$14.00 Need help with these 7 questions
Technologies, Inc., purchased as a long-term investment $80 million of 8%
bonds, dated January 1, on January 1, 2011. Management has the positive
intent and ability to hold the bonds until maturity. For bonds of similar
risk and maturity the market yield was 10%. The price paid for the bonds was
$66 million. Interest is received semiannually on June 30 and December 31.
Due to changing market conditions, the fair value of the bonds at December
31, 2011, was $70 million.
the journal entry to record Fuzzy Monkey’s investment on January 1, 2011.
the journal entry by Fuzzy Monkey to record interest on June 30, 2011 (at the
the journal entries by Fuzzy Monkey to record interest on December 31, 2011
(at the effective rate).
4. At what
amount will Fuzzy Monkey report its investment in the December 31, 2011,
balance sheet? Why?
5. How would
Fuzzy Monkey’s 2011 statement of cash flows be affected by this investment?
P12–7 -Amalgamated General Corporation
- Securities held-to- maturity, securitiesavailable for sale, and trading
securities (also see included excel file) ACC306 Intermediate Accounting - AU
General Corporation is a consulting firm that also offers financial services
through its credit division. From time to time the company buys and sells
securities intending to earn profits on short-term differences in price. The
following selected transactions relate to Amalgamated’s investment activities
during the last quarter of 2011 and the first month of 2012. The only
securities held by Amalgamated at October 1 were $30 million of 10% bonds of
Kansas Abstractors, Inc., purchased on May 1 at face value. The company’s
fiscal year ends on December 31.
appropriate journal entry for each transaction or event.
P12–10 -Runyan Bakery - Fair value
option; equity method investments ACC306 Intermediate Accounting - AU
4, 2011, Runyan Bakery paid $324 million for 10 million shares of Lavery
Labeling Company common stock. The investment represents a 30% interest in
the net assets of Lavery and gave Runyan the ability to exercise significant
influence over Lavery’s operations. Runyan chose the fair value option to
account for this investment. Runyan received dividends of $2.00 per share on
December 15, 2011, and Lavery reported net income of $160 million for the
year ended December 31, 2011. The market value of Lavery’s common stock at
December 31, 2011, was $31 per share. On the purchase date, the book value of
Lavery’s net assets was $800 million and:
all appropriate journal entries related to the investment during 2011,
assuming Runyan accounts for this investment under the fair value option and
accounts for the Lavery investment in a manner similar to what they would use
for trading securities.
the journal entries required by Runyan, assuming that the 10 million shares
represents a 10% interest in the net assets of Lavery rather than a 30% interest.
P 12–14 Classifying investments ACC306
Intermediate Accounting - AU
E13–21 - Disclosures of liabilities ● LO1 through LO6
Indicate (by letter) the way each of the items listed below
should be reported in a
balance sheet at December 31, 2011.
E 13–22 - Woodmier Lawn Products - Warranty
expense;change in estimate ACC306 Intermediate Accounting - AU
Woodmier Lawn Products introduced a new line of
commercial sprinklers in 2010 that carry a one-year warranty against
manufacturer’s defects. Because this was the first product for which the
company offered a warranty, trade publications were consulted to determine
the experience of others in the industry. Based on that experience, warranty
costs were expected to approximate 2% of sales. Sales of the sprinklers in
2010 were $2.5 million. Accordingly, the following entries relating to the
contingency for warranty costs were recorded during the first year of selling
1. Assuming sales of the sprinklers in 2011
were $3.6 million and warranty expenditures in 2011 totaled $88,000, prepare
any journal entries related to the warranty.
2. Assuming sales of the sprinklers were
discontinued after 2010, prepare any journal entry(s) in 2011 related to the
P 13–6 -Eastern Manufacturing -
Various contingencies ACC306 Intermediate Accounting - AU
Manufacturing is involved with several situations that possibly involve
contingencies. Each is described below. Eastern’s fiscal year ends December 31,
and the 2011 financial statements are issued on March 15, 2012.
the appropriate means of reporting each situation. Explain your reasoning.
anynecessary journal entries and disclosure notes.
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- Posted on Jun 04, 2012 at 5:26:18PM
ACC306 Intermediate Accounting.zip (30K)
New folder/E13-21 Disclosures of liabilities.doc
New folder/E13-22 Woodmier Lawn Products.doc
New folder/P12-1_Fuzzy Monkey.doc
New folder/P12-10 Runyan Bakery.doc
New folder/P12-14 Classifying investments.doc
New folder/P12-7 -Amalgamated General Corporation.doc
New folder/P12-7 Amalgamated.xls
New folder/P13-6 Eastern Manufacturing.doc
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ACC 306.zip (357K)
ACC 306 Week 4 Ethics Case 19-7.doc
ACC 306 Week 4 P 18-5 Shareholders' equity transactions.doc
ACC 306 Week 4 P 18-5.xls
ACC 306 Week 5 Analysis Case 20-10.doc
ACC 306 Week 5 E 20-18 Classifying accounting changes.doc
ACC 306 Week 5 Ethics Case 20-5.doc
ACC 306 Week 5 Ethics Case 21-7.doc
ACC 306 Week 5 Final Paper.doc
ACC 306 Week 5 P 21-11 Arduous Company.doc
ACC 306 Week 5 P 21-14 Surmise Company.doc
ACC 306 Week 1 DQ1 - Equity Method.doc
ACC 306 Week 1 DQ2 - Judgment Case 13-9.doc
ACC 306 Week 1 E 13-21 - Disclosures of liabilities.doc
ACC 306 Week 1 E 13-22 - Woodmier Lawn Products.doc
ACC 306 Week 1 P 12-1 - Fuzzy Monkey Technologies, Inc..doc
ACC 306 Week 1 P12-7 - Amalgamated General Corporation.doc
ACC 306 Week 1 P12-7.xls
ACC 306 Week 1 P12-10 - Runyan Bakery.doc
ACC 306 Week 1 P12-14 Classifying investments.doc
ACC 306 Week 1 P13-6 - Eastern Manufacturing.doc
ACC 306 Week 2 E 14-16 - Wilkins Food Products, Inc..doc
ACC 306 Week 2 E 14-18 - American Food Services, Inc..doc
ACC 306 Week 2 E 15-25 Concepts; terminology.doc
ACC 306 Week 2 Ethics Case 14-8 - Hunt Manufacturing.doc
ACC 306 Week 2 Ethics Case 15-4.doc
ACC 306 Week 2 P 14-21 - Appling Enterprises.doc
ACC 306 Week 2 P 15-3 Rand Medical.doc
ACC 306 Week 3 E 16-24 DePaul Corporation - Balance sheet classification.doc
ACC 306 Week 3 E 16-25 - Case Development - Multiple tax rates; balance sheet classification.doc
ACC 306 Week 3 E 17-10 Abbott and Abbott - Determine pension expense.doc
ACC 306 Week 3 E 17-19 Record pension expense, funding, and gains and losses; determine account balances.doc
ACC 306 Week 3 Ethics Case 17-6.doc
ACC 306 Week 3 Integrating Case 16-5.doc
ACC 306 Week 3 P 16-7 - Sherrod, Inc..doc
ACC 306 Week 3 P 17-16 Lakeside Cable.doc
ACC 306 Week 4 Communication Case 18-10.doc
ACC 306 Week 4 E 18-18 Brenner-Jude Corporation.doc
ACC 306 Week 4 E 18-24 Softech Canvas Goods - Profitability ratio.doc
ACC 306 Week 4 E 19-2 VKI Corporation - Restricted stock award plan.doc
ACC 306 Week 4 E 19-5 American Optical Corporation - Stock options.doc
ACC 306 Week 4 E 19-9 Washington Distribution - Employee share purchase plan.doc
ACC 306 Week 4 E 19-24 EPS; concepts; terminology.doc
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- Posted on Jul. 10, 2012 at 05:17:06AM
ACC 306 week 5.zip (66K)
ACC 306 week 5/ACC 306 Week 5 Analysis Case 20-10.doc
ACC 306 week 5/ACC 306 Week 5 E 20-18 Classifying accounting changes.doc
ACC 306 week 5/ACC 306 Week 5 Ethics Case 20-5.doc
ACC 306 week 5/ACC 306 Week 5 Ethics Case 21-7.doc
ACC 306 week 5/ACC 306 Week 5 Final Paper.doc
ACC 306 week 5/ACC 306 Week 5 P 21-11 Arduous Company.doc
ACC 306 week 5/ACC 306 Week 5 P 21-14 Surmise Company.doc