Advanced Accounting
12th Edition
ISBN: 9781305084858
Author: Paul M. Fischer, William J. Tayler, Rita H. Cheng
Publisher: Cengage Learning
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Chapter 5, Problem 4E
To determine
To compute: Gain/loss on retirement and to prepare income distribution schedule for the remaining term of the bonds.
Introduction: Consolidation is a process in which financial statements of a subsidiary company is merged with the financial statements of the parent company. In this process, effect of intercompany transactions are eliminated.
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On November 1, 2015, Journeyman, LLC purchased 900 of the $1,000 face value, 9% bonds of Celebration Incorporated, for $948,000, including accrued interest of $13,500. The bonds matured on January 1, 2017, and interest was paid on March 1 and September 1. If Journeyman uses the straight-line method of amortization and the bonds are classified as available-for-sale, how should the net carrying value of the bonds be shown on Journeyman’s December 31, 2015 balance sheet?
On January 1, 2025, Culver Company purchased $280,000, 6% bonds of Aguirre Co. for $
257, 289. The bonds were purchased to yield 8% interest. Interest is payable semiannually on
July 1 and January 1. The bonds mature on January 1, 2030. Culver Company uses the
effective - interest method to amortize discount or premium. On January 1, 2027, Culver
Company sold the bonds for $258,816 after receiving interest to meet its liquidity needs.
/25/25 $/26/26 - /27/27/28/28 1/1/297/1/291/1/30 Tatal
1
alain Company purchased $800,000 of 8%
bonds of alain Corporation on January 1,
2015, at a discount, paying $ 738,2242. The
bonds mature January 1, 2020, and yield 10%;
interest is payable each July 1 and January 1.
Assume that Robinson Company sells its
investment on November 1, 2018, at 90 plus
accrued interest. a) Robinson records this
discount amortization as follows: b)
Computation Gain/Loss on Sale of Bonds and
Journal entry.
Chapter 5 Solutions
Advanced Accounting
Ch. 5 - Prob. 1UTICh. 5 - Subsidiary Company S has $1000,000 of bonds...Ch. 5 - Plessor Industries acquired 80% of the outstanding...Ch. 5 - Company P purchased $100,000 of subsidiary Company...Ch. 5 - Prob. 5UTICh. 5 - Prob. 6UTICh. 5 - Prob. 7UTICh. 5 - Prob. 1ECh. 5 - Prob. 2ECh. 5 - Prob. 3.1E
Ch. 5 - Prob. 3.2ECh. 5 - Prob. 4ECh. 5 - Carlton Company is an 80%- owned subsidiary of...Ch. 5 - Carlton Company is an 80%- owned subsidiary of...Ch. 5 - Prob. 6.1ECh. 5 - Prob. 6.2ECh. 5 - Prob. 7.1ECh. 5 - Prob. 7.2ECh. 5 - Prob. 7.3ECh. 5 - Prob. 8.1ECh. 5 - Prob. 8.3ECh. 5 - Prob. 9ECh. 5 - Prob. 5.1.1PCh. 5 - Prob. 5.1.2PCh. 5 - Prob. 5.2PCh. 5 - Prob. 5.3PCh. 5 - Prob. 5.4PCh. 5 - Prob. 5.5PCh. 5 - Prob. 5.6PCh. 5 - Prob. 5.7PCh. 5 - Prob. 5.8.1PCh. 5 - Prob. 5.8.2PCh. 5 - Prob. 5.9PCh. 5 - Prob. 5.10PCh. 5 - Prob. 5.14PCh. 5 - Prob. 5.2.1CCh. 5 - Prob. 5.2.2CCh. 5 - Prob. 5.3.1CCh. 5 - Prob. 5.3.2CCh. 5 - Prob. 5.3.3CCh. 5 - Prob. 5.3.4C
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