Consolidation adjustment necessary when affiliate's debt is acquired from non-affiliateAssume that a Parent company owns 65 percent of its Subsidiary. The parent company uses the equity method to account for its Equity investment. On January 1, 2015, the Parent(face) 10 year, 10 percent bonds payable for a $100,000 premium. The bonds pay interest on December 31 of each year. On January 1, 2018,amortization. In preparing the consolidated financial statements for the year ended December 31, 2019, what consolidating entry adjustment is necessarytheSubsidiary$0+Please answer all parts of the question.$2,000,000use straight-linecompany issued to an unaffiliated companyacquired 30 percent of the bonds for $572,000. Both companiesfor the beginning-of-year Equity investment balance?

Equity investment balance represents the shareholders' stake in the company, identified on a…

Answered: ent company issued to an unaft of the…

Business

Accounting

ent company issued to an unaft of the bonds for $572,000. Bot year Equity investment balance

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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Entries for Issuing and Calling Bonds; Loss Rushton Corp., a wholesaler of music equipment, issued $6,490,000 of 25-year, 11% callable bonds on March 1, 20Y1, at their face amount, with interest payable on March 1 and September 1. The fiscal year of the company is the calendar year. 20Υ1 Issued the bonds for cash at their face Mar. 1 amount. Sept. 1 Paid the interest on the bonds. 20Y5 Sept. 1 Called the bond issue at 102, the rate provided in the bond indenture. (Omit entry for payment of interest.) Journalize the entries to record the above selected transactions. Issued the bonds for cash at their face amount. If an amount box does not require an entry, leave it blank. 88 20Y1 Mar. 1 Cash v Bonds Payał Bonds P Paid the interest on the bonds. If an amount box does not require an entry, leave it blank. 88 20Y1 Sept. 1 Interest Expe v Cash Called the bond issue at 102, the rate provided in the bond indenture. (Omit entry for payment of interest.) If an amount box does not require an…
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Recording in the Accounting System On January 1, 2014, Jack Company issues the $4,110,000, 8%, 10-year bonds described above for cash of $3,373,263. Journalize the issuance of the Jack Company bonds.
On June 30, Jamison Company issued $2,500,000 of 10-year, 9% bonds, dated June 30, for $2,580,000. Present entries to record the following transaction. (a) Issuance of bonds.
Bond (held-to-maturity) investments Journalize the entries to record the following selected held-to-maturity investment transactions for Beacon Trust: If an amount box does not require an entry, leave it blank. a. Purchased for cash $576,000 of Vasquez City 7% bonds at 100 plus accrued interest of $10,080. b. Received first semiannual interest payment. c. Sold $288,000 of the bonds at 99 plus accrued interest of $1,680. d. Received face value of remaining bonds at their maturity.
If $307,000 of 7% bonds are issued at 94, the amount of cash received from the sale is Oa. $307,000 Ob. $285,510 O c. $288,580 Od. $328,490
Debt Investment Transactions, Available-for-Sale Valuation Rekya Mart Inc. is a general merchandise retail company that began operations on January 1, Year 1. The following transactions relate to debt investments acquired by Rekya Mart Inc., which has a fiscal year ending on December 31: Year 1 Apr. 1. Purchased $60,000 of Smoke Bay 7%, 10-year bonds at their face amount plus accrued interest of $700. The bonds pay interest semiannually on February 1 and August 1. May 16. Purchased $96,000 of Geotherma Co. 6%, 12-year bonds at their face amount plus accrued interest of $240. The bonds pay interest semiannually on May 1 and November 1. Aug. 1. Received semiannual interest on the Smoke Bay bonds. Sept. 1. Sold $24,000 of Smoke Bay bonds at 104 plus accrued interest of $140. Nov. 1. Received semiannual interest on the Geotherma Co. bonds. Dec. 31 Accrued $840 interest on Smoke Bay bonds. Dec. 31 Accrued $480 interest on Geotherma Co. bonds. Year 2 Feb. 1. Received…
Selected debt investment transactions for Easy A Inc., a retail business, are listed below. Easy A Inc. has a fiscal year ending on December 31. Year 1: Feb. 1 May 1 Jun. 1 Sept. 1 Oct. 1 Dec. 1 Dec. 31 Year 2: Mar. 1 Jun. 1 Sept. 1 Bought $35,000 of 6%, XYZ Co. 12-year bonds at their face amount plus accrued interest of $700. The bonds pay interest semiannually on June 1 and December 1. Bought $200,000 of Simple Tree 5%, 20-year bonds at their face amount plus accrued interest of $2,500. The bonds pay interest semiannually on March 1 and September 1. Received semiannual interest on the XYZ Co. bonds. Received semiannual interest on the Simple Tree bonds. Sold $15,000 of Simple Tree bonds at 102% plus accrued interest of $63. Received semiannual interest on the XYZ Co. bonds. Accrued $3,135 interest on the Simple Tree bonds. Accrued $175 interest on the XYZ Co. bonds. Received semiannual interest on the Simple Tree bonds. Received semiannual interest on the XYZ Co. bonds. Received…
Entries for Investment in Bonds, Interest, and Sale of Bonds Parilo Company acquired $204,000 of Makofske Company, 6% bonds on May 1, 20Y5, at their face amount. Interest is paid semiannually on May 1 and November 1. On November 1, 20Y5, Parilo sold $44,400 of the bonds for 96. Journalize the entries to record the following under the cost method: If an amount box does not require an entry, leave it blank. Questions are attached with image Needing answers for questions: B C D
Apr.1Purchased for cash $372,000 of Vasquez City 3% bonds at 100 plus accrued interest of $2,790. June30Received first semiannual interest payment. July31Sold $139,200 of the bonds at 98 plus accrued interest of $348. Aug.1Received face value of remaining bonds at their maturity. Required: Journalize the entries to record the above selected bond investment transactions for Beacon Trust. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
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Am. 113.