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Need help with my debits and credits journal entries are correct. Able Company issued $930,000 of 10 percent first mortgage bonds on January 1, 20X1,
Need help with my debits and credits journal entries are correct.
Able Company issued $930,000 of 10 percent first mortgage bonds on January 1, 20X1, at 104. The bonds mature in 20 years and pay interest semiannually on January 1 and July 1. Prime Corporation purchased 620,000 of Able's bonds from the original purchaser on December 31, 20x5, for $613,000. Prime owns 70 percent of Able's voting common stock 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 rate of interest to 3 decimals. For example, .0547523 should be rounded to 5.475%.) l entry required" in the first account field. Round your market view transaction list transaction list No Event Debit Credit Bonds payable Premium on bonds payable Investment in Able Company bonds Interest payable Interest receivable 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 journal entry required" in the first account field. Round your market rate of interest to 3 decimals. For example, .0547523 should be rounded to 5.475%.) view transaction list transaction list No Event Accounts Debit Credit Bonds payable Premium on bonds payable Interest income Investment in Able Company bonds Interest expense Investment in Able Company NCI in NA of Able Company Interest payable Interest receivable Step by Step Solution
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