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Required A Required B Required C Prepare the journal entries for 20X2 for Stick related to its ownership of Pretzel's bonds. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations. Round your final answers to nearest whole dollar. No 1 Date January 1, 20X2 General Journal Investment in Pretzel Corporation bonds Cash 2 July 1, 20X2 Cash Interest income 3 December 31, 20X Interest receivable Interest income Required A Required B Required C Debit Credit 185,000 185,000 5,400 5,400 5,400 5,400 Prepare the journal entries for 20X2 for Pretzel related to the bonds. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations. Round your final answers to nearest whole dollar. No Date 1 January 1, 20X2 Cash Bonds payable Bond premium 2 July 1, 20X2 Interest expense Bond premium Cash 3 December 31, 20X Interest expense Bond premium Cash Required A Required B Required C General Journal > > > Debit Credit 185,000 180,000 5,000 5,150 x 250 5,400 5,150 x 250 X 5,400 Prepare the worksheet consolidation entries needed on December 31, 20X2, to remove the effects of the intercorporate ownership of bonds. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations. Round your final answers to nearest whole dollar. No Event Accounts A 1 Bonds payable Bond premium Investment in Pretzel Corporation bonds B 2 Interest income Interest expense Bond premium Show less ▲ Debit Credit 180,000 4,500 × 184,500 10,800 10,300 x 500 x

Required A Required B Required C Prepare the journal entries for 20X2 for Stick related to its ownership of Pretzel's bonds. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations. Round your final answers to nearest whole dollar. No 1 Date January 1, 20X2 General Journal Investment in Pretzel Corporation bonds Cash 2 July 1, 20X2 Cash Interest income 3 December 31, 20X Interest receivable Interest income Required A Required B Required C Debit Credit 185,000 185,000 5,400 5,400 5,400 5,400 Prepare the journal entries for 20X2 for Pretzel related to the bonds. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations. Round your final answers to nearest whole dollar. No Date 1 January 1, 20X2 Cash Bonds payable Bond premium 2 July 1, 20X2 Interest expense Bond premium Cash 3 December 31, 20X Interest expense Bond premium Cash Required A Required B Required C General Journal > > > Debit Credit 185,000 180,000 5,000 5,150 x 250 5,400 5,150 x 250 X 5,400 Prepare the worksheet consolidation entries needed on December 31, 20X2, to remove the effects of the intercorporate ownership of bonds. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations. Round your final answers to nearest whole dollar. No Event Accounts A 1 Bonds payable Bond premium Investment in Pretzel Corporation bonds B 2 Interest income Interest expense Bond premium Show less ▲ Debit Credit 180,000 4,500 × 184,500 10,800 10,300 x 500 x

FINANCIAL ACCOUNTING
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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Pretzel Corporation owns 60 percent of Stick Corporation’s voting shares. On January 1, 20X2, Pretzel Corporation sold $180,000 par value, 6 percent first mortgage bonds to Stick for $185,000. The bonds mature in 10 years and pay interest semiannually on January 1 and July 1.

1.)

Required:

  1. Prepare the journal entries for 20X2 for Stick related to its ownership of Pretzel’s bonds.
  2. Prepare the journal entries for 20X2 for Pretzel related to the bonds.
  3. Prepare the worksheet consolidation entries needed on December 31, 20X2, to remove the effects of the intercorporate ownership of bonds.

 

Required A Required B Required C Prepare the journal entries for 20X2 for Stick related to its ownership of Pretzel's bonds. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations. Round your final answers to nearest whole dollar. No 1 Date January 1, 20X2 General Journal Investment in Pretzel Corporation bonds Cash 2 July 1, 20X2 Cash Interest income 3 December 31, 20X Interest receivable Interest income Required A Required B Required C Debit Credit 185,000 185,000 5,400 5,400 5,400 5,400 Prepare the journal entries for 20X2 for Pretzel related to the bonds. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations. Round your final answers to nearest whole dollar. No Date 1 January 1, 20X2 Cash Bonds payable Bond premium 2 July 1, 20X2 Interest expense Bond premium Cash 3 December 31, 20X Interest expense Bond premium Cash Required A Required B Required C General Journal > > > Debit Credit 185,000 180,000 5,000 5,150 x 250 5,400 5,150 x 250 X 5,400 Prepare the worksheet consolidation entries needed on December 31, 20X2, to remove the effects of the intercorporate ownership of bonds. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations. Round your final answers to nearest whole dollar. No Event Accounts A 1 Bonds payable Bond premium Investment in Pretzel Corporation bonds B 2 Interest income Interest expense Bond premium Show less ▲ Debit Credit 180,000 4,500 × 184,500 10,800 10,300 x 500 x
Transcribed Image Text:Required A Required B Required C Prepare the journal entries for 20X2 for Stick related to its ownership of Pretzel's bonds. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations. Round your final answers to nearest whole dollar. No 1 Date January 1, 20X2 General Journal Investment in Pretzel Corporation bonds Cash 2 July 1, 20X2 Cash Interest income 3 December 31, 20X Interest receivable Interest income Required A Required B Required C Debit Credit 185,000 185,000 5,400 5,400 5,400 5,400 Prepare the journal entries for 20X2 for Pretzel related to the bonds. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations. Round your final answers to nearest whole dollar. No Date 1 January 1, 20X2 Cash Bonds payable Bond premium 2 July 1, 20X2 Interest expense Bond premium Cash 3 December 31, 20X Interest expense Bond premium Cash Required A Required B Required C General Journal > > > Debit Credit 185,000 180,000 5,000 5,150 x 250 5,400 5,150 x 250 X 5,400 Prepare the worksheet consolidation entries needed on December 31, 20X2, to remove the effects of the intercorporate ownership of bonds. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations. Round your final answers to nearest whole dollar. No Event Accounts A 1 Bonds payable Bond premium Investment in Pretzel Corporation bonds B 2 Interest income Interest expense Bond premium Show less ▲ Debit Credit 180,000 4,500 × 184,500 10,800 10,300 x 500 x
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