Prepare journal entry that allie record for bond interest

Assignment Help Financial Accounting

Reference no: EM132780412

Question - On 1/1/2019, Allie Company issued bonds payable of $500,000 at 8%. It was sold at $464,000 with effective interest rate of 9%. On 1/1/2020, Choco purchased all of Allie's bond for $532,000 cash with effective interest at 7% and Allie's bonds payable has been effectively retired.

1) What is Allies' book value of $500,000 bonds payable on 1/1/2020?

2) Prepare journal entry that Choco will record on 1/1/2020 regarding purchase of Allie's bond.

3) Compute the consolidated gain or loss on a consolidated income statement for at the end of 2020.

4) Prepare journal entry that Allie will record for bond interest expense on 12/31/2020.

5) Prepare journal entry that Choco will record for bond interest income on 12/31/2020.

6) Prepare consolidation entry B on 12/31/2020?

7) Prepare journal entry that Allie will record for bond interest expense on 12/31/2021.

8) Prepare journal entry that Choco will record for bond interest income on 12/31/2021.

9) Prepare consolidation entry B on 12/31/2021?

Reference no: EM132780412

Questions Cloud

What should be cosco earnings per common share : Net income for the year ended December 31, 2018 was $960,000. What should be Cosco's 2018 earnings per common share and diluted EPS

Discuss the advantages of treating clustering : Discuss the advantages and disadvantages of treating clustering as an optimization problem. Among other factors, consider efficiency, non-determinism

BSBINN601 Lead and manage organisational change Assignment : BSBINN601 Lead and manage organisational change Assignment Help and Solution, Aventia Institute - Assessment Writing Service

Description of each process as presented in kloppenborg : Provide a brief description of each process as presented in the Kloppenborg text:

Prepare journal entry that allie record for bond interest : On 1/1/2019, Allie Company issued bonds payable of $500,000 at 8%. Prepare journal entry that Allie record for bond interest

How would the respiratory nurse respond : Eleven-month-old Bianca is being assessed in the chest clinic today by the respiratory nurse. Bianca requires continuous portable oxygen via nasal prongs.

What did learn about yourselves as civil engineers : What did you learn about yourselves as civil engineers? What were areas of weaknesses and strengths did your discover about your public speaking skills?

Discuss professional nursing leadership and management roles : Discuss professional nursing leadership and management roles that have arisen and how they are important in responding to emerging trends and in the promotion.

Focus on transformational leadership and knowledge : This journal articles focus on transformational leadership and knowledge and knowledge sharing within an organization, p

User Account

All Pages