Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On July 1, 2016. Siegel Company sold to outside investors $300,000 par value of 10-year 10% bonds The price received was equal to par. The

image text in transcribed
image text in transcribed
On July 1, 2016. Siegel Company sold to outside investors $300,000 par value of 10-year 10% bonds The price received was equal to par. The bonds pay interessomi-annually on July and January 1 During early 2019. market interest rates on bonds similar to those issued by Sige doors to 8%. As a result, the market value of the bonds increased On July 1, 2019, Pope purchased $150,000 per value of Siegel's bonds, paying $163,000. Pope still holds the bonds on December 31, 2019 and has amortised the premium, using the straight-line method Required Complete the Figure 5-1 worksheet for consolidated financial statements for the year ended December 31, 2019. Round all computations to the nearest dollar Figure 5-1 worksheet A Det Chad Account Tiles Interest Receivable Other Current Assets Investment in Sub Company Tirialance Pops Sid Company 7.500 157.212 371.000 410,000 Investment in Sub Beads 162.278 Land Buildings and Equipment Accumulated depreciation Goodwill 50,000 350,000 (100,000) 30,000 380,000 (50,000) Interest Payable Other Current Liabilities Bonds Payable, 10% (120,000) (15,000) (56,000) (300,000) Other Long-Term Libilities Common Stock-P Co. Other Paid-in Capital - P Co. Retained Earnings - PC (200,000) (200,000) (100,000) (280.212) Common Stock - Co. Other Paid-in Capital - Co. Retained Earnings - S Co. (50,000) (70,000) (180,000) (500,000) 300,000 100,000 (400,000) 240,000 50,000 30,000 Net Sales Cost of Goods Sold Operating Expenses Interest Expense Interest Income Subsidiary Income Dividends declared-PCo Dividends declared - Co. Los on Retirement of Bonds (6,778) (80,000) 50,000 20,000 Consolidated Not Income To NCI To Controlling Interest Total NCI Ret Far Cootr. lat. 12-31 0 Cool Income Cool Red Consol Balance NCI 0 Acids Is Reserve Other Com As vain Sub C Investment in Sa Bonds Land Buildings and Equipment Accumulated depreciation Goodwill Interest Payable Other Current Liabilities Bonds Payable, 10% Other Long-Term Liabilities Common Stock-P Co. Other Paid-in Capital - P Co. Retained Earnings-P Co. Common Stock - S Co. Other Paid-in Capital - Co. Retained Earnings - Co. Net Sales Cost of Goods Sold Operating Expenses Interest Expense Interest Income Subsidiary Income Dividends declared - P Co. Dividends declared - S Co. Loss on Retirement of Bonds Consolidated Net Income To NCI To Controlling Interest Total NCI Ret. Eam. Contr. Int. 12-31 0 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Quality Auditing In Construction Projects

Authors: Abdul Razzak Rumane

1st Edition

1032570245, 978-1032570242

More Books

Students also viewed these Accounting questions

Question

6. Have you used solid reasoning in your argument?

Answered: 1 week ago