Make the journal entry superman made when it sold the bonds

Assignment Help Accounting Basics
Reference no: EM131880710

Question: On 1/1/1999 Batman Co. purchased all of the outstanding shares of Superman Company at book value Superman Company doesn't pay dividends and Batman Company uses the initial value method for its investment in Superman

On 1/1/2013 Superman Company issued $1,000,000 8% 20 year bonds for $940,000. Superman uses straight line amortization of the discount. These bonds pay interest annually on January 1st.

On 1/1/2015 Batman purchased 1/2/ of the Superman Company bonds in the market place for $482,000. Batman also uses straight line amortization for its investment in bonds

Again, batman and superman had no transactions with each other except for the bond transactions

Required: A) Make the journal entry superman made when it sold the bonds

B) Make the entry superman makes on december 31 for accruing interest

C) Make the entry batman makes when it buys the bonds

D) Make the entry batman makes on december 31 to accure interest

Reference no: EM131880710

Questions Cloud

What does this suggest about your participants : If you have a distribution with more than 1 mode, what does this suggest about your participants?
What additional income tax liability nittany company face : Assuming the IRS recharacterizes $200,000 of Joe's bonus as a dividend, what additional income tax liability does Nittany Company face
Discuss the protagonists journeys as a focal point : This article compares Nathaniel Hawthorne's "Young Goodman Brown" and Eudora Welty's "A Worn Path," discussing the protagonists' journeys as a focal point.
Calculate the mean-median-mode-standard deviation : As presented in lecture, calculate the mean, median, mode, standard deviation, range, variance, and n for the following dataset. Show your work
Make the journal entry superman made when it sold the bonds : On 1/1/1999 Batman Co. purchased all of the outstanding shares of Superman Company at book value Superman Company doesn't pay dividends and Batman Company.
What is the amount and character recognized by wilma : What is the amount and character (capital gain or dividend) recognized by Wilma as a result of the stock redemption
What implicit assumption provides a shortcut in situation : In which do you have to make more assumptions? Why? What implicit assumption provides a shortcut in one situation?
Will cost of production labor appear to be fixed or variable : A Dunkin' Donuts franchise owner hires a baker to prepare donuts each morning. One baker works Monday through Friday, another works weekends.
Why is planning for a new business harder : Why is planning for a new business harder than planning for an established operation? In which do you have to make more assumptions? Why?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd