Homework Help is Here – Start Your Trial Now!
Business
Accounting
Four independent situations follow:

Four independent situations follow:

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Four independent situations follow: (a) For each of the below situations, determine if the accounting treatment of the situation is correct or incorrect. 1. 2. 3. 4. Human Solutions Incorporated believes its people are its most significant asset. It estimates and records their value on its balance sheet. Sharon Barton, president and owner of Baston Industries, has instructed the accountant to report the company's land and buildings at its current value of $500,000 instead of its cost of $350,000. "Reporting the land and buildings at $500,000 will make it easier to get a loan from the bank next month," Sharon states. Will Viceira, owner of the Music To You Company, bought an electric guitar for his personal use. He paid for the guitar with company funds and increased the Equipment account. West Spirit Oil Corp. is a very small oil and gas company that is listed on the Toronto Stock Exchange. The president asked each of the shareholders to approve using ASPE instead of IFRS to reduce expenses for accounting services. He received unanimous approval and has advised the company accountant to prepare the 2024 financial statements accordingly. Attempts: 00 Luse
Transcribed Image Text:Four independent situations follow: (a) For each of the below situations, determine if the accounting treatment of the situation is correct or incorrect. 1. 2. 3. 4. Human Solutions Incorporated believes its people are its most significant asset. It estimates and records their value on its balance sheet. Sharon Barton, president and owner of Baston Industries, has instructed the accountant to report the company's land and buildings at its current value of $500,000 instead of its cost of $350,000. "Reporting the land and buildings at $500,000 will make it easier to get a loan from the bank next month," Sharon states. Will Viceira, owner of the Music To You Company, bought an electric guitar for his personal use. He paid for the guitar with company funds and increased the Equipment account. West Spirit Oil Corp. is a very small oil and gas company that is listed on the Toronto Stock Exchange. The president asked each of the shareholders to approve using ASPE instead of IFRS to reduce expenses for accounting services. He received unanimous approval and has advised the company accountant to prepare the 2024 financial statements accordingly. Attempts: 00 Luse
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS