a
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
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
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
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
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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Chapter 8 Solutions
EBK ADVANCED FINANCIAL ACCOUNTING
- BlueTech Corporation's balance sheet reports Assets of $8,400, Contributed Capital of $4,500, and Retained Earnings of $600. What is the total amount of liabilities on the balance sheet? a. $12,900 b. $3,300 c. $3,600 d. $8,100 e. None of the abovearrow_forwardA sandwich shop sells its sandwiches for $7.50 each. The shop incurs a daily fixed cost of $500, which includes rent and salaries. The variable cost per sandwich is $3.50. Based on past demand, the shop expects to sell 200 sandwiches a day. What is the daily profit for the sandwich shop?arrow_forwardQ-Tip Devices is evaluating changes to its working capital strategy to optimize its cash conversion cycle. Q-Tip's sales last year were $150,000 (all on credit), and it earned a net profit of 8%. Its inventory turnover was 6.25 times during the year, and its Days Sales Outstanding (DSO) was 28 days. The annual cost of goods sold was $135,000. The firm had fixed assets totaling $30,000. Q-Tip's payables deferral period is 36 days. Assume 365 days in a year for calculations. Do not round intermediate steps. Calculate Q-Tip's cash conversion cycle. Round your final answer to two decimal places.arrow_forward
- provide solution of this question with financial accounting methodarrow_forwardSubject: Financial Accounting-The Banner Income Fund's average daily total assets were $100 million for the year just completed. Its stock purchases for the year were $20 million, while its sales were $12.5 million. What was its turnover?arrow_forwardWhat is the total gross profit margin for the month?arrow_forward
Financial Reporting, Financial Statement Analysis...FinanceISBN:9781285190907Author:James M. Wahlen, Stephen P. Baginski, Mark BradshawPublisher:Cengage Learning