Prepare the consolidation worksheet entries

Assignment Help Financial Accounting
Reference no: EM132944329

Question - Cairns owns 70 percent of the voting stock of Hamilton, Inc. The parent's interest was acquired several years ago on the date that the subsidiary was formed. Consequently, no goodwill or other allocation was recorded in connection with the acquisition. Cairns uses the equity method in its internal records to account for its investment in Hamilton.

On January 1, 2017, Hamilton sold $2,500,000 in 10-year bonds to the public at 105. The bonds had a cash interest rate of 10 percent payable every December 31. Cairns acquired 30 percent of these bonds at 96 percent of face value on January 1, 2019. Both companies utilize the straight-line method of amortization.

Prepare the consolidation worksheet entries to recognize the effects of the intra-entity bonds at each of the following dates. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

1. December 31, 2019

2. December 31, 2020

3. December 31, 2021

Reference no: EM132944329

Questions Cloud

Creating a strategic plan : In strategic planning, what components would you consider necessary for creating a strategic plan?
What the annual profit would be : What would be the annual profit? A company dedicated to manufacturing industrial bearings is reviewing its operating costs. The result is that the variable cost
Prepare the appropriate journal entries through the maturity : Selected transactions relate to liabilities of United Insulation. Prepare the appropriate journal entries through the maturity of each liability.
Determine the total cash flows for year zero : Determine the total cash flows for year 0, 1 and the last year of the project. New West and Van Corporation is considering to launch an innovative product
Prepare the consolidation worksheet entries : Prepare the consolidation worksheet entries to recognize the effects of the intra-entity bonds at each of the following dates
Calculate the yield to maturity : If the bonds were sold at 102.5% of their face value, calculate the yield to maturity. ABC Corporation issued 10,000 units of $1,000 face value bonds.
Calculate the net debt of the company : Calculate the net debt of the company based on the information below: Short-term interest bearing debt: 3000 and Cash + Equivalents: 1200
What is project npv using a discount rate of seven percent : The investment requires an initial outlay of ?$90,000 and will generate net cash inflows. What is the? project's NPV using a discount rate of 7 percent??
Calculate the standard price per gallon of direct materials : Marigold's direct materials price variance was $2,400 Favorable. Calculate the standard price per gallon of direct materials

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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