Concept explainers
a.
Introduction: Consolidation is the process of combining financial results of various subsidiaries with the financial results of parent company. It is used only when parent company holds more than 50% of share of subsidiary company.Bond is an instrument issued by the companies to fulfil their need of large amount of borrowings. It is the instrument of indebtedness where issuer is obliged to pay the interest on it.When a company buyback its bonds for certain purpose, then it is called bond retirement. Loss or gain in bond retirement is difference between the carrying amount of both the companies i.e. issuing company and purchasing company.
The
b.
Introduction: Consolidation is the process of combining financial results of various subsidiaries with the financial results of parent company. It is used only when parent company holds more than 50% of share of subsidiary company
Loss or gain on bond retirement: When a company buyback its bonds for certain purpose, then it is called bond retirement. Loss or gain in bond retirement is difference between the carrying amount of both the companies i.e. issuing company and purchasing company.
The amount of income assigned to non-controlling interest if net income of S company is $20000.
c.
Introduction: Consolidation is the process of combining financial results of various subsidiaries with the financial results of parent company. It is used only when parent company holds more than 50% of share of subsidiary company
Loss or gain on bond retirement: When a company buyback its bonds for certain purpose, then it is called bond retirement. Loss or gain in bond retirement is difference between the carrying amount of both the companies i.e. issuing company and purchasing company.
The journal entries needed to remove the effect of intercompany bond transactions for 20X9.
Want to see the full answer?
Check out a sample textbook solution
Chapter 8 Solutions
EBK ADVANCED FINANCIAL ACCOUNTING
- A retail company purchased new display fixtures for $28,000. Old store equipment was sold for $2,500. A marketable security investment was sold for $45,000. Treasury stock was repurchased for $18,000, and dividends were paid to shareholders in the amount of $30,000. The company issued new bonds resulting in proceeds of $75,000. Calculate the net cash flow from investing activities.arrow_forwardAcme Corporation purchases machinery for $78,000 with a salvage value of $8,000 and an expected useful life of 7 years. What is the annual depreciation expense using the straight-line method? Helparrow_forwardI need help with this general accounting question using standard accounting techniques.arrow_forward
- If blurr image please comment i will write values. please dont Solve with incorrect values otherwise unhelpful.arrow_forwardJones Co. had $61,500 in sales during 2025. During the year, Jones purchased $18,400 in inventory. The company began the year with $4,100 in inventory and ended the year with $1,300 in inventory. In addition, during 2025, Jones received a prepayment of $2,500, which was correctly classified as unearned revenue. What was Jones's gross profit during 2025? A. $38,000 B. $40,300 C. $39,600 D. $42,100 E. None of the abovearrow_forwardI need the correct answer to this financial accounting problem using the standard accounting approach.arrow_forward
- Quine Industries has fixed costs of $600,000 and variable costs are 60% of the selling price. To realize profits of $250,000 from sales of 500,000 units, the selling price per unit: 1. Must be $2.60 2. Must be $3.50 3. Must be $4.25 4. Is indeterminablearrow_forwardAccounting with solutionarrow_forwardCan you solve this general accounting question with accurate accounting calculations?arrow_forward
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Financial AccountingAccountingISBN:9781305088436Author:Carl Warren, Jim Reeve, Jonathan DuchacPublisher:Cengage Learning
College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,