Business, 12.02.2021 16:50 SorayaC9669
Stallion Corporation sold $100,000 par value, 10-year first mortgage bonds to Pony Corporation on January 1, 20X5. The bonds, which bear a nominal interest rate of 12 percent, pay interest semiannually on January 1 and July 1. The entry to record interest income by Pony Corporation on December 31, 20X7, was as follows:
Note: Assume using straight-line amortization of bond discount or premium.
General JournalDebitCredit
Interest Receivable6,000
Interest Income 5,750
Investment in Stallion Corporation Bonds 250
Pony Corporation owns 65 percent of the voting stock of Stallion Corporation, and consolidated statements are prepared on December 31, 20X7.
Required:
a. What was the original purchase price of the bonds to Pony Corporation?
b. What is the balance in Pony’s bond investment account on December 31, 20X7?
c. Prepare the worksheet consolidation entry or entries needed to remove the effects of the intercompany ownership of bonds in preparing consolidated financial statements for 20X7. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answers: 3
Business, 22.06.2019 09:00
Brian has been working for a few years now and has saved a substantial amount of money. he now wants to invest 50 percent of his savings in a bank account where it will be locked for three years and gain interest. which type of bank account should brian open? a. savings account b. money market account c. checking account d. certificate of deposit
Answers: 1
Business, 22.06.2019 21:20
What business practice contributed most to andrew carnegie’s ability to form a monopoly?
Answers: 1
Stallion Corporation sold $100,000 par value, 10-year first mortgage bonds to Pony Corporation on Ja...
Geography, 10.06.2021 14:00
Computers and Technology, 10.06.2021 14:00
Physics, 10.06.2021 14:00
Mathematics, 10.06.2021 14:00
English, 10.06.2021 14:00
Business, 10.06.2021 14:00
Biology, 10.06.2021 14:00
Physics, 10.06.2021 14:00
Arts, 10.06.2021 14:00
Mathematics, 10.06.2021 14:00
Physics, 10.06.2021 14:00
Computers and Technology, 10.06.2021 14:00