Required A Required BRequired CPrepare all worksheet consolidation entries needed to remove the effects of the intercorporate bond ownership in prepaconsolidated financial statements for 20X4.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do notyour intermediate calculations. Round your final answers to nearest whole dollar.NoEventA1Bonds payableAccountsInterest incomeInvestment in Scarf Company bondsBond discountInterest expenseB2Interest payableInterest receivableShow IDebit400,000Credit16,000395,2004,80016,000 ×16,00016,000 Exercise 8-3 (Static) Bond Sale at Discount (Effective Interest Method) LO 8-2 Purse Corporation owns 70 percent of Scarf Company's voting shares. On January 1, 20X3, Scarf sold bonds with a par value of $600,000 at 98. Purse purchased $400,000 par value of the bonds; the remainder was sold to nonaffiliates. The bonds maturein five years and pay an annual interest rate of 8 percent. Interest is paid semiannually on January 1 and July 1. Required: What amount of interest expense should bereported in the 20X4 consolidated income statement? Prepare the journal entries Purse recorded during 20X4 with regard to its investment in Scarf bonds. Prepare allworksheet consolidation entries needed to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements for 20X4. RequiredA What amount of interest expense should be reported in the 20X4 consolidated income statement? Note: Do not round your intermediate calculations. Round yourfinal answer to nearest whole dollar.Prepare all worksheet consolidation entries needed to remove the effects of the intercorporate bond ownership in prepaconsolidated financial statements for 20X4. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not yourintermediate calculations. Round your final answers to nearest whole dollar.

Consolidation entries are important entries made in accounting to accurately and completely reflect…

Prepare all worksheet consolidation entries needed to remove the effects of the intercorporate bond ownership in pre consolidated financial statements for 20X4. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do n your intermediate calculations. Round your final answers to nearest whole dollar. A No Event 1 Bonds payable Interest income Accounts Investment in Scarf Company bonds Bond discount Interest expense B 2 Interest payable Interest receivable Debit Credit 400,000 16,000 395,200 4,800 16,000 16,000 16,000 Show

Prepare all worksheet consolidation entries needed to remove the effects of the intercorporate bond ownership in pre consolidated financial statements for 20X4. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do n your intermediate calculations. Round your final answers to nearest whole dollar. A No Event 1 Bonds payable Interest income Accounts Investment in Scarf Company bonds Bond discount Interest expense B 2 Interest payable Interest receivable Debit Credit 400,000 16,000 395,200 4,800 16,000 16,000 16,000 Show

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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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.
What is the correct choice? A $200,000 bond issue with a carrying value of $194,000 is called at 101 and retired. The entry to record the retirement of bonds is: a. Bonds Payable 200,000 Gain on Retirement of Bonds 6,000 Cash 194,000 b. Bonds Payable 200,000 Cash 200,000 c. Bonds Payable 200,000 Loss on Retirement of Bonds 8,000 Unamortised Bond Discount 6,000 Cash 202,000 d. Bonds Payable 194,000 Loss on Retirement of Bonds 8,000 Cash…
Period Cash Paid Interest Expense Interest in Carrying Value Carrying Value Issue Date $85,940 1 $4,100 $ 3,438 $662 85,278 2 4,100 3,411 689 84,589 1. & 2. Record the bond issue assuming the face value of bonds payable is $79,000 and first interest payment. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Record the bond issue. Event General Journal Debit Credit 1 Record the first interest payment. Event General Journal Debit Credit 2
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Mind Tap- Cengage Learning gagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false еВook Show Me How E Calculator Entries for Bond (Held-to-Maturity) Investments Instructions Chart of Accounts Journal (X Instructions Bula Investments acquired $245,200 of Effenstein Corp., 5% bonds at their face amount on October 1, 20Y1. The bonds pay interest on October 1 and April 1. On April 1, 20Y2, Bula sold $112,000 of Effenstein Corp. bonds at 101. Required: Journalize the entries to record the following a. The initial acquisition of the Effenstein Corp. bonds on October 1, 20Y1 - b. The adjusting entry for 3 months of accrued interest earned on the Effenstein Corp. bonds on December 31, 20Y1." c. The receipt of semiannual interest on April 1, 20Y2. " d. The sale of $112,000 of Effenstein Corp. bonds on April 1, 20Y2, at 101." e. The receipt of the face value of the remaining bonds at their maturity on October 1, 20Y8.* "Refer to the chart of…
Presented below is the partial bond discount amortization schedule for Pharoah Corp. Pharoah uses the effective-interest method of amortization. Interest Periods Issue date 1 2 Interest to Be Paid $117,000 117,000 Interest Expense to Be Recorded $124,981 125,380 Discount Amortization $7,981 8,380 Unamortized Discount Debit $100,383 92,402 84,022 Bond Carrying Value Credit $2,499,617 2,507,598 (a) Prepare the journal entry to record the payment of interest and the discount amortization at the end of period 1. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation 2,515,978
Brief Exercise 9-18 (Algo) Record early retirement of bonds issued at a discount (LO9-6) Discount Pizza retires its 6% bonds for $50,000 before their scheduled maturity. At the time, the bonds have a face amount of $52,200 and a carrying value of $48,313. Record the early retirement of the bonds. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet
Redemption of Bonds Payable On December 31, a $1,950,000 bond issue on which there is an unamortized discount of $70,500 is redeemed for $1,908,400. Required: Journalize the redemption of the bonds. Refer to the chart of accounts for the exact wording of the account titles. JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4
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Reporting Issuance and Retirement of Long-Term Debt On the basis of the details of the following bonds payable and related discount accounts, indicate the items to be reported in the Financing Activities section of the statement of cash flows, assuming no gain or loss on retiring the bonds: ACCOUNT Bonds Payable ACCOUNT NO. Balance Date Item Debit Credit Debit Credit Jan. 1 Balance 300,000 2 Retire bonds 60,000 240,000 June 30 Issue bonds 180,000 420,000 ACCOUNT Discount on Bonds Payable ACCOUNT NO. Balance Date Item Debit Credit Debit Credit Jan. 1 Balance 13,500 2 Retire bonds 4,800 8,700 June 30 Issue bonds 12,100 20,800 Dec. 31 Amortize discount 1,040 19,760 Item Section of Statement of Cash Flows Added or Deducted Amount Retire bonds $fill in the blank 3 Issue bonds $fill in the blank 6…
ASsignmentiMain.do?invoker=& takeAssignmentSessionLocator%3D&inprogress%-false rk eBook Calculator Print Item Compute Bond Proceeds, Amortizing Premium by Interest Method, and Interest Expense Ware Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware Co. issued $90,000,000 of five-year, 12% bonds at a market (effective) interest rate of 10%, with interest payable semiannually. Compute the following: a. The amount of cash proceeds from the sale of the bonds. Use the tables of present values in Exhibit 8 and Exhibit 10. Round to the nearest dollar. b. The amount of premium to be amortized for the first semiannual interest payment period, using the interest method. Round to the nearest dollar. C. The amount of premium to be amortized for the second semiannual interest payment period, using the interest method. Round to the nearest dollar. d. The amount of the bond interest expense for the first year. Round to the nearest dollar. SHEET.A... SHEET KSHEET.A...…
eBook Reporting Issuance and Retirement of Long-Term Debt On the basis of the details of the following bonds payable and related discount accounts, indicate the items to be reported in the Financing Activities section of the statement of cash flows, assuming no gain or loss on retiring the bonds: ACCOUNT Bonds Payable Jan. Date June Item Debit 1980 Retire bonds 76,000 Jan. Item Date 30 ACCOUNT Discount on Bonds Payable 1 June 30 Dec. 31 2 Issue bonds Retire bonds Balance Issue bonds Print Item Item Balance Retire bonds Issue bonds Amortize discount Amortization of discount Debit Check My Work 2 more Check My Work uses remaining. 15,300 Credit 228,000 Credit 6,080 1,320 ACCOUNT NO. Debit Section of Statement of Cash Flows Balance Debit Credit ACCOUNT NO. 380,000 304,000 532,000 Balance 17,100 11,020 26,320 25,000 Credit Added or Deducted $ Amount Previous Next