a
Introduction:
Retirement of bonds: When a constrictive retirement takes place, the consolidated income statement for the year shows the profit or loss on retirement, but not reported in the consolidated
The entries in the books of P related to investment in S for the year 20X4.
b
Introduction:
Retirement of bonds: When a constrictive retirement takes place, the consolidated income statement for the year shows the profit or loss on retirement, but not reported in the consolidated balance sheet, if the company purchases the bond of a related company are acquired from an unrelated party at a price equal to the value reported, the elimination entries required to be prepared in the consolidated financial statement.
The entries in books of P on investment in to S company bonds
c
Introduction:
Retirement of bonds: When a constrictive retirement takes place, the consolidated income statement for the year shows the profit or loss on retirement, but not reported in the consolidated balance sheet, if the company purchases the bond of a related company are acquired from an unrelated party at a price equal to the value reported, the elimination entries required to be prepared in the consolidated financial statement.
The entries in books of S related to its bonds payable
d
Introduction:
Retirement of bonds: When a constrictive retirement takes place, the consolidated income statement for the year shows the profit or loss on retirement, but not reported in the consolidated balance sheet, if the company purchases the bond of a related company are acquired from an unrelated party at a price equal to the value reported, the elimination entries required to be prepared in the consolidated financial statement.
The entries elimination entries to complete consolidation worksheet for 20X4.
e
Introduction:
Retirement of bonds: When a constrictive retirement takes place, the consolidated income statement for the year shows the profit or loss on retirement, but not reported in the consolidated balance sheet, if the company purchases the bond of a related company are acquired from an unrelated party at a price equal to the value reported, the elimination entries required to be prepared in the consolidated financial statement.
The preparation of consolidation worksheet for 20X4
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Chapter 8 Solutions
ADVANCED FIN. ACCT. LL W/ACCESS>CUSTOM<
- Question Content Area Bond (held - to - maturity) investments Journalize the entries to record the following selected held - to - maturity investment transactions for Marr Products: If an amount box does not require an entry, leave it blank. Question Content Area a. Purchased for cash $180,000 of Hotline Inc. 5% bonds at 100 plus accrued interest of $1,500. blankAccountDebitCredit blank Question Content Area b. Received first semiannual interest payment. blankAccountDebitCredit blank Question Content Area c. Sold $90,000 of the bonds at 102 plus accrued interest of $750. blankAccountDebitCredit blank Question Content Area d. Received face value of remaining bonds at their maturity. blankAccountDebitCredit blankarrow_forwardPlease do not give image formatarrow_forwardEntries for Investments in Bonds, Interest, and Sale of Bonds Torres Investments acquired $222,800 of Murphy Corp., 4% bonds at their face amount on October 1, Year 1. The bonds pay interest on October 1 and April 1. On April 1, Year 2, Torres sold $87,600 of Murphy Corp. bonds at 102. Journalize the entries to record the following: Do not round interim calculations. Round final answers to nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. a. The initial acquisition of the Murphy Corp. bonds on October 1, Year 1. Year 1, Oct. 1 fill in the blank f0a494fa0fb5f8c_2 fill in the blank f0a494fa0fb5f8c_4 b. The adjusting entry for three months of accrued interest earned on the Murphy Corp. bonds on December 31, Year 1. Year 1, Dec. 31 fill in the blank bdcee6fd5f8a063_2 fill in the blank bdcee6fd5f8a063_4 c. The receipt of semiannual interest on April 1, Year 2. Year 2,…arrow_forward
- ntries for bond (held-to-maturity) investments Bula Investments acquired $240,000 of Effenstein Corp., 8% bonds at their face amount on October 1, 20Y1. The bonds pay interest on October 1 and April 1. On April 1, 20Y2, Bula sold $90,000 of Effenstein Corp. bonds at 102. Journalize the entries to record the following selected transactions: Do not round interim calculations. Round final answers to nearest dollar. If an amount box does not require an entry, leave it blank.arrow_forwardDo not give answer in imagearrow_forwardHow do I journalize the bonds?arrow_forward
- Entries for bond (held-to-maturity) investments Bula Investments acquired $264,000 of Effenstein Corp., 9% bonds at their face amount on October 1, 20Y1. The bonds pay interest on October 1 and April 1. On April 1, 20Y2, Bula sold $118,000 of Effenstein Corp. bonds at 104. Journalize the entries to record the following selected transactions: a. The initial acquisition of the Effenstein Corp. bonds on October 1, 20Y1. b. The adjusting entry for 3 months of accrued interest earned on the Effenstein Corp. bonds on December 31, 20Y1. c. The receipt of semiannual interest on April 1, 20Y2. d. The sale of $118,000 of Effenstein Corp. bonds on April 1, 20Y2, at 104. e. The receipt of the face value of the remaining bonds at their maturity on October 1, 20Y8.arrow_forward1. At what amount should RED initially record its investment in Orange Company? 2. At what amount should RED initially record its investment in Yellow Corporation? 3. How much gain or (loss) should be recognized on the sale of Yellow bonds?arrow_forwardNeed help finding question Darrow_forward
- May 1 and November 1. On November 1, Demopoulos Company sold Journalize the entries to record the following: If an amount box does not require an entry, leave it blank. a. The initial acquisition of the bonds on May 1. May 1 b. The semiannual interest received on November 1. Nov. 1 c. The sale of the bonds on November 1. Nov. 1 000 d. The accrual of $1,855 interest on December 31. Dec. 31arrow_forwardUse the following information on a company's investments in debt securities to answer the following question. The company's accounting year ends December 31. Investment Date of Acquisition 9/20/23 $38,000 Colt Compan y bonds Cost Fair Value Date Sold Selling 12/31/23 Price $37,000 2/10/24 $42,000 Dana Compan y bonds 10/2/23 14,000 14,200 1/17/24 13,000 If the above investments are categorized as available-for-sale securities, what is the net effect on 2024 other comprehensive income? Select one: a. $ 800 increase b. $0 c. $3,800 increase d. $ 800 decreasearrow_forwardEntries for bond (held-to-maturity) investments Bula Investments acquired $240,000 of Effenstein Corp., 8% bonds at their face amount on October 1, 20Y1. The bonds pay interest on October 1 and April 1. On April 1, 20Y2, Bula sold $90,000 of Effenstein Corp. bonds at 102. Journalize the entries to record the following selected transactions: Do not round interim calculations. Round final answers to nearest dollar. If an amount box does not require an entry, leave it blank. Question Content Area a. The initial acquisition of the Effenstein Corp. bonds on October 1, 20Y1. 20Y1, Oct. 1 - Select - - Select - - Select - - Select - Question Content Area b. The adjusting entry for 3 months of accrued interest earned on the Effenstein Corp. bonds on December 31, 20Y1. 20Y1, Dec. 31 - Select - - Select - - Select - - Select - Question Content Area c. The receipt of semiannual interest on April 1, 20Y2. 20Y2, Apr. 1 - Select - - Select - - Select - - Select - - Select - - Select…arrow_forward
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