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only do a-d skip part E please Punk Corporation purchased 90 percent of Soul Company's voting common shares on January 1,202, at underlying book value.
only do a-d skip part E please
Punk Corporation purchased 90 percent of Soul Company's voting common shares on January 1,202, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 10 percent of the book value of Soul Company. Punk also purchased $83,000 of 6 percent, five-year bonds directly from Soul on January 1,202, for $87,000. The bonds pay interest annually on December 31. The trial balances of the companies as of December 31,204, are as follows: Note: Assume using straight-line amortization of bond discount or premlum. Required: a. Prepare the journal entry or entrles for 204 on Punk's books related to Its Investment in Soul Company stock. b. Prepare the journal entry or entries for 204 on Punk's books related to Its Investment in Soul Company bonds. c. Prepare the journal entry or entries for 204 on Soul's books related to its bonds payable. d. Prepare the consolidation entries needed to complete a consolidated worksheet for 204. e. Prepare a three-part consolidated worksheet for 204. Prepare the journal entry or entries for 204 on Punk's books related to its investment in Soul Company stock. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. A Record the dividends from Soul. B Record the equity-method income. Note : = journal entry has been entered Prepare the journal entry or entries for 204 on Punk's books related to its investment in Soul Company bonds. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet Record the entry for the interest income on the bond investment. Note: Enter debits before credits. Prepare the journal entry or entries for 204 on Soul's books related to its bonds payable. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet Record the entry for interest expense on bond investment. Note: Enter debits before credits. Prepare the consolidation entries needed to complete a consolidated worksheet for 204. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. A Record the basic consolidation entry. B Record the entry to eliminate the intercompany bond holdings. Note : = journal entry has been enteredStep by Step Solution
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