On December 31, 2019, Mohr Inc. borrowed $81,241 from Par Bank, signing a $125,000, five-year, noninterest-bearing note. The note was issued to yield 9% interest. Unfortunately, during 2020 Mohr began to experience financial difficulty. As a result, this was determined to be a significant increase in risk, and at December 31, 2020, Par Bank estimated that it was probable that it would receive only $93,750 […]

Angus Farms Ltd., which follows ASPE, had the following transactions during the fiscal year ended December 31, 2020. 1. On May 1, a used tractor was sold at auction. The information concerning this transaction included: 2. After the seeding season, on June 15, 2020, a plough with an original cost of $6,000 and a carrying amount of $500 was discarded. 3. On September 1, 2020, […]

Tarzwell Limited is preparing some analysis of past financial performance and positions to include in the management discussion and analysis (MD&A) portion of the annual report to shareholders. You have suggested that it would be useful for users of the MD&A to include a trend analysis of key balances. You have asked your assistant to analyze the proportion of the percentage increase in each year's […]

Abourawes Services Inc. issued 1,000 $2 convertible preferred shares at $75 and 5,000 common shares at $25 each in 2019. Each preferred share is convertible into three common shares. On March 15, 2020, preferred shareholders converted 200 preferred shares into common shares. Record the conversion

Goldwing Corporation offers enriched parental benefits to its staff. While the government provides compensation based on Employment Insurance legislation for a period of 12 months, Goldwing increases the amounts received and extends the period of compensation. The benefit program tops up the amount received to 100% of the employee's salary for the first 12 months, and pays the employee 75% of his or her full […]

Jeopardy Inc.'s CFO has just left the office of the company president after a meeting about the draft SFP at April 30, 2020, and income statement for the year then ended. (Both are reproduced below.) Our liquidity position looks healthy, the president had remarked. Look at the current and acid-test ratios, and the amount of working capital we have. And between the goodwill write off […]