, controller for On Time Clock Company Inc., recently prepared the company's income statement and statement of changes in equity for 2014. Schreiner believes that the statements are a fair presentation of the company's financial progress dur
> Hamad Corporation began operations on January 1, 2011. Recently the corporation has had several unusual accounting problems related to the presentation of its income statement for financial reporting purposes. The company follows ASPE. You are the CA for
> Faz Corporation is a manufacturer of paints and specialty coatings. In March 2014, Beck Inc. filed a lawsuit against Faz Corporation for alleged patent infringement, claiming $1.l million in damages. Faz's lawyer disputed the claim, but in December 2014,
> A combined statement of income and retained earnings for DC 5 Ltd. for the year ended December 31, 2014, follows. (As a private company, DC 5 has elected to follow ASPE.) Also presented are three unrelated situations involving accounting changes and the
> Bruno Corp. has decided to expand its operations. The bookkeeper recently completed the following statement of financial position in order to obtain additional funds for expansion: Instructions (a) Prepare a revised statement of financial position using
> Videohound Video Company, a sole proprietorship, had the following information for 2014: Instructions Calculate the net income for 2014. Cash balance, January 1 Accounts receivable, January 1 Collections from customers during year Capital account ba
> The following are all changes in the account balances of Bravar Company Ltd. during the current year, except for Retained Earnings: Instructions Calculate the net income for the current year, assuming that there were no entries in the Retained Earnings
> On October 5, 2014, Diamond in the Rough Recruiting Group Inc.'s board of directors decided to dispose of the Blue Division. A formal plan was approved. Diamond derives approximately 7 5% of its income from its human resources management practice. The Bl
> Assume that PAC Inc. decided to sell SBT, a subsidiary, on September 30, 2014. There is a formal plan to dispose of the business component, and the sale qualifies for discontinued operations treatment. Pertinent data on the operations of the TV subsidiar
> Pike Corporation, a clothing retailer, had income from operations (before tax) of $375,000, and recorded the following before tax gains/ (losses) for the year ended December 31, 2014: Pike also had the following account balances as of January I, 2014: A
> Reach Out Card Company Limited reported the following for 2014: net sales revenue $1.2 million; cost of goods sold $750,000; selling and administrative expenses $320,000; gain on disposal of building $250,000; and unrealized gain-OCI (related to fair val
> Portmann Corp. maintains its financial records using the cash basis of accounting. As it would like to secure a long-term loan from its bank, the company asks you, as an independent CA, to convert its cash basis income statement information to accrual ba
> The shareholders' equity section of Emerson Corporation as at December 31, 2014, follows: Net income of$24 million for 2014 reflects a total effective tax rate of25%. Included in the net income figure is a loss of $15 million (before tax) relating to th
> Environmental Corporation specializes in the production and sale of eco-friendly packaging. In 2014, Environmental reported net income (earnings) in excess of analyst expectations. This included a significant gain on sale of investments in the year and l
> Rainy Day Umbrella Corporation had the following balances at December 31, 2013 (all amounts in thousands): preferred shares $2,006; common shares $5,291; contributed surplus 52,225; retained earnings $ 13,692; and accumulated other comprehensive income 5
> Plato Inc. prepares financial statements in accordance with IFRS and uses the following headings on its statement of financial position: l. Current assets 2. Long-term investments 3. Property, plant, and equipment 4. Intangible assets 5. Other assets
> The Holiday Corporation, a private company, began operations on January I, 2011. During its first three years of operations, Holiday reported net income and declared dividends as follows: The following information is for 2014: Instructions Prepare a 20
> The following are selected ledger accounts of Holland Rose Corporation at December 31, 2014: Holland's effective tax rate on all items is 25%. A physical inventory indicates that the ending inventory is $686,000. The number of common shares outstanding
> The following balances were taken from the books of the Big Track Trucking Company Limited on December 31, 2014: Assume the total effective tax rate on all items is 25%. Instructions Prepare a multiple-step income statement showing expenses by function.
> Two accountants, Yuan Tsui and Sergio Aragon, are arguing about the merits of presenting an income statement in the multiple-step versus the single-step format, and presenting expenses in the nature or function of expense format. The discussion involves
> The financial records of Geneva Inc. were destroyed by fire at the end of 2014. Fortunately, the controller had kept the following statistical data related to the income statement: l. The beginning merchandise inventory was 584,000 and it decreased by 20
> The following is information for Gottlieb Corp. for the year ended December 31, 2014: The effective tax rate is 25% on all items. Gottlieb prepares financial statements in accordance with IFRS, and accounts for its investments in accordance with IAS 39.
> The following information was taken from the records of Presley Inc. for the year 2014: The following additional information was also available: income tax applicable to income from continuing operations, $187,000; income tax applicable to loss from oper
> Income statement information for Flett Tire Repair Corporation for the year 2014 follows: The effective tax rate on all income is 25%, and Flea applies ASPE. Instructions (a) Prepare a multiple-step income statement for 2014, showing expenses by function
> Certain account balances follow for Vincenti Products Corp. Instructions Based on the balances, calculate the following: (a) Total net revenue, (b) Net income or loss, and (c) Dividends declared during the current year. Rental revenue Interest exp
> Several of Jae Corporation's major customers experienced cash flow problems in 2014, mainly due to their increasing labor and production costs in 2013 and 2014. As a result, Jae's accounts receivable turnover ratio (net sales revenue/average trade receiv
> The classifications on Chesapeake Limited's statement of financial position are as follows: l. Current assets 2. Long-term investments 3. Property, plant, and equipment 4. Intangible assets 5. Other assets 6. Current liabilities 7. Non-current liabi
> At December 31, 2014, Tres Hombres Corporation had the following shares outstanding: 10% cumulative preferred shares, 107,500 shares outstanding $10,750,000 Common shares, 4,000,000 shares outstanding 20,000,000 During 2014, the corporation's only s
> In 2014, Renato Corp. had cash receipts from customers of $ 152,000 and cash payments for operating expenses of $97,000. At January I, 2014, accounts receivable was $ 13,000 and total prepaid expenses was $17,500. At December 31, 2014, accounts receivabl
> Turner Limited had 40,000 common shares on January I, 2014. On April I, 8,000 shares were repurchased. On August 31, 12,000 shares were issued. Calculate the number of shares outstanding at December 31, 2014, and the weighted average number of shares for
> Use the information in BE4-14 to prepare a statement of retained earnings for Global Corporation, assuming that in 2014, Global discovered that it had overstated 2011 depreciation by $25,000 (net of tax). In BE4-14 Global Corporation prepares financial s
> Global Corporation prepares financial statements in accordance with ASPE. At January I, 2014, the company had retained earnings of $529,000. In 2014, net income was $1,646,000, and cash dividends of $660,000 were declared and paid. Prepare a 2014 stateme
> Your Pal Postcard Company Limited report the following for 2014: sales revenue $900,000; cost of sales $750,000; operating expenses $100,000; and unrealized gain on fair value-OCI investments $60,000. The company had January I, 2014 balances as follows:
> The financial statements for Bombardier Inc. for the year ended December 31, 2011, can be found on the company’s; website or at www.sedar.com. Instructions (a) What form of presentation has the company used in preparing its balance sheet? (b) Calculate
> From the International Accounting Standards Board website (www.iasb.co.uk), access the Discussion Paper: Preliminary Views on Financial Statement Presentation dated October 2008 (or if out in Exposure Draft, the most updated version). Instructions (a) '
> The financial statements for Quebecor Inc. and Thomson Reuters Corporation may be found on SEDAR (www.sedar.com) or the companies' websites. Instructions (a) 'What business is Quebecor Inc. in? Is Thomson Reuters Corporation a good benchmark for compari
> Several statement of financial position accounts of Greenspoon Inc. follow: 1. FV-OCI Investments 2. Common Shares 3. Dividends Payable 4. Accumulated Depreciation- Equipment 5. Construction in Process (Warehouse) 6. Petty Cash 7. Interest Payable
> Obtain the 2001 and 2011 annual reports for Goldcorp Inc. (from SEDAR www.sedar.com). Read the material leading up to the financial statements and answer the following questions: (a) Explain how the company's business changed from 2000 to 2001. 'What sig
> The financial statements for Maple Leaf Foods Inc. may be found on the company's website or at www.sedar.com. Instructions (a) Calculate the liquidity and coverage (solvency) ratios identified in Appendix 5A for both years that are presented in the fina
> The partner in charge of the Spencer Corporation audit comes by desk and leaves a letter he has started to the CEO and a copy of cash flows for the year ended December 31, 2014. Because he must leave on an emergency, he asks you to finish the letter by e
> Write a brief essay highlighting the differences between IFRS and accounting standards for private enterprises noted in this chapter, discussing the conceptual justification for each.
> In determining if a contingent liability should be recognized or not on the balance sheet at the report date, management must decide if there is a present obligation or a contingent obligation or both. Only a present obligation would be recorded under IF
> Brookfield Properties Corporation reported net income of $1,896 million for the year ended December 31, 2011, which is up 12.5% from the prior year. The company owns, develops, and manages North American office properties and its shares trade on both the
> The Big and Rich Corporation had income from operations before tax for 2014 of57.3 million. In addition, it suffered an unusual and infrequent loss of $ 1,770,000 from a tornado. Of this amount, $500,000 was insured. In addition, the company realized a l
> The ethical accountant for Khouri Industries, is trying to decide how to present property, plant, and equipment in the notes to the balance sheet. She realizes that the statement of cash flows will show that the company made a significant investment in p
> Franklin Drug Ltd. (FDL) is a global public company that researches, develops, markets, and sells prescription drugs. Revenues and net income are down this year, partly because one of the company’s competitors, Balogun Drug Inc. (BDI), has created and is
> Hastings Inc. (HI) is a manufacturer that produces stainless steel car parts. It began as a fan1ily business several years ago and all shares are owned by the Hastings family. The company's main assets are its manufacturing facility and surrounding land.
> Use the information in E5-14 for Carmichael Industries. Information from E5-14o Instructions (a) Calculate the current and acid test ratios for 2013 and 2014. (b) Calculate Carmichael's current cash debt coverage ratio for 2014. (c) Based on the analyse
> In the late 1990s, CIBC helped Enron Corporation structure 34 "loans" that appeared in the financial statements as cash proceeds from sales of assets. Enron subsequently went bankrupt in 200 I and left many unhappy investors and creditors with billions o
> Statement of financial position items for Montoya Inc. follow for the current year, 2014: Instructions (a) Prepare a classified statement of financial position in good form. The numbers of authorized shares are as follows: 400,000 common and 20,000 pref
> A list of accounts follows: / / The Loss-Other account contains a loss due to a flood during the year. Instructions Prepare a classified statement of financial position in good form, without monetary an10unts.
> A comparative statement of financial position for Spencer Corporation follows: Additional information: 1. Net income for the fiscal year ending December 31, 2014, was $19,000. 2. In March 2014, a plot of land was purchased for future construction of a p
> The statement of financial position of Rodges Corporation follows (in thousands): Instructions Evaluate the statement of financial position. Briefly describe the proper treatment of any item that you find incorrect. Assume the company follows IFRS. RO
> The statement of financial position of Sargent Corporation follows for the current year, 2014: The following additional information is available: 1. The current assets section includes the following: cash $150,000; accounts receivable $ 170,000, less $10
> Jia Inc. applies ASPE and had the following statement of financial position at the end of operations for 2013: During 2014, the following occurred: 1. Jia Inc. sold some of its fair value-net income investment portfolio for $19,000. This transaction res
> Use the information in E5-17 for Marubeni Corporation. The information in E5-17 Instructions (a) Calculate the current ratio and debt to total assets ratio as at December 31, 2013 and 2014. Calculate the free cash flow for December 31, 2014. (b) Based o
> The comparative statement of financial position of Marubeni Corporation for the fiscal year ending December 31, 2014, follows: Net income of $37,000 was reported and dividends of $13,000 were paid in 2014. New equipment was purchased, and equipment with
> The income statement of Kneale Transport Inc. for the year ended December 31, 2014, reported the following condensed information: Kneale's statement of financial position contained the following comparative data at December 31: Additional information:
> The major classifications of activities reported in the statement of cash flows are operating, investing, and financing. For this question, assume the following: 1. The direct method is used. 2. The indirect method is used. Instructions Assume that the
> A comparative statement of financial position for Carmichael Industries Inc. follows: Additional information: 1. Net income for the fiscal year ending December 31, 2014, was $ 129,000. 2. Cash dividends of $60,000 were declared and paid. Dividends paid
> It is February 2015 and Janix Corporation is preparing to issue financial statements for the year ended December 31, 2014. To prepare financial statements and related disclosures that are faithfully representative, Janix is reviewing the following events
> The current assets and current liabilities sections of the statement of financial position of Agincourt Corp. are as follows: The following errors have been discovered in the corporations accounting: 1. January 2015 cash disbursements that were entered
> Zezulka Corporation's statement of financial position at the end of 2013 included the following items: The following information is available for 2014: 1. Net income was $391,000. 2. Equipment (cost of $20,000 and accumulated depreciation of $8,000) was
> The Blue Collar Corporation had income from continuing operations of $ 12.6 million in 2014. During 2014, it disposed of its restaurant division at an after tax loss of $89,000. Before the disposal, the division operated at a loss of $315,000 (net of tax
> Selected accounts follow of Aramis Limited at December 31, 2014: The following additional information is available: 1. Inventory is valued at lower of cost and net realizable value using FIFO. 2. Equipment is recorded at cost. Accumulated depreciation, c
> Chelsea Smith is the controller of Lincoln Corporation and is responsible for the preparation of the year-end financial statements on December 31. Lincoln prepares financial statements in accordance with ASPE. The following transactions occurred during t
> Taylor Corporation had net sales revenue of $2,780,000 and investment revenue of$103,000 in 2014. Other items pertaining to 2014 were as follows: Taylor has 10,000 common shares outstanding. Prepare a single-step income statement showing expenses by nat
> The trial balance of Zeitz Corporation at December 31, 2014, follows: Instructions (a) Prepare a classified statement of financial position as at December 31, 2014. Ignore income taxes. (b) Is there any situation where it would make more sense to have a
> Samson Corporation is preparing its December 31, 2014 statement of financial position. The following items may be reported as either current or long-term liabilities: 1. On December 15, 2014, Samson declared a cash dividend of $2.50 per share to sharehol
> Assume that Iris Inc. has the following accounts at the end of the current year: 1. Common Shares 2. Raw Materials 3. FV-OCI Investments 4. Unearned Rent Revenue 5. Work-in-Process Inventory 6. Intangible Assets-Copyrights 7. Buildings 8. Notes Receivabl
> The bookkeeper for Garfield Corp. has prepared the following statement of financial position as at July 31, 2014: The following additional information is provided: 1. Cash includes $1,200 in a petty cash fund and $12,000 in a bond sinking fund. 2. The n
> Lowell Corp's December 31, 2014 trial balance includes the following accounts: Inventory……………………………………………………………$120,000 Buildings……………………………………………………………$207,000 Accumulated Depreciation-Equipment…………………$19,000 Equipment…………………………………………………………$190,000 Lan
> The following accounts are in Tan Limited's December 31, 2014 trial balance: Prepaid Rent………………………………………………$1,300 Fair Value-OCT Investments………………………$62,000 Unearned Revenue………………………………………$7,000 Land Held for Investment………………………………$139,000 Long-Term Rec
> Kahnert Corporation's adjusted trial balance contained the following asset accounts at December 31, 2014: Cash……………………………………………………………………………..$3,000 Treasury Bills (with original maturity of three months) $4,000 Land……………………………………………………………………………..$40,000
> Aero Inc. had the following statement of financial position at the end of operations for 2013: During 2014, the following occurred: 1. Aero liquidated its investment portfolio at a loss of $5,000. The investments were fair value-net income investments. 2
> Gator Printers Incorporated is an on-line retailer of printing services, reaching thousands of customers across North America every year. The company was founded 15 years ago as a university campus copy shop, and has reported consistent year-over-year sa
> Larsen Corporation is a popular clothing retailer with 15 stores located across Canada. After five consecutive years of increasing sales, Larsen would like to expand operations by adding 10 stores within the next three years. To help fund the expansion,
> Midwest Beverage Company reported the following items in the most recent year: (a) Calculate net cash provided (used) by operating activities, the net change in cash during the year, and free cash flow. Dividends paid are treated as financing activities
> Mega Inc’s manufacturing division lost 5100,000 (net of tax) for the year ended December 31, 2014, and Mega estimates that it can sell the division at a loss of $200,000 (net of tax). The division qualifies for treatment as a discontinued operation. (a)
> Use the information from BE5-14 for Mills Corporation. Determine Mills’s free cash flow, assuming that it reported net cash provided by operating activities of $400,000. Information from BE5-14 Sale of land and building $196,000 25,
> Use the information from BE5- 14 for Mills Corporation. (a) Calculate the net cash provided (used) by financing activities, if dividends paid are treated as operating activities. (b) Explain how your answer to part (a) would be different if Mills prepa
