2025 Big Little Sales Interest expense Interest revenue 300,000 254,000 9,700 9,750 Other expenses 280,000 230,000 Gain/loss on bond retirement Investment income 11,400 Net income Income to NC Interest Income to controlling interest Beginning R/E Add: Income Less: Dividends Ending R/E Current assets 228,270 0 0 20,000 60,000 Investment in Little 159,920 Investment in bonds 101,500 Other Non-current assets 168,000 271,400 Current liabilties 60,000 30,000 Bonds payable 100,000 Premium on bonds 1,800 Common stock 120,000 40,000 Retained earnings NC Interest 2024 Big Little Sales Interest expense Interest revenue 290,000 245,000 9,700 9,750 Other expenses 276,000 230,000 Gain/loss on bond retirement Investment income 4,520 Net income Income to NC Interest Income to controlling interest Beginning R/E Add: Income Less: Dividends Ending R/E Current assets Investment in Little Investment in bonds Other Non-current assets 200,000 150,000 0 10,000 20,000 50,000 148,520 101,750 138,000 267,400 Current liabilties 60,000 30,000 Bonds payable 100,000 Premium on bonds 2,100 Common stock 120,000 40,000 Retained earnings NC Interest dr cr Consolidated

2025 Big Little Sales Interest expense Interest revenue 300,000 254,000 9,700 9,750 Other expenses 280,000 230,000 Gain/loss on bond retirement Investment income 11,400 Net income Income to NC Interest Income to controlling interest Beginning R/E Add: Income Less: Dividends Ending R/E Current assets 228,270 0 0 20,000 60,000 Investment in Little 159,920 Investment in bonds 101,500 Other Non-current assets 168,000 271,400 Current liabilties 60,000 30,000 Bonds payable 100,000 Premium on bonds 1,800 Common stock 120,000 40,000 Retained earnings NC Interest 2024 Big Little Sales Interest expense Interest revenue 290,000 245,000 9,700 9,750 Other expenses 276,000 230,000 Gain/loss on bond retirement Investment income 4,520 Net income Income to NC Interest Income to controlling interest Beginning R/E Add: Income Less: Dividends Ending R/E Current assets Investment in Little Investment in bonds Other Non-current assets 200,000 150,000 0 10,000 20,000 50,000 148,520 101,750 138,000 267,400 Current liabilties 60,000 30,000 Bonds payable 100,000 Premium on bonds 2,100 Common stock 120,000 40,000 Retained earnings NC Interest dr cr Consolidated

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter22: Corporations: Bonds

Section: Chapter Questions

Problem 5MC: Bond sinking fund earnings are (a) subtracted from the bond sinking fund. (b) added to the bond...

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Similar questions

Presented below are two independent cases related to available-for-sale debt investments. Amortized cost Fair value Expected credit losses Case 2 Case 1 Case 2 $37,230 $91,300 26,680 100,350 82,740 For each case, determine the amount of impairment loss, if any. Of no loss, please enter O. Do not leave any fields blank) Case 1 Impairment Loss $ Impairment Loss $ 21,640
Question 21 If an issuer retires a debt issue before its maturity, the amount paid to do so is called the: A) sinking fund amount. B the discount. Ⓒ par or face amount. D amortized payoff. E call price.
At December 31, 2024, Hull-Meyers Corporation had the following investments that were purchased during 2024, its first year of operations: Trading Securities: Amortized cost Fair Value Security A Security B Totals Securities Available-for-Sale: Security C Security D Totals Securities to Be Held-to-Maturity: Security E Security F Totals $ 900,000 105,000 $ 1,005,000 $ 700,000 900,000 $ 1,600,000 $ 490,000 615,000 $ 1,105,000 $ 910,000 100,000 $ 1,010,000 $ 780,000 915,000 $ 1,695,000 $ 500,000 610,000 $ 1,110,000 No investments were sold during 2024. All securities except Security D and Security F are considered short-term investments. None of the fair value changes is considered permanent. Required: Complete the following table. Note: Amounts to be deducted should be indicated with a minus sign.
None
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t4
Q4
Interest expense on the income statement: A) B) C) D) is net of any bond premium amortization will show the repayment of bond principle should not include bond interest will result in an increase in net income
15. The amortization of bond premium on long-term debt should be presented in a statement of cash flows (using the indirect method for operating activities) as a(n) deduction from net income. investing activity. addition to net income. financing activity.
History Bookmarks People Tab Window Help teach X G the order of presentation of ac X m/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessic When callable bonds are redeemed below carrying value, Oa. Gain on Redemption of Bonds is credited Ob. Retained Earnings is debited Oc. Loss on Redemption of Bonds is debited Od. Retained Earnings is credited
102.
____ 60. The journal entry a company records for the issuance of bonds when the contract rate is greater than the market rate would be a. debit Bonds Payable, credit Cash b. debit Cash and Discount on Bonds Payable, credit Bonds Payable c. debit Cash, credit Premium on Bonds Payable and Bonds Payable d. debit Cash, credit Bonds Payable ____ 61. When using the Cost Method of accounting for equity Investments, the receipt of cash dividends a. decreases the amount of the Dividend Revenue b. increases the amount of the Dividend Revenue c. decreases the amount of the Investment account d. increases the amount of the Investment account