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Everything with green check marks is correct. Can someone help me with all the answers that have a red X next to them? Plug Corporation
Everything with green check marks is correct. Can someone help me with all the answers that have a red "X" next to them?
Plug Corporation purchased $100,000 par value bonds of its subsidiary, Spark Company, on December 31, 20X5, from Lemon Corporation for $102,800. The 10-year bonds bear a 9 percent coupon rate, and Spark originally sold them on January 1, 20X3, to Lemon at 95. Interest is paid annually on December 31. Plug owns 85 percent of the stock of Spark. In preparing the consolidation worksheet at December 31, 20X6, Plug's controller made the following entry to eliminate the effects of the Intercorporate bond ownership: Credit Consolidation Worksheet Entries Bonds Payable Interest Income Retained Earnings, January 1 Noncontrolling Interest Investment in Spark Company Bonds Discount on Bonds Payable Interest Expense Debit 100,eee 8,691 5,741 1,013 102,491 3,535 9,419 b. Prepare the consolidation entry to remove the effects of the Intercorporate bond ownership in completing a three-part consolidation worksheet at December 31, 20X5. (If no entry is required for a transaction/event, select "No journal entry required" In the first account field. Do not round your Intermediate calculations. Round your final answers to nearest whole dollar.) Answer is complete but not entirely correct. No Event Accounts Debit Credit A 1 100.000 8,300 Bonds payable Loss on bond retirement Investment in Spark Company bonds Discount on bonds payable 102,800 3,500 c. Spark reported net income of $60,000 and $80,000 for 20x5 and 20X6, respectively. Plug reported Income from its separate operations of $120,000 and $150,000 for 20x5 and 20x6, respectively. What amount of consolidated net Income and income to the controlling Interest will be reported in the consolidated Income statements for 20x5 and 20X6? (Do not round your Intermedlate calculations. Round your final answers to nearest whole dollar.) Answer is complete but not entirely correct. Consolidated net income 20X5 20X6 $ 165.114 * $ 230.728 $ 218.837 X $ 226,692 Income to controlling interestStep by Step Solution
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