b. Prepare the worksheet consolidation entry orentries needed to remove the effects of theintercorporate bond ownership in preparingconsolidated financial statements for 20X6.ConsolidationWorksheet EntriesARecord the entry to eliminate the effects of the intercompany ownership inSuspect bonds for 20X6.BNote: Enter debits before credits.Event1Record entryConsolidationWorksheet Entries E8-8A ConstructiveYear (Straight-LineSuspect Company issued $600,000 of 9 percentfirst mortgage bonds on January 1, 20X1, at 103.The bonds mature in 20 years and pay interestsemiannually on January 1 and July 1. PrimeCorporation purchased $400,000 of Suspect'sbonds from the original purchaser on January 1,20X5, for $396,800. Prime owns 60 percent ofSuspect's voting common stock.Note: Assume using straight-line amortization ofbond discount or premium.Required:a. Prepare the worksheet consolidation entry orentries needed to remove the effects of theintercorporate bond ownership in preparingconsolidated financial statements for 20X5.ConsolidationWorksheet EntriesARetirement at Beginning ofMethod) LO 8-2BRecord the entry to eliminate the effects of the intercompany ownership inSuspect bonds for 20X5.Note: Enter debits before credits.Event1AccountsDebitCredit

Bond is a form of loan or borrowed money. the loan was obtained by a company from investors , In…

Answered: Record the entry to eliminate the…

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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Tr.17.
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Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method On the first day of its fiscal year, Chin Company issued $26,500,000 of five-year, 12% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 13%, resulting in Chin receiving cash of $25,547,585. a. Journalize the entries to record the following: 1. Issuance of the bonds. 2. First semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) 3. Second semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) If an amount box does not require an entry, leave it blank. 1. 2. 3. 300 000 000 000 000 b. Determine the amount of the bond interest expense for the first year.
Which of the following would NOT be included in the journal entry to show the conversion of bonds payable? ( NIE 13) A credit to gain on conversion credit to additional paid in capital debit to bond premium debit to bonds payable
What account would be debited (1), what account would be credit (2), and what amount would be paid to record the journal entry for each interest payment based on a $200,000 five-year, 10% bond and the bond was issued at $192,462 (11%) and interest is paid semiannually? JOURNAL Page 25 DATE DESCRIPTION P.REF. DEBIT CREDIT (1) ? (2) ? (1) Interest Expense debit $11,000, and (2) Cash credit $11,000 (1) Interest Expense debit $10,000 and (2) Cash credit $10,000 (1) Cash debit $20,000 and (2) Interest Expense credit $20,000 (1) Cash debit $22,000, and (2) Interest Expense credit $22,000
Please answer both. This is part A and B
Please see below. Need help with this.
Amortize Discount by Interest Method On the first day of its fiscal year, Ebert Company issued $12,000,000 of 5-year, 11% bonds to finance its operations. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 12%, resulting in Ebert Company receiving cash of $11,558,459. The company uses the interest method. a. Journalize the entries to record the following: 1. Sale of the bonds. Round amounts to the nearest dollar. If an amount box does not require an entry, leave it blank. 2. First semiannual interest payment, including amortization of discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. 3. Second semiannual interest payment, including amortization of discount. Round to the nearest dollar. If an amount box does not require an entry. leave it blank.

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Record the entry to eliminate the effects of the intercompany ownership in Suspect bonds for 20X5. Note: Enter debits before credits. Event 1 Accounts Debit Credit