Consolidation entry: The basic consolidation entry removes the investment in the parent company stock account and subsidiary’s stockholders' equity accounts. Consolidation is the process of combining the financials of a subsidiary with the financials of the parent company. This is typically done when a parent holds more than 50 percent of shares of another entity. The given companies S or P is parent company.

Question

Want to see the full answer?

Answer 1

Question

Chapter 8, Problem 8.17AP

a.

To determine

Consolidation entry: The basic consolidation entry removes the investment in the parent company stock account and subsidiary’s stockholders' equity accounts. Consolidation is the process of combining the financials of a subsidiary with the financials of the parent company. This is typically done when a parent holds more than 50 percent of shares of another entity.

The given companies S or P is parent company.

b.

To determine

Consolidation entry: The basic consolidation entry removes the investment in the parent company stock account and subsidiary’s stockholders' equity accounts. Consolidation is the process of combining the financials of a subsidiary with the financials of the parent company. This is typically done when a parent holds more than 50 percent of shares of another entity.

Percentage of owner ship parent P holds in subsidiary S

c.

To determine

Consolidation entry: The basic consolidation entry removes the investment in the parent company stock account and subsidiary’s stockholders' equity accounts. Consolidation is the process of combining the financials of a subsidiary with the financials of the parent company. This is typically done when a parent holds more than 50 percent of shares of another entity.

Amount to be reported without consolidating entry when net income for 20X7 is $70,000.

d

To determine

Consolidation entry: The basic consolidation entry removes the investment in the parent company stock account and subsidiary’s stockholders' equity accounts. Consolidation is the process of combining the financials of a subsidiary with the financials of the parent company. This is typically done when a parent holds more than 50 percent of shares of another entity.

Increase or decrease in income to the non-controlling interest reported in 20X7 as a result of preceding consolidating entry

e

To determine

Consolidation entry: The basic consolidation entry removes the investment in the parent company stock account and subsidiary’s stockholders' equity accounts. Consolidation is the process of combining the financials of a subsidiary with the financials of the parent company. This is typically done when a parent holds more than 50 percent of shares of another entity.

Preparation of elimination entry for consolidation worksheet on December 31 20X8.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Saturn Corporation issued $300,000 par value 10-year bonds at 107 on January 1, 20X3, which Star Corporation purchased. On July 1, 20X7, Pluto Corporation purchased $120,000 face value of Saturn bonds from Star. The bonds pay 12 percent interest annually on December 31. The preparation of consolidated financial statements for Saturn and Pluto at December 31, 20X9, required the following consolidation entry: Bonds Payable Premium on Bonds Payable Interest Income Investment in Saturn Corporation Bonds Interest Expense Investment in Saturn Corporation Stock NCT in NA of Saturn Corp. Multiple Choice Based on the information given above, what amount of gain or loss on bond retirement is included in the 20X7 consolidated income $6,600 $4,800 16.000 120,000 2,520 14,760 $5,400 118,920 13,560 3,120 1,680

Satum Corporation issued $300,000 par value 10-year bonds at 107 on January 1, 20X3, which Star Corporation purchased On July 1, 20X7, Pluto Corporation purchased $120,000 face value of Saturn bonds from Star. The bonds pay 12 percent interest annually on December 31 The preparation of consolidated financial statements for Saturn and Pluto at December 31, 20X9, required the following consolidation entry Prentum on Bonds Payable Interest Income Investment in Saturn Corporation Bonds Interest Expense Investment in Saturn Corporation Stock MCI in Net Assets of Saturn Corporation 120,000 2,520 14,760 118,920 13,560 3,120 1,680 on the information given above, what percentage of the subsidiary's ownership does the parent company hold?

Consolidation adjustment necessary when affiliate's debt is acquired from non-affiliate Assume that a Parent company owns 65 percent of its Subsidiary. The parent company uses the equity method to account for its Equity investment. On January 1, 2015, the Parent (face) 10 year, 10 percent bonds payable for a $100,000 premium. The bonds pay interest on December 31 of each year. On January 1, 2018, amortization. In preparing the consolidated financial statements for the year ended December 31, 2019, what consolidating entry adjustment is necessary the Subsidiary $0 + Please answer all parts of the question. $2,000,000 use straight-line company issued to an unaffiliated company acquired 30 percent of the bonds for $572,000. Both companies for the beginning-of-year Equity investment balance?

Answer 2

Question

Chapter 8, Problem 8.17AP

a.

To determine

Consolidation entry: The basic consolidation entry removes the investment in the parent company stock account and subsidiary’s stockholders' equity accounts. Consolidation is the process of combining the financials of a subsidiary with the financials of the parent company. This is typically done when a parent holds more than 50 percent of shares of another entity.

The given companies S or P is parent company.

b.

To determine

Consolidation entry: The basic consolidation entry removes the investment in the parent company stock account and subsidiary’s stockholders' equity accounts. Consolidation is the process of combining the financials of a subsidiary with the financials of the parent company. This is typically done when a parent holds more than 50 percent of shares of another entity.

Percentage of owner ship parent P holds in subsidiary S

c.

To determine

Consolidation entry: The basic consolidation entry removes the investment in the parent company stock account and subsidiary’s stockholders' equity accounts. Consolidation is the process of combining the financials of a subsidiary with the financials of the parent company. This is typically done when a parent holds more than 50 percent of shares of another entity.

Amount to be reported without consolidating entry when net income for 20X7 is $70,000.

d

To determine

Consolidation entry: The basic consolidation entry removes the investment in the parent company stock account and subsidiary’s stockholders' equity accounts. Consolidation is the process of combining the financials of a subsidiary with the financials of the parent company. This is typically done when a parent holds more than 50 percent of shares of another entity.

Increase or decrease in income to the non-controlling interest reported in 20X7 as a result of preceding consolidating entry

e

To determine

Consolidation entry: The basic consolidation entry removes the investment in the parent company stock account and subsidiary’s stockholders' equity accounts. Consolidation is the process of combining the financials of a subsidiary with the financials of the parent company. This is typically done when a parent holds more than 50 percent of shares of another entity.

Preparation of elimination entry for consolidation worksheet on December 31 20X8.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 8, Problem 8.17AP

a.

To determine

Consolidation entry: The basic consolidation entry removes the investment in the parent company stock account and subsidiary’s stockholders' equity accounts. Consolidation is the process of combining the financials of a subsidiary with the financials of the parent company. This is typically done when a parent holds more than 50 percent of shares of another entity.

The given companies S or P is parent company.

b.

To determine

Consolidation entry: The basic consolidation entry removes the investment in the parent company stock account and subsidiary’s stockholders' equity accounts. Consolidation is the process of combining the financials of a subsidiary with the financials of the parent company. This is typically done when a parent holds more than 50 percent of shares of another entity.

Percentage of owner ship parent P holds in subsidiary S

c.

To determine

Consolidation entry: The basic consolidation entry removes the investment in the parent company stock account and subsidiary’s stockholders' equity accounts. Consolidation is the process of combining the financials of a subsidiary with the financials of the parent company. This is typically done when a parent holds more than 50 percent of shares of another entity.

Amount to be reported without consolidating entry when net income for 20X7 is $70,000.

d

To determine

Consolidation entry: The basic consolidation entry removes the investment in the parent company stock account and subsidiary’s stockholders' equity accounts. Consolidation is the process of combining the financials of a subsidiary with the financials of the parent company. This is typically done when a parent holds more than 50 percent of shares of another entity.

Increase or decrease in income to the non-controlling interest reported in 20X7 as a result of preceding consolidating entry

e

To determine

Consolidation entry: The basic consolidation entry removes the investment in the parent company stock account and subsidiary’s stockholders' equity accounts. Consolidation is the process of combining the financials of a subsidiary with the financials of the parent company. This is typically done when a parent holds more than 50 percent of shares of another entity.

Preparation of elimination entry for consolidation worksheet on December 31 20X8.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 8, Problem 8.17AP

a.

To determine

Consolidation entry: The basic consolidation entry removes the investment in the parent company stock account and subsidiary’s stockholders' equity accounts. Consolidation is the process of combining the financials of a subsidiary with the financials of the parent company. This is typically done when a parent holds more than 50 percent of shares of another entity.

The given companies S or P is parent company.

b.

To determine

Consolidation entry: The basic consolidation entry removes the investment in the parent company stock account and subsidiary’s stockholders' equity accounts. Consolidation is the process of combining the financials of a subsidiary with the financials of the parent company. This is typically done when a parent holds more than 50 percent of shares of another entity.

Percentage of owner ship parent P holds in subsidiary S

c.

To determine

Consolidation entry: The basic consolidation entry removes the investment in the parent company stock account and subsidiary’s stockholders' equity accounts. Consolidation is the process of combining the financials of a subsidiary with the financials of the parent company. This is typically done when a parent holds more than 50 percent of shares of another entity.

Amount to be reported without consolidating entry when net income for 20X7 is $70,000.

d

To determine

Consolidation entry: The basic consolidation entry removes the investment in the parent company stock account and subsidiary’s stockholders' equity accounts. Consolidation is the process of combining the financials of a subsidiary with the financials of the parent company. This is typically done when a parent holds more than 50 percent of shares of another entity.

Increase or decrease in income to the non-controlling interest reported in 20X7 as a result of preceding consolidating entry

e

To determine

Consolidation entry: The basic consolidation entry removes the investment in the parent company stock account and subsidiary’s stockholders' equity accounts. Consolidation is the process of combining the financials of a subsidiary with the financials of the parent company. This is typically done when a parent holds more than 50 percent of shares of another entity.

Preparation of elimination entry for consolidation worksheet on December 31 20X8.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 8, Problem 8.17AP

a.

To determine

Consolidation entry: The basic consolidation entry removes the investment in the parent company stock account and subsidiary’s stockholders' equity accounts. Consolidation is the process of combining the financials of a subsidiary with the financials of the parent company. This is typically done when a parent holds more than 50 percent of shares of another entity.

The given companies S or P is parent company.

b.

To determine

Consolidation entry: The basic consolidation entry removes the investment in the parent company stock account and subsidiary’s stockholders' equity accounts. Consolidation is the process of combining the financials of a subsidiary with the financials of the parent company. This is typically done when a parent holds more than 50 percent of shares of another entity.

Percentage of owner ship parent P holds in subsidiary S

c.

To determine

Consolidation entry: The basic consolidation entry removes the investment in the parent company stock account and subsidiary’s stockholders' equity accounts. Consolidation is the process of combining the financials of a subsidiary with the financials of the parent company. This is typically done when a parent holds more than 50 percent of shares of another entity.

Amount to be reported without consolidating entry when net income for 20X7 is $70,000.

d

To determine

Consolidation entry: The basic consolidation entry removes the investment in the parent company stock account and subsidiary’s stockholders' equity accounts. Consolidation is the process of combining the financials of a subsidiary with the financials of the parent company. This is typically done when a parent holds more than 50 percent of shares of another entity.

Increase or decrease in income to the non-controlling interest reported in 20X7 as a result of preceding consolidating entry

e

To determine

Consolidation entry: The basic consolidation entry removes the investment in the parent company stock account and subsidiary’s stockholders' equity accounts. Consolidation is the process of combining the financials of a subsidiary with the financials of the parent company. This is typically done when a parent holds more than 50 percent of shares of another entity.

Preparation of elimination entry for consolidation worksheet on December 31 20X8.

Answer 6

Chapter 8, Problem 8.17AP

a.

To determine

Consolidation entry: The basic consolidation entry removes the investment in the parent company stock account and subsidiary’s stockholders' equity accounts. Consolidation is the process of combining the financials of a subsidiary with the financials of the parent company. This is typically done when a parent holds more than 50 percent of shares of another entity.

The given companies S or P is parent company.

Answer 7

Chapter 8, Problem 8.17AP

a.

To determine

Consolidation entry: The basic consolidation entry removes the investment in the parent company stock account and subsidiary’s stockholders' equity accounts. Consolidation is the process of combining the financials of a subsidiary with the financials of the parent company. This is typically done when a parent holds more than 50 percent of shares of another entity.

The given companies S or P is parent company.

Answer 8

b.

To determine

Consolidation entry: The basic consolidation entry removes the investment in the parent company stock account and subsidiary’s stockholders' equity accounts. Consolidation is the process of combining the financials of a subsidiary with the financials of the parent company. This is typically done when a parent holds more than 50 percent of shares of another entity.

Percentage of owner ship parent P holds in subsidiary S

Answer 9

b.

To determine

Consolidation entry: The basic consolidation entry removes the investment in the parent company stock account and subsidiary’s stockholders' equity accounts. Consolidation is the process of combining the financials of a subsidiary with the financials of the parent company. This is typically done when a parent holds more than 50 percent of shares of another entity.

Percentage of owner ship parent P holds in subsidiary S

Answer 10

c.

To determine

Consolidation entry: The basic consolidation entry removes the investment in the parent company stock account and subsidiary’s stockholders' equity accounts. Consolidation is the process of combining the financials of a subsidiary with the financials of the parent company. This is typically done when a parent holds more than 50 percent of shares of another entity.

Amount to be reported without consolidating entry when net income for 20X7 is $70,000.

Answer 11

c.

To determine

Consolidation entry: The basic consolidation entry removes the investment in the parent company stock account and subsidiary’s stockholders' equity accounts. Consolidation is the process of combining the financials of a subsidiary with the financials of the parent company. This is typically done when a parent holds more than 50 percent of shares of another entity.

Amount to be reported without consolidating entry when net income for 20X7 is $70,000.

Answer 12

d

To determine

Consolidation entry: The basic consolidation entry removes the investment in the parent company stock account and subsidiary’s stockholders' equity accounts. Consolidation is the process of combining the financials of a subsidiary with the financials of the parent company. This is typically done when a parent holds more than 50 percent of shares of another entity.

Increase or decrease in income to the non-controlling interest reported in 20X7 as a result of preceding consolidating entry

Answer 13

d

To determine

Consolidation entry: The basic consolidation entry removes the investment in the parent company stock account and subsidiary’s stockholders' equity accounts. Consolidation is the process of combining the financials of a subsidiary with the financials of the parent company. This is typically done when a parent holds more than 50 percent of shares of another entity.

Increase or decrease in income to the non-controlling interest reported in 20X7 as a result of preceding consolidating entry

Answer 14

e

To determine

Consolidation entry: The basic consolidation entry removes the investment in the parent company stock account and subsidiary’s stockholders' equity accounts. Consolidation is the process of combining the financials of a subsidiary with the financials of the parent company. This is typically done when a parent holds more than 50 percent of shares of another entity.

Preparation of elimination entry for consolidation worksheet on December 31 20X8.

Answer 15

e

To determine

Consolidation entry: The basic consolidation entry removes the investment in the parent company stock account and subsidiary’s stockholders' equity accounts. Consolidation is the process of combining the financials of a subsidiary with the financials of the parent company. This is typically done when a parent holds more than 50 percent of shares of another entity.

Preparation of elimination entry for consolidation worksheet on December 31 20X8.

Answer 16

Expert Solution & Answer

Answer 17

Expert Solution & Answer

Answer 18

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 19

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

Want to see the full answer?

Chapter 8 Solutions