Question
SECOND TIME POSTING THIS. PLEASE DONT ANSWER AGAIN, IF YOU DID LAST TIME, BECAUSE YOU DID IT WRONG. IT WAS ALL WRONG. ALL THE ANSWERS
SECOND TIME POSTING THIS. PLEASE DONT ANSWER AGAIN, IF YOU DID LAST TIME, BECAUSE YOU DID IT WRONG. IT WAS ALL WRONG. ALL THE ANSWERS YOU GAVE "EXPERT" WERE WRONG. REFRAIN FROM ANSWERING IF YOU HAD ANSWERED THIS BEFORE. I ALREADY DOWNVOTED YOU. DONT MAKE ME DOWNVOTE YOU AGAIN. INTEREST EXPENSE WAS WRONG, IT WAS NOT A LOSS, ITS A GAIN, ITS NOT 80K+. DONT TOUCH MY QUESTIONS PLEASE, YOU DO NOT KNOW.
NOW, FOR OTHERS: PLEASE HELP ME.
I HAVE THIS HALF WORKED BUT SOME NUMBERS I HAVE ARE NOT ADDING UP. I WOULD APPRECIATE THE WORKINGS NOT JUST THE ANSWERS.
Pepper Enterprises owns 95 percent of Salt Corporation. On January 1, 20X1, Salt issued $200,000 of five-year bonds at 115. Annual interest of 12 percent is paid semiannually on January 1 and July 1. Pepper purchased $100,000 of the bonds on July 1, 20X3, at par value. The following balances are taken from the separate 20X3 financial statements of the two companies: Pepper Enterprises Salt Corporation Investment in Salt Corporation Bonds $ 100,000 Interest Income 6,000 Interest Receivable 6,000 Bonds Payable $ 200,000 Bond Premium 13,475 Interest Expense 18,039 Interest Payable 12,000 Required: Compute the amount of interest expense that should be reported in the consolidated income statement for 20X3. Compute the gain or loss on constructive bond retirement that should be reported in the 20X3 consolidated income statement. Prepare the consolidation worksheet consolidation entry or entries as of December 31, 20X3, to remove the effects of the intercorporate bond ownership.
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