Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please , I need help! Calms owns 70 percent of the voting stock of Hamilton, Inc. The parent's interest was acquired several years ago on

Please , I need help!
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Calms owns 70 percent of the voting stock of Hamilton, Inc. The parent's interest was acquired several years ago on the date that the subsidiary was formed. Consequently, no goodwill or other allocation was recorded in connection with the acquisition Cairns uses the equity method in its internal records to account for its investment in Hamilton On January 1, 2014, Hamilton sold $1,100,000 in 10-year bonds to the public at 110. The bonds had a cash interest rate of 8 percent payable every December 31. Cairns acquired 45 percent of these bonds at 92 percent of face value on January 1, 2016. Both companies utilize the straight-line method of amortization Prepare the consolidation worksheet entries to recognize the effects of the intra-entity bonds at each of the following dates. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a. December 31, 2016 b. December 31, 2017 c. December 31, 2018 view transaction list Consolidation Worksheet Entries 2 3 Consolidation Worksheet Entries 1 2 3 Prepare Entry B to eliminate accounts stemming from intra-entity bonds and to recognize the gain on the effective retirement of this debt. Note: Enter debits before credits. Accounts Debit Credit Date December 31, 2016 Record entry Clear entry vlow consolidation entries Consolidation Worksheet Entries

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

Auditing And Assurance A Case Studies Approach

Authors: LexisNexis

7th Edition

0409343943, 978-0409343946

More Books

Students also viewed these Accounting questions