SUB is an 80% owned subsidiary of PAR. SUB issued $100,000 of 8%, 10-year bonds for $95,000 on 1/1/2011. Annual interest is paid on 12/31/. PAR purchased the bonds on 1/1/2017, for $102,000. Both companies use the straight-line method to amortize the premium/discount on the bonds. 1/ How much gain or loss on retirement should be reported in 2017 consolidated statements a. 4,000 loss b. 2,000 loss c. 0 d. 2,000 gain   2/ The net adjustment needed to consolidated income in the consolidation process for 2017 is: (hint: complete the subsidiary income distribution schedule and calculate the surplus of a gain or loss on retirement and the interest adjustment) a. 3,500 decrease b. 3,000 decrease c. 4,000 decrease d. 1,000 increase   3/ The elimination and adjustment process for 2017 consolidated statements include: a. Credit Investment in Subsidiary Bond 102,000 b. Debit Interest Revenue 7,500 c. Credit Interest Expense 8,000 d. Credit Discount 500

Q: Health First Ltd. retires its 8% bonds for $74,000 before its maturity date. Carrying value at the…

A: b. Bonds Payable $78,693     Gain on Bonds Retirement 4,693     Cash 74,000To record the retirement…

Q: Carlton Company is an 80%- owned subsidiary ofMirage Company. On January 1, 2015, Carlton sold…

A: 1.

Q: Cramer Company sold five-year, 8% bonds on October 1, 2016. The face amount of the bonds was…

A: Reference:Staff, M. F. (2024, March 15). How to Calculate Interest Expenses on a Payable Bond. The…

Q: Two independent situations follow: 1. 2. Blossom Corporation redeemed $124,800 face value, 12% bonds…

A: 1. Journal entry for the redemption of Blossom Corporation's bonds:DateAccountDebitCreditJune…

Q: Saratoga Company owns 80% of the outstanding common stock of Windsor Company. On May 1, 2017,…

A: Introduction:   Consolidation is a process in which financial statements of subsidiary is merged…

Q: Enterprise Group issued $100,000 of 3-year, 6% bonds on December 31, 2025, for $106,000. Enterprise…

A: On May 1st, 10% of bonds retired. Book vale of theses 10% bonds = $10,533Par value of bonds (10% of…

Q: carrying amount of the bonds on December 31, 2023?

A: Accrued Interest -:In computation, Accrued Interest relates to the proportion of interest that has…

Q: Cupola Fan Corporation issued 14%, $440,000, 10-year bonds for $421,000 on June 30, 2024. • Debt…

A: The procedure by which a bond issuer reimburses bondholders and essentially removes the bond from…

Q: Crane Company purchased $2400000 of 9%, 5-year bonds from Swifty, Inc. on January 1, 2025 with…

A: Other comprehensive income=Fair value of bonds-Bond carrying value

Q: Megan, Inc., sold $500,000 of its 9%, five-year bonds dated January 1, 2018, on May 1, 2018, for…

A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…

Q: On July 1, 2024, Teal Mountain Inc., a public company, purchased $550.000 of Indigo Corp. 10-year,…

A: Bonds refer to a type of long-term debt that a company or organization issues to borrow money from…

Q: Garfield Company purchased, on January 1, 2017, as a held-to-maturity investment, $80,000 of the 9%,…

A: Workings: Held to maturity bond  = $80000 Purchased at $74086. It means purchased at discount.…

Q: On January 1, 2017, Sarasota Corporation purchased 331 of the $1,000 face value, 9%, 10-year bonds…

A: The problem is asking us to calculate the purchase price of the bonds bought by Sarasota…

Q: On June 31, 2016, Oriental Company had outstanding 8% P 1,000,000 face amount, 15-year bonds…

A: Bond can be defined as financial instruments which is a source of capital for the companies as well…

Q: Sandhill Company purchased $3400000 of 8%, 5-year bonds from Blue, Inc. on January 1, 2021, with…

A: Given, Sales price of bond is $3,490,000 Carrying value of bond is $3,497,440   The computation is…

Q: Powell Company owns an 80% interest in Sauter, Inc. On January 1, 2011, Sauter issued $400,000 of…

A: A bond is a unit of corporate debt. The company issues bonds to the public and donates to the…

Q: upola Fan Corporation issued 12%, $580,000, 10-year bonds for $552,000 on June 30, 2024. Debt issue…

A: Journal entries refer to the recording of financial transactions in the debit and credit format that…

Q: On October 1, 2006, Brick purchased 100 of the $1,000 face value, 8% bonds of Ice, Inc., for…

A: Purchase price, including interest 1,17,000 Less:-  accrued interest -2000 Carrying Value…

Q: On January 1, 2020, Sweet Company purchased $260,000, 6% bonds of Aguirre Co. for $238,911. The…

A: Amortization -The process of depreciating the value of an intangible asset throughout its useful…

Q: On January 2, 2018, Crane Corporation, a small company that follows ASPE, issued $1.8 million of 11%…

A: Bonds payable: Bonds payable is a type of instrument where by an amount is borrowed for a fixed…

Q: Cupola Fan Corporation issued 10%, $600,000, 10-year bonds for $570000 on June 30, 2024. Debt issue…

A: Bonds : Bonds are source of finance from Public.There are various types of bonds issued to…

Q: Crazy Corporation issued $300,000 of 10%, 20-year bonds at 106 on January 1, 2012. Interest is…

A: The bond issue premium represents the excess of bonds proceeds on issue over the face value of the…

Q: On February 1, 2023, Pat Weaver Incorporated (PWI) issued 12%, $1,700, 000 bonds for $2,000,000. PWI…

A: The bonds payable are the financial instruments for the business. The bonds are issued to raise…

Q: On 1/1/2019, Allie Company issued bonds payable of $400,000 at 8%. It was sold at $364,000 with…

A: Bond amortization method is an accounting system to record the bond liabilities. It systematically…

Q: On January 3, 2024, Oriole Company acquires $410000 of Pharoah Company's 10-year, 10% bonds for…

A: Step 1: Compute the coupon interest Face value      410,000  multiply: Coupon rate 10% Coupon…

Q: On October 1, 2021, Best Company purchased as debt investments at fair value through profit or loss,…

A:

Q: Cullumber Corporation had the following nsactions relating Jan. 1, 2022 Dec. 31, 2022 Jan. 1. 2023…

A: The issuance of bonds allows investors to lend money to an entity in return for regular interest…

Q: Accounting Pam purchases $1,000,000 par of Sun's bonds for $1,030,000 on January 2, 2017, and that…

A: Interest carried on the bond = 1,030,000 - 1,000,000= 30,000/1000,000                        3% this…

Q: Gentiles Company is indebted to Israelites under a P1,000,000, 9% three-year bonds dated December…

A: Bonds are one of the type of long-term debt generally issued by companies. The issuer of bonds pays…

Q: The December 31, 2017, balance sheet of Ming Inc. included 12% bonds with a face amount of $107…

A: Solution: Journal entry is as under: Particulars Debit Credit Bond payable 107000000   Loss…

Q: Do not use Ai

A: Amortization Table:DateInterest received               (a)Interest revenue…

Q: On July 1, 2002, Durable Company purchased Rose Corporation 10-year, 12% bonds with face value of…

A: Given information, Face Value = P300,000 Purchase Price = P324,000 Interest rate on bonds = 12%

Q: MSG Corporation issued $100,000 of 3-year, 6% bonds outstanding on December 31, 2020 for $106,000.…

A: When issue price is greater than the face value then it means the bonds are issued at a premium. The…

Q: Blossom Company purchased $1180000 of 8%, 5-year bonds from Carlin, Inc. on January 1, 2021, with…

A: Bonds refers to the units of corporate debts which are issued by companies and also securitized…

Q: Wildhorse Company purchased $1290000 of 8%, 5-year bonds from Blossom, Inc. on January 1, 2021, with…

A: Workings: Using the effective interest method:

Q: re on January 1, 2032, but were redeemable at 101 any time after December 31, 2025. Interest was…

A: A bond is a fixed-income security that reflects an investor's debt to a borrower.

Q: Pharoah Company purchased $3200000 of 9%, 5-year bonds from Wildhorse, Inc. on January 1, 2021, with…

A: The question is based on the concept of Financial Accounting.

Q: On December 1, 2017, Cone Company issued its 10%, $550,000 face value bonds for $640,000, plus…

A: Bond redemption is the process of repaying the principal amount of a bond to its bondholders upon…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.