Alpha Corp. owns 100% of Beta Co. Beta has invested in Alpha Bonds with a $2 million face value. Each company's December 31, 2022 balances in connection with these bonds are shown below. Balances on Alpha's Books: Interest Expense Unamortized Bond Discount Bonds Payable Balances on Beta's Books: Investment in Bonds Unamortized Bond Premium Interest Income Dr. 52,142 22,427 Dr. 2,000,000 24,445 Cr. 2,000,000 Cr. 56,836 Required: Prepare the consolidating entry to adjust the above amounts. Use the grid below to show your answer. Dr. Cr.
Alpha Corp. owns 100% of Beta Co. Beta has invested in Alpha Bonds with a $2 million face value. Each company's December 31, 2022 balances in connection with these bonds are shown below. Balances on Alpha's Books: Interest Expense Unamortized Bond Discount Bonds Payable Balances on Beta's Books: Investment in Bonds Unamortized Bond Premium Interest Income Dr. 52,142 22,427 Dr. 2,000,000 24,445 Cr. 2,000,000 Cr. 56,836 Required: Prepare the consolidating entry to adjust the above amounts. Use the grid below to show your answer. Dr. Cr.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please fill out the consolidating entries as necessary
Transcribed Image Text:Alpha Corp. owns 100% of Beta Co. Beta has invested in Alpha Bonds with a $2 million face value. Each
company's December 31, 2022 balances in connection with these bonds are shown below.
Balances on Alpha's Books:
Interest Expense
Unamortized Bond Discount
Bonds Payable
Balances on Beta's Books:
Investment in Bonds
Unamortized Bond Premium
Interest Income
Dr.
52,142
22,427
Dr.
2,000,000
24,445
Cr.
2,000,000
Cr.
56,836
Required:
Prepare the consolidating entry to adjust the above amounts. Use the grid below to show your answer.
Dr.
Cr.
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