Suspect Company Issued $600,000 of 9 percent first mortgage bonds on January 1, 20X1, at 103. The bonds mature in 20 years andpay Interest semiannually on January 1 and July 1. Prime Corporation purchased $400,000 of Suspect's bonds from the originalpurchaser on December 31, 20X5, for $397,000. Prime owns 60 percent of Suspect's voting common stock.Required:a. Prepare the worksheet consolidation entry or entries needed to remove the effects of the Intercorporate bond ownership Inpreparing consolidated financial statements for 20X5. (If no entry is required for a transaction/event, select "No Journal entryrequired" In the first account fleld. Do not round your intermediate calculations. Round your final answers to nearest whole dollar.)NoABNoAEvent1B2Event12Bonds payablePremium on bonds payableInvestment in Suspect Company bondsGain on bond retirementInterest payableAnswer is complete but not entirely correct.AccountsInterest receivableb. Prepare the worksheet consolidation entry or entries needed to remove the effects of the Intercorporate bond ownership Inpreparing consolidated financial statements for 20X6. (If no entry is required for a transaction/event, select "No Journal entryrequired" in the first account fleld. Do not round your intermediate calculations. Round your final answers to nearest whole dollar.)Interest payableAnswer is not complete.Bonds payablePremium on bonds payableInterest incomeInvestment in Suspect Company bondsInterest receivableAccountsDebit400,0009,00018,000Debit400,0008,400Credit18,000397,0009,00018,000Credit6,750 x397,20018,000

Corporate Bonds -Corporate bonds are obligations that corporations issue to both public and private…

b. Prepare the worksheet consolidation entry or entries needed to remove the effects of the Intercorporate bond ownership in preparing consolidated financial statements for 20X6. (If no entry is required for a transaction/event, select "No lournal entry

b. Prepare the worksheet consolidation entry or entries needed to remove the effects of the Intercorporate bond ownership in preparing consolidated financial statements for 20X6. (If no entry is required for a transaction/event, select "No lournal entry

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 5P: Bats Corporation issued 800,000 of 12% face value bonds for 851,705.70. The bonds were dated and...

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Refer to the information in RE13-5. Assume that on June 30, Aggie received interest on the Smith Corporation bonds. Prepare the June 30 journal entries to record the receipt of the interest. On April 30, 2019, Aggie Corporation purchased Smith Corporation 10%, 5-years bonds with a face value of 12,000 at par plus four months of accrued interest. Prepare the April 30 journal entry to record the purchase of these available-for-sale securities.
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Pretzel Corporation owns 60 percent of Stick Corporation's voting shares. On January 1, 20X2, Pretzel Corporation sold $150,000 par value, 6 percent first mortgage bonds to Stick for $156,000. The bonds mature in 10 years and pay interest semiannually on January 1 and July 1. Note: Assume using straight-line amortization of bond discount or premium. Required: a. Prepare the journal entries for 20X2 for Stick related to its ownership of Pretzel's bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 Record the investment in the bonds of Pretzel Corporation. Note: Enter debits before credits. Date January 1, 20X2 General Journal Debit Credit Record entry View general journal Clear entry > b. Prepare the journal entries for 20X2 for Pretzel related to the bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account…
On March 1, Year 1, 5M Corp. issued $50,000, 6%, 10-year bonds payable at 98 plus accrued interest. The bonds are dated February 1, Year 1, and mature on February 1, Year 11. The bonds pay cash interest semiannually on February 1 and August 1. Calculate the selling price of the bonds (including interest). Select one: a. $49,000 b. $49,250 c. $50,500 d. $50,250
Suspect Company Issued $600,000 of 9 percent first mortgage bonds on January 1, 20X1, at 103. The bonds mature in 20 years and pay Interest semiannually on January 1 and July 1. Prime Corporation purchased $400,000 of Suspect's bonds from the original purchaser on December 31, 20X5, for $397,000. Prime owns 60 percent of Suspect's voting common stock. Note: Assume using straight-line amortization of bond discount or premium. Required: a. Prepare the worksheet consolidation entry or entries needed to remove the effects of the Intercorporate bond ownership In preparing consolidated financial statements for 20X5. (If no entry is required for a transaction/event, select "No journal entry required" In the first account field.) Answer is complete and correct. No Event A 1 Bonds payable Premium on bonds payable Accounts Debit Credit 400,000 9,000 Investment in Suspect Company bonds Gain on bond retirement 397,000 12,000 B 2 Interest payable Interest receivable 18,000 18,000 b. Prepare the…