Chapter 8, Problem 8.22BP

1.

To determine

Introduction: Bond is known as a fixed income interest that shows a loan made by an investor to a borrower. Gain on bond retirement is profit earned on retirement or Maturity of bonds.

To prepare: Computation of gain or loss on retirement of bond

2.

To determine

Introduction: Eliminating Entries- In preparing the consolidated financial statement, sums owned by one company to the other company within the group should be eliminated, for intercompany transactions, for this parent companies eliminates the effect of intercompany transactions by making eliminating entries.

To prepare: The journal entries for each transaction.

3.

To determine

Introduction: Retained earnings is that part of total net profit which is left with the company or business enterprise after paying dividend to its shareholder including preference share holder and equity shareholder both. Or It can be stated as cumulative profits of a company after deducting dividends.

To prepare: To calculate retained earnings.