a
Introduction: When intercompany sale of bonds occurs, all intercompany obligations must be eliminated, and consolidated entity is viewed as a single company. All transactions related to intercompany obligations are eliminated including investment in bonds, the bonds payable of any unamortized discount or premium, the interest income or expenses on the bonds and any accrued interest receivable or payable. When a constrictive retirement occurs, the gain or loss on retirement is reported in consolidated income statement for the period, but not reported in consolidated
The entries in the books of M related to investment in T for the year 20X4.
b
Introduction: When Intercompany sale of bonds occurs, all intercompany obligations must be eliminated, and consolidated entity is viewed as a single company, all transactions related to intercompany obligations are eliminated, including investment in bonds, the bonds payable any unamortized discount or premium, the interest income or expenses on the bonds and any accrued interest receivable or payable. When a constrictive retirement occurs, the gain or loss on retirement is reported in consolidated income statement for the period, but not reported in consolidated balance sheet. If bond of an affiliate purchased from an unrelated party at a price equal to the liability reported, the transaction has to be eliminated using an elimination entries before the preparation of consolidated financial statement.
The entries in books of Mon investment in to T company bonds
c
Introduction: When Intercompany sale of bonds occurs, all intercompany obligations must be eliminated, and consolidated entity is viewed as a single company, all transactions related to intercompany obligations are eliminated, including investment in bonds, the bonds payable any unamortized discount or premium, the interest income or expenses on the bonds and any accrued interest receivable or payable. When a constrictive retirement occurs, the gain or loss on retirement is reported in consolidated income statement for the period, but not reported in consolidated balance sheet. If bond of an affiliate purchased from an unrelated party at a price equal to the liability reported, the transaction has to be eliminated using an elimination entries before the preparation of consolidated financial statement.
The entries in books of T related to its bonds payable
d
Introduction: When Intercompany sale of bonds occurs, all intercompany obligations must be eliminated, and consolidated entity is viewed as a single company, all transactions related to intercompany obligations are eliminated, including investment in bonds, the bonds payable any unamortized discount or premium, the interest income or expenses on the bonds and any accrued interest receivable or payable. When a constrictive retirement occurs, the gain or loss on retirement is reported in consolidated income statement for the period, but not reported in consolidated balance sheet. If bond of an affiliate purchased from an unrelated party at a price equal to the liability reported, the transaction has to be eliminated using an elimination entries before the preparation of consolidated financial statement.
The entries elimination entries to complete consolidation worksheet for 20X4.
e
Introduction: When Intercompany sale of bonds occurs, all intercompany obligations must be eliminated, and consolidated entity is viewed as a single company, all transactions related to intercompany obligations are eliminated, including investment in bonds, the bonds payable any unamortized discount or premium, the interest income or expenses on the bonds and any accrued interest receivable or payable. When a constrictive retirement occurs, the gain or loss on retirement is reported in consolidated income statement for the period, but not reported in consolidated balance sheet. If bond of an affiliate purchased from an unrelated party at a price equal to the liability reported, the transaction has to be eliminated using an elimination entries before the preparation of consolidated financial statement.
The preparation of consolidation worksheet for 20X4
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Chapter 8 Solutions
LOOSE-LEAF Advanced Financial Accounting with Connect
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