Suspect Company issued $600,000 of 9 percent first mortgage bonds on January 1, 20X1, at 103. The bonds mature in 20 years andpay interest semiannually on January 1 and July 1. Prime Corporation purchased $400,000 of Suspect's bonds from the originalpurchaser on January 1, 20X5, for $396,800. Prime owns 60 percent of Suspect's voting common stock.Note: Assume using straight-line amortization of bond discount or premium.Required:a. Prepare the worksheet consolidation entry or entries needed to remove the effects of the intercorporate bond ownership inpreparing consolidated financial statements for 20X5.b. Prepare the worksheet consolidation entry or entries needed to remove the effects of the intercorporate bond ownership inpreparing consolidated financial statements for 20X6.Complete this question by entering your answers in the tabs below.Required A Required BPrepare the worksheet consolidation entry or entries needed to remove the effects of the intercorporate bond ownership in preparingconsolidated financial statements for 20X5.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)view transaction listConsolidationWorksheet EntriesABRecord the entry to eliminate the effects of the intercompany ownership inSuspect bonds for 20X5.Note: Enter debits before credits.Event1Record entryAccountsClear entry< Required ADebitCreditview consolidation entriesRequired B >>

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Answered: Suspect Company issued pay interest…

Business

Accounting

Suspect Company issued pay interest semiannually

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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The following selected transactions are from Ohlm Company. Year 1 December 16 Accepted a $10,800, 60-day, 8% note in granting Danny Todd a time extension on his past-due account receivable. December 31 Made an adjusting entry to record the accrued interest on the Todd note. Year 2 February 14 Received Todd's payment of principal and interest on the note dated December 16. March 2 Accepted a $6,100, 8%, 90-day note in granting a time extension on the past-due account receivable from Midnight Company March 17 Accepted a $2,400, 30-day, 7% note in granting Ava Privet a time extension on her past-due account receivable. April 16 Privet dishonored her note. May 31 Midnight Company dishonored its note. August 7 Accepted a $7,440, 90-day, 10% note in granting a time extension on the past-due account receivable of Mulan Company September 3 Accepted a $2,100, 60-day, 10% note in granting Noah Carson a time extension on his past-due account receivable. November 2 Received payment of principal…
On August 1, a $60,000, 7%, 3-year installment note payable is issued by a company. The note requires equal payments of principal plus accrued interest of $22,863.10. The entry to record the first payment on July 31 would include: a) Debit to Notes Payable of $22,863.10b) Debit to Interest Expense of $4,200.00.c) Debit to Cash of $22,863.10.d) Credit to Notes Payable of $22,863.10e) Credit to Cash $18,663.10
On 9/1, the Knight's Stop issues a new part to a customer to replace a defective part the customer purchased the previous year. The new part was issued under the two-year warranty offered on all parts sold by company. On 9/1, Knight's Stop would debit which account for the journal entry? O Accounts Receivable O Inventory O Warranty Payable O Accounts Payable O Warranty Expense O. Cash O Current Portion Long-term Debt ASUS f4 f5 E3 f6 f7 f9 f8 团 f10 f11 & 4. 9. T. Y U F G H 08 因 96 R
Year 1 Dec. 16 Accepted a $10,800, 60-day, 8% note in granting Danny Todd a time extension on his past-due account receivable. 31 Made an adjusting entry to record the accrued interest on the Todd note.
On the first day of the fiscal year, a company issues $89,000, 6%, five-year installment notes that have annual payments of $21,128. The first note payment consists of $5,340 of interest and $15,788 of principal repayment. a. Journalize the entry to record the issuance of the installment notes. b. Journalize the first annual note payment
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On April 12, Hong Company agrees to accept a 60-day, 10%, $5,200 note from Indigo Company to extend the due date on an overdue account payable. What is the journal entry made by Indigo Company to record the transaction? Multiple Choice
Journalizing Installment Notes On the first day of the fiscal year, a company issues $26,000, 12%, three-year installment notes that have annual payments of $10,825. The first note payment consists of $3,120 of interest and $7,705 of principal repayment. a. Journalize the entry to record the issuance of the installment notes. If an amount box does not require an entry, leave it blank. Cash V Notes Payable Feedback Check My Work The cash payment is the same in each year. The interest and principal repayment, however, change each year. This is because the carrying amount (book value) of the note decreases each year as principal is repaid, which decreases the interest. b. Journalize the first annual note payment. If an amount box does not require an entry, leave it blank. Interest Expense Notes Payable Cash Feedback Check My Work
Journalize the first annual interest payment on December 31, 20X1.
1. 2. On January 1, 2025, Pina Company issued $132,000 of 7%, 10-year bonds at par. Interest is payable quarterly on April 1, July 1, October 1, and January 1. On June 1, 2025, Grouper Company issued $84,000 of 11%, 10-year bonds dated January 1 at par plus accrued interest. Interest is payable semiannually on July 1 and January 1. For each of these two independent situations, prepare journal entries to record the following.
On 9/1, the Knight's Stop issues a new part to a customer to replace a defective part the customer purchased the previous year. The new part was issued under the two-year warranty offered on all parts sold by company. On 9/1, Knight's Stop would debit which account for the journal entry? O Accounts Receivable O Inventory O Warranty Payable O Accounts Payable O Warranty Expense O Cash O Current Portion Long-term Debt ASUS f4 f5 E3 f6 f7 f8 f9 f11 f10 团 & 4 5 6 7 8. Y. U 因图 %24