Question 1 On February 18, 2019 Krusty Burger Ltd. acquired 5,000 shares (10%) of Moe's Tavem Ltd. for $105 per share. Krusty Burger received a cash dividend of $0.50 per share on November 6, 2019. On December 31, 2019, Krusty's year-end, the fair value of the Moe's Tavern Ltd. investment was $520,000. On Feb 1, 2020 Krusty Burger sells the shares for S106 per share. Prepare Journal Entries for the above transactions. Explanations are not required. DATE ACCOUNT DEBIT CREDIT Question 2 The Atco Corporation reported the following transactions for the year 2019 Jan. 1 Purchased 35% of the common shares of Utilities Board Corporation for $700,000. This is a long-term investment giving Atco significant influence over the operations of Utilities Board. Sept. 30 Received a $42,000 dividend on the Utilities Board Corporation shares. Dec. 31 Utilities Board Corporation reported net income of $176,200 for the year ended December 31, 2019. Feb 28 Atco sold 50% of the Utilities Board shares for $400,000 Prepare Journal Entries for the above transactions. Explanations are not required. DATE ACCOUNT DEBIT CREDIT Question 3 1. During the month of March, Vancouver Industries purchased office supplies on account for 58,000 and paid GST of 5% 2. Vancouver Industries has pre-tax sales on account of 552,000 during March and collected GST of 5% 3. At the end of August, the company remitted (paid) the GST paid and collected to the Canada Revenue Agency. Required Prepare the journal entries to record the above transactions. Explanations are not required. DATE ACCOUNT DEBIT CREDIT Question 4 Chen's gross payroll for the work week ending January 17 was $105,000. The company deducted $5,236 for CPP, 53,517 for EI, and $14,150 for income tax from the employees' pay. Chen's payroll costs for the week were $5,236 for CPP and 54,924 for . Chen paid payroll on January 30. On January 31, Chen remitted payroll (source) deductions to CRA. Required Prepare the journal entries to record the above transactions, Explanations are not required. DATE ACCOUNT DEBIT CREDIT Question 5 On January 1, 2019, Denver Corporation issued 10-year, 7% bond with a maturity value of $150,000. The bonds sells at 95.00 and pay interest on July 1 and January 1. Denver Corporation amortizes the bond using the effective interest rate method. The market rate is 8%. Required Prepare the journal entries to record the sale of the bond, the interest expense for July 1 and the interest accrual for December 31 (company has a year end of December 31). Explanations are not required. DATE ACCOUNT DEBIT CREDIT