All the effects related to indebtedness of the intercompany are eliminated when the intercompany sale of bonds takes place between affiliates for the purpose of consolidated financial statements because the company has no right to report an investment in its own bonds or bond liability. Therefore, the balances from each subsidiary of the parent company are considered when the consolidated financial statements are prepared. The journal entries recorded by P in books during 20X4 using cost method.

Question

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Answer 1

Question

Chapter 8, Problem 8.30BP

a

To determine

Introduction: All the effects related to indebtedness of the intercompany are eliminated when the intercompany sale of bonds takes place between affiliates for the purpose of consolidated financial statements because the company has no right to report an investment in its own bonds or bond liability. Therefore, the balances from each subsidiary of the parent company are considered when the consolidated financial statements are prepared.

The journal entries recorded by P in books during 20X4 using cost method.

b

To determine

Introduction: All the effects related to indebtedness of the intercompany are eliminated when the intercompany sale of bonds takes place between affiliates for the purpose of consolidated financial statements because the company has no right to report an investment in its own bonds or bond liability. Therefore, the balances from each subsidiary of the parent company are considered when the consolidated financial statements are prepared.

The elimination entries needed to complete consolidation worksheet using cost method.

c

To determine

Introduction: All the effects related to indebtedness of the intercompany are eliminated when the intercompany sale of bonds takes place between affiliates for the purpose of consolidated financial statements because the company has no right to report an investment in its own bonds or bond liability. Therefore, the balances from each subsidiary of the parent company are considered when the consolidated financial statements are prepared.

A complete three part consolidation worksheet as of December 31, 20X4.

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13.)

In the preparation of the 20x4 consolidated income statement, depreciation expense will be: A. Debited for 5,000 in eliminating entries B. Credited for 5,000 in eliminating entries C. Debited for 13,000 in eliminating entries D. Credited for 13,000 in eliminating entries

Manji

Answer 2

Question

Chapter 8, Problem 8.30BP

a

To determine

Introduction: All the effects related to indebtedness of the intercompany are eliminated when the intercompany sale of bonds takes place between affiliates for the purpose of consolidated financial statements because the company has no right to report an investment in its own bonds or bond liability. Therefore, the balances from each subsidiary of the parent company are considered when the consolidated financial statements are prepared.

The journal entries recorded by P in books during 20X4 using cost method.

b

To determine

Introduction: All the effects related to indebtedness of the intercompany are eliminated when the intercompany sale of bonds takes place between affiliates for the purpose of consolidated financial statements because the company has no right to report an investment in its own bonds or bond liability. Therefore, the balances from each subsidiary of the parent company are considered when the consolidated financial statements are prepared.

The elimination entries needed to complete consolidation worksheet using cost method.

c

To determine

Introduction: All the effects related to indebtedness of the intercompany are eliminated when the intercompany sale of bonds takes place between affiliates for the purpose of consolidated financial statements because the company has no right to report an investment in its own bonds or bond liability. Therefore, the balances from each subsidiary of the parent company are considered when the consolidated financial statements are prepared.

A complete three part consolidation worksheet as of December 31, 20X4.

Expert Solution & Answer

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Answer 3

Question

Chapter 8, Problem 8.30BP

a

To determine

Introduction: All the effects related to indebtedness of the intercompany are eliminated when the intercompany sale of bonds takes place between affiliates for the purpose of consolidated financial statements because the company has no right to report an investment in its own bonds or bond liability. Therefore, the balances from each subsidiary of the parent company are considered when the consolidated financial statements are prepared.

The journal entries recorded by P in books during 20X4 using cost method.

b

To determine

Introduction: All the effects related to indebtedness of the intercompany are eliminated when the intercompany sale of bonds takes place between affiliates for the purpose of consolidated financial statements because the company has no right to report an investment in its own bonds or bond liability. Therefore, the balances from each subsidiary of the parent company are considered when the consolidated financial statements are prepared.

The elimination entries needed to complete consolidation worksheet using cost method.

c

To determine

Introduction: All the effects related to indebtedness of the intercompany are eliminated when the intercompany sale of bonds takes place between affiliates for the purpose of consolidated financial statements because the company has no right to report an investment in its own bonds or bond liability. Therefore, the balances from each subsidiary of the parent company are considered when the consolidated financial statements are prepared.

A complete three part consolidation worksheet as of December 31, 20X4.

Expert Solution & Answer

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Answer 4

Question

Chapter 8, Problem 8.30BP

a

To determine

Introduction: All the effects related to indebtedness of the intercompany are eliminated when the intercompany sale of bonds takes place between affiliates for the purpose of consolidated financial statements because the company has no right to report an investment in its own bonds or bond liability. Therefore, the balances from each subsidiary of the parent company are considered when the consolidated financial statements are prepared.

The journal entries recorded by P in books during 20X4 using cost method.

b

To determine

Introduction: All the effects related to indebtedness of the intercompany are eliminated when the intercompany sale of bonds takes place between affiliates for the purpose of consolidated financial statements because the company has no right to report an investment in its own bonds or bond liability. Therefore, the balances from each subsidiary of the parent company are considered when the consolidated financial statements are prepared.

The elimination entries needed to complete consolidation worksheet using cost method.

c

To determine

Introduction: All the effects related to indebtedness of the intercompany are eliminated when the intercompany sale of bonds takes place between affiliates for the purpose of consolidated financial statements because the company has no right to report an investment in its own bonds or bond liability. Therefore, the balances from each subsidiary of the parent company are considered when the consolidated financial statements are prepared.

A complete three part consolidation worksheet as of December 31, 20X4.

Expert Solution & Answer

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Answer 5

Chapter 8, Problem 8.30BP

a

To determine

Introduction: All the effects related to indebtedness of the intercompany are eliminated when the intercompany sale of bonds takes place between affiliates for the purpose of consolidated financial statements because the company has no right to report an investment in its own bonds or bond liability. Therefore, the balances from each subsidiary of the parent company are considered when the consolidated financial statements are prepared.

The journal entries recorded by P in books during 20X4 using cost method.

b

To determine

Introduction: All the effects related to indebtedness of the intercompany are eliminated when the intercompany sale of bonds takes place between affiliates for the purpose of consolidated financial statements because the company has no right to report an investment in its own bonds or bond liability. Therefore, the balances from each subsidiary of the parent company are considered when the consolidated financial statements are prepared.

The elimination entries needed to complete consolidation worksheet using cost method.

c

To determine

Introduction: All the effects related to indebtedness of the intercompany are eliminated when the intercompany sale of bonds takes place between affiliates for the purpose of consolidated financial statements because the company has no right to report an investment in its own bonds or bond liability. Therefore, the balances from each subsidiary of the parent company are considered when the consolidated financial statements are prepared.

A complete three part consolidation worksheet as of December 31, 20X4.

Answer 6

Chapter 8, Problem 8.30BP

a

To determine

Introduction: All the effects related to indebtedness of the intercompany are eliminated when the intercompany sale of bonds takes place between affiliates for the purpose of consolidated financial statements because the company has no right to report an investment in its own bonds or bond liability. Therefore, the balances from each subsidiary of the parent company are considered when the consolidated financial statements are prepared.

The journal entries recorded by P in books during 20X4 using cost method.

Answer 7

Chapter 8, Problem 8.30BP

a

To determine

Introduction: All the effects related to indebtedness of the intercompany are eliminated when the intercompany sale of bonds takes place between affiliates for the purpose of consolidated financial statements because the company has no right to report an investment in its own bonds or bond liability. Therefore, the balances from each subsidiary of the parent company are considered when the consolidated financial statements are prepared.

The journal entries recorded by P in books during 20X4 using cost method.

Answer 8

b

To determine

Introduction: All the effects related to indebtedness of the intercompany are eliminated when the intercompany sale of bonds takes place between affiliates for the purpose of consolidated financial statements because the company has no right to report an investment in its own bonds or bond liability. Therefore, the balances from each subsidiary of the parent company are considered when the consolidated financial statements are prepared.

The elimination entries needed to complete consolidation worksheet using cost method.

Answer 9

b

To determine

Introduction: All the effects related to indebtedness of the intercompany are eliminated when the intercompany sale of bonds takes place between affiliates for the purpose of consolidated financial statements because the company has no right to report an investment in its own bonds or bond liability. Therefore, the balances from each subsidiary of the parent company are considered when the consolidated financial statements are prepared.

The elimination entries needed to complete consolidation worksheet using cost method.

Answer 10

c

To determine

Introduction: All the effects related to indebtedness of the intercompany are eliminated when the intercompany sale of bonds takes place between affiliates for the purpose of consolidated financial statements because the company has no right to report an investment in its own bonds or bond liability. Therefore, the balances from each subsidiary of the parent company are considered when the consolidated financial statements are prepared.

A complete three part consolidation worksheet as of December 31, 20X4.

Answer 11

c

To determine

Introduction: All the effects related to indebtedness of the intercompany are eliminated when the intercompany sale of bonds takes place between affiliates for the purpose of consolidated financial statements because the company has no right to report an investment in its own bonds or bond liability. Therefore, the balances from each subsidiary of the parent company are considered when the consolidated financial statements are prepared.

A complete three part consolidation worksheet as of December 31, 20X4.

Answer 12

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Answer 13

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Answer 14

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Answer 15

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

Solution Summary: The author explains that the effects related to indebtedness of the intercompany are eliminated when the sale of bonds takes place between affiliates for the purpose of consolidated financial statements.

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Chapter 8 Solutions