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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