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In: Accounting
Wood Corporation owns 70 percent of Carter Company’s voting shares. On January 1, 20X3, Carter sold...
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Wood Corporation owns 70 percent of Carter Company’s voting shares. On January 1, 20X3, Carter sold bonds with a par value of $645,000 at 98. Wood purchased $430,000 par value of the bonds; the remainder was sold to nonaffiliates. The bonds mature in five years and pay an annual interest rate of 8 percent. Interest is paid semiannually on January 1 and July 1.
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Expert Solution
| PART A | |||
| Interest on bonds payable | $ 51,600.00 | ||
| Discount Amortization | $ 2,580.00 | ||
| Interst + Amortization | $ 54,180.00 | ||
| No. of years to amortize | $ 18,060.00 | ||
| PART B | |||
| DATE | PARTICULARS | DEBIT | CREDIT |
| 01.01.2014 | Cash | $ 17,200.00 | |
| Interest receivable | $ 17,200.00 | ||
| (to record interest receivable) | |||
| 01.07.2014 | Cash | $ 17,200.00 | |
| Inv in C company bonds | $ 860.00 | ||
| Interest receivable | $ 18,060.00 | ||
| (to record interest receivable) | |||
| 31.12.2014 | Interest receivable | $ 17,200.00 | |
| Investment in C company bonds | $ 860.00 | ||
| Interst income | $ 18,060.00 | ||
| PART C | |||
| DATE | PARTICULARS | DEBIT | CREDIT |
| Bonds Payable | $ 430,000.00 | ||
| Interest income | $ 36,120.00 | ||
| Investment in C company bonds | $ 424,840.00 | ||
| Bonds discount | $ 5,160.00 | ||
| Interest income | $ 36,120.00 | ||
| Interest payable | $ 17,200.00 | ||
| Interest receivable | $ 17,200.00 | ||
ekkarill92 answered 1 year agoRelated Solutions
Wood Corporation owns 70 percent of Carter Company’s voting shares. On January 1, 20X3, Carter sold...
Wood Corporation owns 70 percent of Carter Company’s voting
shares. On January 1, 20X3, Carter sold bonds with a par value of
$645,000 at 98. Wood purchased $430,000 par value of the bonds; the
remainder was sold to nonaffiliates. The bonds mature in five years
and pay an annual interest rate of 8 percent. Interest is paid
semiannually on January 1 and July 1.
a. What amount of interest expense should be reported in the
20X4 consolidated income statement? (Do...
Wood Corporation owns 70 percent of Carter Company’s voting shares. On January 1, 20X3, Carter sold...
Wood Corporation owns 70 percent of Carter Company’s voting
shares. On January 1, 20X3, Carter sold bonds with a par value of
$645,000 at 98. Wood purchased $430,000 par value of the bonds; the
remainder was sold to nonaffiliates. The bonds mature in five years
and pay an annual interest rate of 8 percent. Interest is paid
semiannually on January 1 and July 1.
Required:
a.
What amount of interest expense should be reported in the 20X4
consolidated income statement?...
Wood Corporation owns 70 percent of Carter Company’s voting shares. On January 1, 20X3, Carter sold...
Wood Corporation owns 70 percent of Carter Company’s voting
shares. On January 1, 20X3, Carter sold bonds with a par value of
$615,000 at 98. Wood purchased $410,000 par value of the bonds; the
remainder was sold to nonaffiliates. The bonds mature in five years
and pay an annual interest rate of 8 percent. Interest is paid
semiannually on January 1 and July 1.
Required:
a. What amount of interest expense should be reported in the
20X4 consolidated income statement?...
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Wood Corporation owns 70 percent of Carter Company’s voting
shares. On January 1, 20X3, Carter sold bonds with a par value of
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remainder was sold to nonaffiliates. The bonds mature in five years
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Pan Corporation owns 65 percent of Sauce Corporation's voting
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Based on the information given above, in the preparation of the
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Planner Corporation owns 60 percent of Schedule Company’s voting
shares. During 20X3, Planner produced 25,000 computer desks at a
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Schedule sold 7,000 of the desks to unaffiliated companies for $130
each prior to December 31, 20X3, and sold the remainder in early
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Planner Corporation owns 60 percent of Schedule Company’s voting shares. During 20X3, Planner produced 27,000 computer...
Planner Corporation owns 60 percent of Schedule Company’s voting
shares. During 20X3, Planner produced 27,000 computer desks at a
cost of $96 each and sold 12,000 of them to Schedule for $108 each.
Schedule sold 8,000 of the desks to unaffiliated companies for $136
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shares. During 20X3, Karlow produced 27,000 computer desks at a
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sold 8,000 of the desks to unaffiliated companies for $142 each
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1. Based on the information given above, what
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Light Corporation owns 80 percent of Sound Company's voting shares. On January 1, 20X7, Sound sold...
Light Corporation owns 80 percent of Sound Company's voting
shares. On January 1, 20X7, Sound sold bonds with a par value of
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percent. Interest is paid semiannually on June 30 and Dec 31. Based
on the information given above, what amount of interest expense
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