Long term bonds are issued by companies to feed their long term fund requirements. These bonds are retired at their maturity. The bonds may be retired at par or premium which may result in the gain or loss on retirement of the bonds. To indicate: The timing of recording the gain/loss on retirement of the bonds in the consolidated income statement.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 8, Problem 8.1Q

To determine

Concept Introduction:

Long term bonds are issued by companies to feed their long term fund requirements. These bonds are retired at their maturity. The bonds may be retired at par or premium which may result in the gain or loss on retirement of the bonds.

To indicate:The timing of recording the gain/loss on retirement of the bonds in the consolidated income statement.

Expert Solution & Answer

Explanation of Solution

While consolidating the parent company accounts with the accounts of its subsidiaries, the effects of intercompany transactions are required to be adjusted to get the consolidated balance.

The gain or loss on retirement of the bonds of the parent company is recorded at the time of retirement of bonds and gain/loss on retirement of the subsidiary company’s bonds is recorded at the time of consolidation in the consolidated income statement.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Solve this Accounting question

Max Building Products, a manufacturer of concrete blocks, buys raw sand on credit on May 8. It processes the sand to make concrete blocks on May 12 and pays cash for the raw sand on May20. On June 1, it sells the concrete blocks to a hardware distributor, and on June 18, it receives a cash payment for this sale. What is the length of the cash cycle in this case?

Please help me solve this general accounting problem with the correct financial process.

Answer 2

Question

Chapter 8, Problem 8.1Q

To determine

Concept Introduction:

Long term bonds are issued by companies to feed their long term fund requirements. These bonds are retired at their maturity. The bonds may be retired at par or premium which may result in the gain or loss on retirement of the bonds.

To indicate:The timing of recording the gain/loss on retirement of the bonds in the consolidated income statement.

Expert Solution & Answer

Explanation of Solution

While consolidating the parent company accounts with the accounts of its subsidiaries, the effects of intercompany transactions are required to be adjusted to get the consolidated balance.

The gain or loss on retirement of the bonds of the parent company is recorded at the time of retirement of bonds and gain/loss on retirement of the subsidiary company’s bonds is recorded at the time of consolidation in the consolidated income statement.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 8, Problem 8.1Q

To determine

Concept Introduction:

Long term bonds are issued by companies to feed their long term fund requirements. These bonds are retired at their maturity. The bonds may be retired at par or premium which may result in the gain or loss on retirement of the bonds.

To indicate:The timing of recording the gain/loss on retirement of the bonds in the consolidated income statement.

Expert Solution & Answer

Explanation of Solution

While consolidating the parent company accounts with the accounts of its subsidiaries, the effects of intercompany transactions are required to be adjusted to get the consolidated balance.

The gain or loss on retirement of the bonds of the parent company is recorded at the time of retirement of bonds and gain/loss on retirement of the subsidiary company’s bonds is recorded at the time of consolidation in the consolidated income statement.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 8, Problem 8.1Q

To determine

Concept Introduction:

Long term bonds are issued by companies to feed their long term fund requirements. These bonds are retired at their maturity. The bonds may be retired at par or premium which may result in the gain or loss on retirement of the bonds.

To indicate:The timing of recording the gain/loss on retirement of the bonds in the consolidated income statement.

Expert Solution & Answer

Explanation of Solution

While consolidating the parent company accounts with the accounts of its subsidiaries, the effects of intercompany transactions are required to be adjusted to get the consolidated balance.

The gain or loss on retirement of the bonds of the parent company is recorded at the time of retirement of bonds and gain/loss on retirement of the subsidiary company’s bonds is recorded at the time of consolidation in the consolidated income statement.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 8, Problem 8.1Q

To determine

Concept Introduction:

Long term bonds are issued by companies to feed their long term fund requirements. These bonds are retired at their maturity. The bonds may be retired at par or premium which may result in the gain or loss on retirement of the bonds.

To indicate:The timing of recording the gain/loss on retirement of the bonds in the consolidated income statement.

Expert Solution & Answer

Explanation of Solution

While consolidating the parent company accounts with the accounts of its subsidiaries, the effects of intercompany transactions are required to be adjusted to get the consolidated balance.

The gain or loss on retirement of the bonds of the parent company is recorded at the time of retirement of bonds and gain/loss on retirement of the subsidiary company’s bonds is recorded at the time of consolidation in the consolidated income statement.

Answer 6

Chapter 8, Problem 8.1Q

To determine

Concept Introduction:

Long term bonds are issued by companies to feed their long term fund requirements. These bonds are retired at their maturity. The bonds may be retired at par or premium which may result in the gain or loss on retirement of the bonds.

To indicate:The timing of recording the gain/loss on retirement of the bonds in the consolidated income statement.

Expert Solution & Answer

Explanation of Solution

While consolidating the parent company accounts with the accounts of its subsidiaries, the effects of intercompany transactions are required to be adjusted to get the consolidated balance.

The gain or loss on retirement of the bonds of the parent company is recorded at the time of retirement of bonds and gain/loss on retirement of the subsidiary company’s bonds is recorded at the time of consolidation in the consolidated income statement.

Answer 7

Chapter 8, Problem 8.1Q

To determine

Concept Introduction:

Long term bonds are issued by companies to feed their long term fund requirements. These bonds are retired at their maturity. The bonds may be retired at par or premium which may result in the gain or loss on retirement of the bonds.

To indicate:The timing of recording the gain/loss on retirement of the bonds in the consolidated income statement.

Answer 8

Expert Solution & Answer

Explanation of Solution

While consolidating the parent company accounts with the accounts of its subsidiaries, the effects of intercompany transactions are required to be adjusted to get the consolidated balance.

The gain or loss on retirement of the bonds of the parent company is recorded at the time of retirement of bonds and gain/loss on retirement of the subsidiary company’s bonds is recorded at the time of consolidation in the consolidated income statement.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

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

Explanation of Solution

Want to see more full solutions like this?

Chapter 8 Solutions