Saturn Corporation issued $300,000 par value 10-year bonds at 107 on January 1, 20X3, which Star Corporation purchased. On July 1, 20X7, Pluto Corporation purchased $120,000 face value of Saturn bonds from Star. The bonds pay 12 percent interest annually on December 31. The preparation of consolidated financial statements for Saturn and Pluto at December 31, 20X9, required the following consolidation entry: Bonds Payable Premium on Bonds Payable Interest Income Investment in Saturn Corporation Bonds. Interest Expense Investment in Saturn Corporation Stock NCI in NA of Saturn Corp. Multiple Choice Based on the information given above, what amount did Pluto pay when it purchased the bonds on July 1, 20X7? $118.020 $118.920 STIL620 120,000 2,520 14,760 $117.220 118,920 13,560 3,120 1,680

Saturn Corporation issued $300,000 par value 10-year bonds at 107 on January 1, 20X3, which Star Corporation purchased. On July 1, 20X7, Pluto Corporation purchased $120,000 face value of Saturn bonds from Star. The bonds pay 12 percent interest annually on December 31. The preparation of consolidated financial statements for Saturn and Pluto at December 31, 20X9, required the following consolidation entry: Bonds Payable Premium on Bonds Payable Interest Income Investment in Saturn Corporation Bonds. Interest Expense Investment in Saturn Corporation Stock NCI in NA of Saturn Corp. Multiple Choice Based on the information given above, what amount did Pluto pay when it purchased the bonds on July 1, 20X7? $118.020 $118.920 STIL620 120,000 2,520 14,760 $117.220 118,920 13,560 3,120 1,680

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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