SUB is a 90% owned subsidiary of PAR. SUB issued $100,000 of 8%, 5-year bonds for $96,110 on 1/1/2015, when the market rate was 9%. Annual interest is paid on 12/31/. PAR purchased the bonds on 1/1/2018, for $103,667, when the market rate was 6%. Both companies use the effective interest method to amortize the premium/discount on the bonds.   1/ The net adjustment needed to consolidated income in the consolidation process for 2019 is: (hint: complete the subsidiary income distribution schedule and calculate the surplus of a gain or loss on retirement and the interest adjustment) a. 2,622 increase b. 2,805 increase c. 5,427 decrease d. 2,714 increase   2/ The elimination and adjustment process for 2018 consolidated statements include a. Credit Investment in Subsidiary Bond 101,887 b. Credit Gain 3,667 c. Credit Discount 1,760 d. Credit Bond Payable 100,000

Q: Carlton Company is an 80%- owned subsidiary ofMirage Company. On January 1, 2015, Carlton sold…

A: 1.

Q: Cardinal Company is an 80%- owned subsidiary of Dove Corporation. Cardinal Company issued $100,000…

A:

Q: Annual cash interest of 8 percent ($84,000) was to be paid on this debt. The bonds were issued at a…

A: Consolidation entry refers to the process of grouping the financial entries of a parent company with…

Q: Paulina, Incorporated, owns 90 percent of Southport Company. On January 1, 2021, Paulina acquires…

A: 1. Determination of gain or loss to be reported in consolidated income statement for 2020 Given that…

Q: Opus, Incorporated, owns 90 percent of Bloom Company. On December 31, 2017, Opus acquires half of…

A: a. Computation of the amount of gain or loss from the retirement of this debt should be reported on…

Q: Saratoga Company owns 80% of the outstanding common stock of Windsor Company. On May 1, 2017,…

A: Introduction:   Consolidation is a process in which financial statements of subsidiary is merged…

Q: Sycamore will record interest revenue in 2022 of?

A: Interest = 92278*0.10/2 - 100000*0.08/2 =P614

Q: On October 1, 2021, POGI Company purchased 4,000 of the P1,000 face amount, 10% bonds of GANDA…

A: Bonds are defined as the units of the corporate debt, which are issued through the companies as well…

Q: On January 1, 20X1, ABC acquired 5,000 of XYZ’s bonds denominated at P1,000, 12% interest rate, 5…

A: On 01.01.20X1, ABC acquired XYZ bonds = 5000 bonds Par value per bond = P1000 Total bonds acquired =…

Q: Paulina, Incorporated, owns 80 percent of Southport Company. On January 1, 2021, Paulina acquires…

A: Intra-entity transactions are those transactions that take place within the companies. It is used to…

Q: SUB is an 80% owned subsidiary of PAR. SUB issued $100,000 of 8%, 10-year bonds for $95,000 on…

A: Consolidated financial statements are a set of financial statements prepared for a group company…

Q: On January 1, 20x1, ABC Co. acquired 10%, P1,000,000 bonds for P827,135. The bonds mature on…

A: So we will use amortization cost method

Q: On June 1, 2022, GHI Co. acquired P3,000,000 bonds of Z Company at 102 plus transaction costs of…

A: Bonds are a type of long-term debt that is issued by the company to capital. The bonds come with a…

Q: Presented below are three independent situations: a. IKJUN Co. purchased 12% bonds having a maturity…

A: a. Account title and explanation Debit Credit 12% Bonds A/c  $107,581   To Bank A/c…

Q: Garfield Company purchased, on January 1, 2017, as a held-to-maturity investment, $80,000 of the 9%,…

A: Workings: Held to maturity bond  = $80000 Purchased at $74086. It means purchased at discount.…

Q: Company P purchased $100,000 of subsidiary Company S’s bonds for $96,000 on January 1, 2015, when…

A:

Q: Sandhill Company purchased $3400000 of 8%, 5-year bonds from Blue, Inc. on January 1, 2021, with…

A: Given, Sales price of bond is $3,490,000 Carrying value of bond is $3,497,440   The computation is…

Q: Assuming that both parties use the straight-line method, what consolidation entry would be required…

A: 1) Year Book Value at the beginning of the year Effective Interest rate Cash Interest…

Q: Several years ago Brant, Inc., sold $950,000 in bonds to the public. Annual cash interest of 8…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: Several years ago Brant, Inc., sold $780,000 in bonds to the public. Annual cash interest of 9…

A: Prepare Consolidation Entry B to account for these bonds on December 31, 2019

Q: Several years ago Brant, Inc., sold $800,000 in bonds to the public. Annual cash interest of 8…

A: Journal Entry - It is record of every business transactions whether it is economic or non economic…

Q: ABC Company , a holder of P1,000,000 XYZ Company bonds, collected the interest due on March 31, year…

A: Non controlling interest = 25%

Q: On January 1, 2022, Kindness Corp. issued 3,000 of its 5-year, P1,000 face value, 12% bonds dated…

A: The bonds are the long-term liabilities. When a company issues bonds and offers a coupon rate that…

Q: On January 1, 2022, BTS Company purchased 3,000, P1,000 face value term bons with a stated rate of…

A:

Q: Carow Corporation purchased on January 1, 2017, as a held-to-maturity investment, $60,000 of the 8%,…

A: Interest received (semiannually) = Face value of bonds x rate of interest x 6/12 months = $60,000 x…

Q: Landis Co. purchased P500,000 of 8%, 5-year bonds (DI@FVTOCI) from Ritter, Inc. on January 1, 2022,…

A: Profits on readily available-for-sale securities with easily determined fair values should be…

Q: Blossom Company purchased $1300000 of 8%, 5-year bonds from Carlin, Inc. on January 1, 2021, with…

A: When the sale price of bonds is greater than the book value of the bonds, then it would result in…

Q: What are the entries that reflect ABC Corporation’s transactions for the years 2015 and 2016?

A: cash payment = 1000000*111.5% + 1000000*15%*2/12 = 1140000   loss = 1200000-1110401= 9599

Q: Darcy Company is an 80%-owned subsidiary of Kraco Industries. Darcy Company issued 10-year, 8% bonds…

A:

Q: Gentiles Company is indebted to Israelites under a P1,000,000, 9% three-year bonds dated December…

A: Bonds are one of the type of long-term debt generally issued by companies. The issuer of bonds pays…

Q: Blossom Company purchased $1180000 of 8%, 5-year bonds from Carlin, Inc. on January 1, 2021, with…

A: Bonds refers to the units of corporate debts which are issued by companies and also securitized…

Q: At April 1, 2021, Candy Company sold the Sugar bonds for $3,090,000. Assuming Candy Company has a…

A: Any change in the value of Available-for-Sale Debt Securities are recorded an gain or loss…

Q: Wildhorse Company purchased $1290000 of 8%, 5-year bonds from Blossom, Inc. on January 1, 2021, with…

A: Workings: Using the effective interest method:

Q: Linco Industries is a 90%- owned subsidiary of Sharp Incorporated. On January 1, 2015, Linco issued…

A: Prepare eliminations and adjustments as explained: Result:

Q: Pharoah Company purchased $3200000 of 9%, 5-year bonds from Wildhorse, Inc. on January 1, 2021, with…

A: The question is based on the concept of Financial Accounting.

Q: Company S is a 100%-owned subsidiary of Company P. On January 1, 2016, Company S had $100,000 of 8%…

A: Given: Price of the bond = $ 100,000 Bond rate = 8 % Amount of unamortized discount = $ 5,000

Q: SUB is a 90% owned subsidiary of PAR. SUB issued $100,000 of 8%, 5-year bonds for $96,110 on…

A: Consolidated financial statements are a set of financial statements prepared for a group company…

Q: Several years ago Brant, Inc., sold $850,000 in bonds to the public. Annual cash interest of 9…

A: a.

Q: On October 1, 2021, Valorant Company purchased a debt security having a face value of P3,000,000…

A: In case of investment  in debt security  is measured  at FVTOCI ,initially  the investment  should…

Q: Since its 100% acquisition of Dancer Corporation stock on December 31, 2012, Jones Corporation has…

A: 1.

Q: On January 1, 2015, when the prevailing effective rate on similar instruments was at 7%, INC Company…

A: Bond Valuation Bond Valuation which can be made either par value or in discount or in premium as…

Q: On January 1, 2014, Dunbar Corporation, an 85%-owned subsidiary of Garfield Industries, received…

A:

Q: Franklin Corporation owns 90 percent of the outstanding voting stock of Georgia Company. On January…

A:

Q: Several years ago Brant, Inc., sold $900,000 in bonds to the public. Annual cash interest of 9…

A: Consolidated financial statements: When an investor company holds above 50% in the outstanding stock…

Q: Cullumber Company purchased $3050000 of 9%, 5-year bonds from Vaughn, Inc. on January 1, 2021, with…

A: Bonds can be define as an instrument which most commonly used by corporate entities and government…

Q: Tanner-UNF Corporation acquired as a long-term investment $240 million of 6% bonds, dated July 1, on…

A: 1.The investments, being recorded under the fair value method, the accounting for the…

Q: On July 31, 2010, Honedge Co. issued P1,000,000 of 10%, 15 year bonds at par and used a portion of…

A: Issuance of Bonds Bond is considered to be the debt instrument which are utilized by the companies…

Q: Highlight, Inc., owns all outstanding stock of Kiort Corporation. The two companies report the…

A:

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.