AccountingPart of the adjusted trial balance of Decky Corporation and Diana Corporation, a 90% owned subsidiary of Decky, for the year ended December 31, 2020 is as follows: Decky Corporation Debit (Credit)Diana Corporation Debt (Credit)Accounts receivable----2000Invest in Bonds----105400Interest Payable(4000) Bonds Payable 8%,Due 2023(196.400) Interest income----4200Interest expense Diana Corporation obtained Decky Bonds with a nominal value of Rp. 200000 on April 1, 2020 for Rp. 207200. Payment of interest on April 1 and October 1, and due on April 1, 2023Requested:Determine the gains and losses on the Bonds to be presented in the 2020 consolidated statement of income and their respective allocations to subsidiaries and non-controlling interests!

Particular Amount Amount Purchase price of 200000 par bonds 207200 Book value of bonds…

Answered: Accounting Part of the adjusted trial…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Accounting

Part of the adjusted trial balance of Decky Corporation and Diana Corporation, a 90% owned subsidiary of Decky, for the year ended December 31, 2020 is as follows:

	Decky Corporation Debit (Credit)	Diana Corporation Debt (Credit)
Accounts receivable	----	2000
Invest in Bonds	----	105400
Interest Payable	(4000)
Bonds Payable 8%, Due 2023	(196.400)
Interest income	----	4200
Interest expense

Diana Corporation obtained Decky Bonds with a nominal value of Rp. 200000 on April 1, 2020 for Rp. 207200. Payment of interest on April 1 and October 1, and due on April 1, 2023

Requested:
Determine the gains and losses on the Bonds to be presented in the 2020 consolidated statement of income and their respective allocations to subsidiaries and non-controlling interests!

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