BE 11.23 – Demmert Manufacturing
Intermediate Accounting
Spiceland, Nelson, and Thomas
10th Edition
Classify expenditures: maintenance, remodel, rearrangement, addition. How should Demmert account for each of these expenditures?
Classify expenditures: maintenance, remodel, rearrangement, addition. How should Demmert account for each of these expenditures?
Prepare the journal entries to record Lance Brothers’ investment in the bonds, and record interest at the effective (market) rate.
Given the bonds acquired, the percentage on the bond, interest rate, and paid investment… find the journal entries.
EARNS PROFITS ON SHORT TERM: What pretax amounts did the company include in its net income?
VERSION: “Expects to earn a profit on short-term”. Read carefully. Gives the cost purchased, cost of sold bonds, the fair value of bonds. Asks for journal entries for three different dates.
AVAILABLE FOR SALE: Find what pretax amounts did the company include in its net income for the years.
VERSION: “Classifies as Available for Sale”. Read carefully. Gives the cost of bonds purchased, cost of bonds sold, and fair value. Asks for the journal entries.
Given the amount bonds were purchased for, the amount they were sold for, and the fair value they ask you to determine the pretax amount included in the net income when using the fair value option.
Given the number of shares, stock market value, and the value per shares… find the fair value of net income.
Given amount owned in outstanding stock of ICA, and paid cash dividend… prepare the financial statements.