When the intercompany sale of bonds occurs, all receivables and payables and liabilities between consolidated companies must be eliminated, including the purchase or sale of affiliates bonds and any unrecognized discount or premium. The elimination is carried out mainly before drafting of consolidation worksheet, which helps in combining the balances in individual books of affiliates and the preparation of consolidated financial statements. The entries in the books of P related to investment in T for the year 20X2.

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Answer 1

Question

Chapter 8, Problem 8.14P

a

To determine

Concept introduction: When the intercompany sale of bonds occurs, all receivables and payables and liabilities between consolidated companies must be eliminated, including the purchase or sale of affiliates bonds and any unrecognized discount or premium. The elimination is carried out mainly before drafting of consolidation worksheet, which helps in combining the balances in individual books of affiliates and the preparation of consolidated financial statements.

The entries in the books of P related to investment in T for the year 20X2.

b

To determine

Concept introduction: When the intercompany sale of bonds occurs, all receivables and payables and liabilities between consolidated companies must be eliminated, including the purchase or sale of affiliates bonds and any unrecognized discount or premium. The elimination is carried out mainly before drafting of consolidation worksheet, which helps in combining the balances in individual books of affiliates and the preparation of consolidated financial statements.

The entries in books of P related to bond payable for 20X2.

c

To determine

Concept introduction: When the intercompany sale of bonds occurs, all receivables and payables and liabilities between consolidated companies must be eliminated, including the purchase or sale of affiliates bonds and any unrecognized discount or premium. The elimination is carried out mainly before drafting of consolidation worksheet, which helps in combining the balances in individual books of affiliates and the preparation of consolidated financial statements.

The entries in books of T related to investment in P’s bonds for 20X2.

d

To determine

Concept introduction: When the intercompany sale of bonds occurs, all receivables and payables and liabilities between consolidated companies must be eliminated, including the purchase or sale of affiliates bonds and any unrecognized discount or premium. The elimination is carried out mainly before drafting of consolidation worksheet, which helps in combining the balances in individual books of affiliates and the preparation of consolidated financial statements.

The entries elimination entries to complete consolidation worksheet for 20X2.

e

To determine

Concept introduction: When the intercompany sale of bonds occurs, all receivables and payables and liabilities between consolidated companies must be eliminated, including the purchase or sale of affiliates bonds and any unrecognized discount or premium. The elimination is carried out mainly before drafting of consolidation worksheet, which helps in combining the balances in individual books of affiliates and the preparation of consolidated financial statements.

The preparation of consolidation worksheet for 20X2

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A company has decided to purchase equipment, needing to borrow $100,000 from its local bank to make the purchase. The bank gives the company two options: (a) 60-month installment note with 4% interest or (b) 120-month installment note with 8% interest. Lenders often charge a higher interest rate for longer-term loans to compensate for additional risk of lending for a longer time period. Record $100,000 cash received from the issuance of the 120-month installment note with 8% interest.Record $100,000 cash received from the issuance of the 120-month installment note with 8% interest. Select the options to display a 120-month installment note with 12% interest. How much of the principal amount is due after the 60th payment?

Answer 2

Question

Chapter 8, Problem 8.14P

a

To determine

Concept introduction: When the intercompany sale of bonds occurs, all receivables and payables and liabilities between consolidated companies must be eliminated, including the purchase or sale of affiliates bonds and any unrecognized discount or premium. The elimination is carried out mainly before drafting of consolidation worksheet, which helps in combining the balances in individual books of affiliates and the preparation of consolidated financial statements.

The entries in the books of P related to investment in T for the year 20X2.

b

To determine

Concept introduction: When the intercompany sale of bonds occurs, all receivables and payables and liabilities between consolidated companies must be eliminated, including the purchase or sale of affiliates bonds and any unrecognized discount or premium. The elimination is carried out mainly before drafting of consolidation worksheet, which helps in combining the balances in individual books of affiliates and the preparation of consolidated financial statements.

The entries in books of P related to bond payable for 20X2.

c

To determine

Concept introduction: When the intercompany sale of bonds occurs, all receivables and payables and liabilities between consolidated companies must be eliminated, including the purchase or sale of affiliates bonds and any unrecognized discount or premium. The elimination is carried out mainly before drafting of consolidation worksheet, which helps in combining the balances in individual books of affiliates and the preparation of consolidated financial statements.

The entries in books of T related to investment in P’s bonds for 20X2.

d

To determine

Concept introduction: When the intercompany sale of bonds occurs, all receivables and payables and liabilities between consolidated companies must be eliminated, including the purchase or sale of affiliates bonds and any unrecognized discount or premium. The elimination is carried out mainly before drafting of consolidation worksheet, which helps in combining the balances in individual books of affiliates and the preparation of consolidated financial statements.

The entries elimination entries to complete consolidation worksheet for 20X2.

e

To determine

Concept introduction: When the intercompany sale of bonds occurs, all receivables and payables and liabilities between consolidated companies must be eliminated, including the purchase or sale of affiliates bonds and any unrecognized discount or premium. The elimination is carried out mainly before drafting of consolidation worksheet, which helps in combining the balances in individual books of affiliates and the preparation of consolidated financial statements.

The preparation of consolidation worksheet for 20X2

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Answer 3

Question

Chapter 8, Problem 8.14P

a

To determine

Concept introduction: When the intercompany sale of bonds occurs, all receivables and payables and liabilities between consolidated companies must be eliminated, including the purchase or sale of affiliates bonds and any unrecognized discount or premium. The elimination is carried out mainly before drafting of consolidation worksheet, which helps in combining the balances in individual books of affiliates and the preparation of consolidated financial statements.

The entries in the books of P related to investment in T for the year 20X2.

b

To determine

Concept introduction: When the intercompany sale of bonds occurs, all receivables and payables and liabilities between consolidated companies must be eliminated, including the purchase or sale of affiliates bonds and any unrecognized discount or premium. The elimination is carried out mainly before drafting of consolidation worksheet, which helps in combining the balances in individual books of affiliates and the preparation of consolidated financial statements.

The entries in books of P related to bond payable for 20X2.

c

To determine

Concept introduction: When the intercompany sale of bonds occurs, all receivables and payables and liabilities between consolidated companies must be eliminated, including the purchase or sale of affiliates bonds and any unrecognized discount or premium. The elimination is carried out mainly before drafting of consolidation worksheet, which helps in combining the balances in individual books of affiliates and the preparation of consolidated financial statements.

The entries in books of T related to investment in P’s bonds for 20X2.

d

To determine

Concept introduction: When the intercompany sale of bonds occurs, all receivables and payables and liabilities between consolidated companies must be eliminated, including the purchase or sale of affiliates bonds and any unrecognized discount or premium. The elimination is carried out mainly before drafting of consolidation worksheet, which helps in combining the balances in individual books of affiliates and the preparation of consolidated financial statements.

The entries elimination entries to complete consolidation worksheet for 20X2.

e

To determine

Concept introduction: When the intercompany sale of bonds occurs, all receivables and payables and liabilities between consolidated companies must be eliminated, including the purchase or sale of affiliates bonds and any unrecognized discount or premium. The elimination is carried out mainly before drafting of consolidation worksheet, which helps in combining the balances in individual books of affiliates and the preparation of consolidated financial statements.

The preparation of consolidation worksheet for 20X2

Expert Solution & Answer

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Answer 4

Question

Chapter 8, Problem 8.14P

a

To determine

Concept introduction: When the intercompany sale of bonds occurs, all receivables and payables and liabilities between consolidated companies must be eliminated, including the purchase or sale of affiliates bonds and any unrecognized discount or premium. The elimination is carried out mainly before drafting of consolidation worksheet, which helps in combining the balances in individual books of affiliates and the preparation of consolidated financial statements.

The entries in the books of P related to investment in T for the year 20X2.

b

To determine

Concept introduction: When the intercompany sale of bonds occurs, all receivables and payables and liabilities between consolidated companies must be eliminated, including the purchase or sale of affiliates bonds and any unrecognized discount or premium. The elimination is carried out mainly before drafting of consolidation worksheet, which helps in combining the balances in individual books of affiliates and the preparation of consolidated financial statements.

The entries in books of P related to bond payable for 20X2.

c

To determine

Concept introduction: When the intercompany sale of bonds occurs, all receivables and payables and liabilities between consolidated companies must be eliminated, including the purchase or sale of affiliates bonds and any unrecognized discount or premium. The elimination is carried out mainly before drafting of consolidation worksheet, which helps in combining the balances in individual books of affiliates and the preparation of consolidated financial statements.

The entries in books of T related to investment in P’s bonds for 20X2.

d

To determine

Concept introduction: When the intercompany sale of bonds occurs, all receivables and payables and liabilities between consolidated companies must be eliminated, including the purchase or sale of affiliates bonds and any unrecognized discount or premium. The elimination is carried out mainly before drafting of consolidation worksheet, which helps in combining the balances in individual books of affiliates and the preparation of consolidated financial statements.

The entries elimination entries to complete consolidation worksheet for 20X2.

e

To determine

Concept introduction: When the intercompany sale of bonds occurs, all receivables and payables and liabilities between consolidated companies must be eliminated, including the purchase or sale of affiliates bonds and any unrecognized discount or premium. The elimination is carried out mainly before drafting of consolidation worksheet, which helps in combining the balances in individual books of affiliates and the preparation of consolidated financial statements.

The preparation of consolidation worksheet for 20X2

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Answer 5

Chapter 8, Problem 8.14P

a

To determine

Concept introduction: When the intercompany sale of bonds occurs, all receivables and payables and liabilities between consolidated companies must be eliminated, including the purchase or sale of affiliates bonds and any unrecognized discount or premium. The elimination is carried out mainly before drafting of consolidation worksheet, which helps in combining the balances in individual books of affiliates and the preparation of consolidated financial statements.

The entries in the books of P related to investment in T for the year 20X2.

b

To determine

Concept introduction: When the intercompany sale of bonds occurs, all receivables and payables and liabilities between consolidated companies must be eliminated, including the purchase or sale of affiliates bonds and any unrecognized discount or premium. The elimination is carried out mainly before drafting of consolidation worksheet, which helps in combining the balances in individual books of affiliates and the preparation of consolidated financial statements.

The entries in books of P related to bond payable for 20X2.

c

To determine

Concept introduction: When the intercompany sale of bonds occurs, all receivables and payables and liabilities between consolidated companies must be eliminated, including the purchase or sale of affiliates bonds and any unrecognized discount or premium. The elimination is carried out mainly before drafting of consolidation worksheet, which helps in combining the balances in individual books of affiliates and the preparation of consolidated financial statements.

The entries in books of T related to investment in P’s bonds for 20X2.

d

To determine

Concept introduction: When the intercompany sale of bonds occurs, all receivables and payables and liabilities between consolidated companies must be eliminated, including the purchase or sale of affiliates bonds and any unrecognized discount or premium. The elimination is carried out mainly before drafting of consolidation worksheet, which helps in combining the balances in individual books of affiliates and the preparation of consolidated financial statements.

The entries elimination entries to complete consolidation worksheet for 20X2.

e

To determine

Concept introduction: When the intercompany sale of bonds occurs, all receivables and payables and liabilities between consolidated companies must be eliminated, including the purchase or sale of affiliates bonds and any unrecognized discount or premium. The elimination is carried out mainly before drafting of consolidation worksheet, which helps in combining the balances in individual books of affiliates and the preparation of consolidated financial statements.

The preparation of consolidation worksheet for 20X2

Answer 6

Chapter 8, Problem 8.14P

a

To determine

Concept introduction: When the intercompany sale of bonds occurs, all receivables and payables and liabilities between consolidated companies must be eliminated, including the purchase or sale of affiliates bonds and any unrecognized discount or premium. The elimination is carried out mainly before drafting of consolidation worksheet, which helps in combining the balances in individual books of affiliates and the preparation of consolidated financial statements.

The entries in the books of P related to investment in T for the year 20X2.

Answer 7

Chapter 8, Problem 8.14P

a

To determine

Concept introduction: When the intercompany sale of bonds occurs, all receivables and payables and liabilities between consolidated companies must be eliminated, including the purchase or sale of affiliates bonds and any unrecognized discount or premium. The elimination is carried out mainly before drafting of consolidation worksheet, which helps in combining the balances in individual books of affiliates and the preparation of consolidated financial statements.

The entries in the books of P related to investment in T for the year 20X2.

Answer 8

b

To determine

Concept introduction: When the intercompany sale of bonds occurs, all receivables and payables and liabilities between consolidated companies must be eliminated, including the purchase or sale of affiliates bonds and any unrecognized discount or premium. The elimination is carried out mainly before drafting of consolidation worksheet, which helps in combining the balances in individual books of affiliates and the preparation of consolidated financial statements.

The entries in books of P related to bond payable for 20X2.

Answer 9

b

To determine

Concept introduction: When the intercompany sale of bonds occurs, all receivables and payables and liabilities between consolidated companies must be eliminated, including the purchase or sale of affiliates bonds and any unrecognized discount or premium. The elimination is carried out mainly before drafting of consolidation worksheet, which helps in combining the balances in individual books of affiliates and the preparation of consolidated financial statements.

The entries in books of P related to bond payable for 20X2.

Answer 10

c

To determine

Concept introduction: When the intercompany sale of bonds occurs, all receivables and payables and liabilities between consolidated companies must be eliminated, including the purchase or sale of affiliates bonds and any unrecognized discount or premium. The elimination is carried out mainly before drafting of consolidation worksheet, which helps in combining the balances in individual books of affiliates and the preparation of consolidated financial statements.

The entries in books of T related to investment in P’s bonds for 20X2.

Answer 11

c

To determine

Concept introduction: When the intercompany sale of bonds occurs, all receivables and payables and liabilities between consolidated companies must be eliminated, including the purchase or sale of affiliates bonds and any unrecognized discount or premium. The elimination is carried out mainly before drafting of consolidation worksheet, which helps in combining the balances in individual books of affiliates and the preparation of consolidated financial statements.

The entries in books of T related to investment in P’s bonds for 20X2.

Answer 12

d

To determine

Concept introduction: When the intercompany sale of bonds occurs, all receivables and payables and liabilities between consolidated companies must be eliminated, including the purchase or sale of affiliates bonds and any unrecognized discount or premium. The elimination is carried out mainly before drafting of consolidation worksheet, which helps in combining the balances in individual books of affiliates and the preparation of consolidated financial statements.

The entries elimination entries to complete consolidation worksheet for 20X2.

Answer 13

d

To determine

Concept introduction: When the intercompany sale of bonds occurs, all receivables and payables and liabilities between consolidated companies must be eliminated, including the purchase or sale of affiliates bonds and any unrecognized discount or premium. The elimination is carried out mainly before drafting of consolidation worksheet, which helps in combining the balances in individual books of affiliates and the preparation of consolidated financial statements.

The entries elimination entries to complete consolidation worksheet for 20X2.

Answer 14

e

To determine

Concept introduction: When the intercompany sale of bonds occurs, all receivables and payables and liabilities between consolidated companies must be eliminated, including the purchase or sale of affiliates bonds and any unrecognized discount or premium. The elimination is carried out mainly before drafting of consolidation worksheet, which helps in combining the balances in individual books of affiliates and the preparation of consolidated financial statements.

The preparation of consolidation worksheet for 20X2

Answer 15

e

To determine

Concept introduction: When the intercompany sale of bonds occurs, all receivables and payables and liabilities between consolidated companies must be eliminated, including the purchase or sale of affiliates bonds and any unrecognized discount or premium. The elimination is carried out mainly before drafting of consolidation worksheet, which helps in combining the balances in individual books of affiliates and the preparation of consolidated financial statements.

The preparation of consolidation worksheet for 20X2

Answer 16

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Answer 17

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Answer 18

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Answer 19

Ch. 8 - Prob. 8.1Q Ch. 8 - What is meant by a constructive bond retirement in...Ch. 8 - Prob. 8.3Q Ch. 8 - Prob. 8.4Q Ch. 8 - When a parent company sells land to a subsidiary...Ch. 8 - Prob. 8.7Q Ch. 8 - Prob. 8.8Q Ch. 8 - Prob. 8.9Q Ch. 8 - Prob. 8.10Q Ch. 8 - Prob. 8.11Q

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