Suspect Company Issued $600,000 of 9 percent first mortgage bonds on January 1, 20X1, at 103. The bonds mature in 20 years andpay Interest semiannually on January 1 and July 1. Prime Corporation purchased $400,000 of Suspect's bonds from the originalpurchaser on December 31, 20X5, for $397,000. Prime owns 60 percent of Suspect's voting common stock.Required:a. Prepare the worksheet consolidation entry or entries needed to remove the effects of the Intercorporate bond ownership Inpreparing consolidated financial statements for 20X5. (If no entry is required for a transaction/event, select "No journal entryrequired" In the first account field. Do not round your Intermediate calculations. Round your final answers to nearest whole dollar.)Answer is complete but not entirely correct.NoEventA1Bonds payablePremium on bonds payableAccountsInvestment in Suspect Company bondsGain on bond retirementB2Interest payableInterest receivableDebitCredit400,0009,000397,0009,00018,00018,000b. Prepare the worksheet consolidation entry or entries needed to remove the effects of the Intercorporate bond ownership Inpreparing consolidated financial statements for 20X6. (If no entry is required for a transaction/event, select "No journal entryrequired" In the first account field. Do not round your Intermediate calculations. Round your final answers to nearest whole dollar.)NoEventA1Bonds payablePremium on bonds payableAnswer is not complete.AccountsInterest incomeInvestment in Suspect Company bondsB2Interest payableInterest receivableDebitCredit400,0008,4006,750 x397,20018,00018,000

Corporate Bonds -Corporate bonds are obligations that corporations issue to both public and private…

ompany percent first mortgage bonds ure in terest semiannually on January 1 and July 1. Prime Corporation purchased $400,000 of Suspect's bonds from the aser on December 31, 20X5, for $397,000. Prime owns 60 percent of Suspect's voting common stock. red: pare the worksheet consolidation entry or entries needed to remove the effects of the Intercorporate bond owne ring consolidated financial statements for 20X5. (If no entry is required for a transaction/event, select "No Journ ed" In the first account field. Do not round your Intermediate calculations. Round your final answers to neare Event 1 Bonds payable Answer is complete but not entirely correct. Accounts Premium on bonds payable Investment in Suspect Company bonds Gain on bond retirement 2 Interest payable Debit 400,000 Credit 9,000 397,000 9,000 18,000 10.000

ompany percent first mortgage bonds ure in terest semiannually on January 1 and July 1. Prime Corporation purchased $400,000 of Suspect's bonds from the aser on December 31, 20X5, for $397,000. Prime owns 60 percent of Suspect's voting common stock. red: pare the worksheet consolidation entry or entries needed to remove the effects of the Intercorporate bond owne ring consolidated financial statements for 20X5. (If no entry is required for a transaction/event, select "No Journ ed" In the first account field. Do not round your Intermediate calculations. Round your final answers to neare Event 1 Bonds payable Answer is complete but not entirely correct. Accounts Premium on bonds payable Investment in Suspect Company bonds Gain on bond retirement 2 Interest payable Debit 400,000 Credit 9,000 397,000 9,000 18,000 10.000

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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thank you please fill out the consolidating entries as necessary
Acc
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