What consolidating entry adjustment is necessary

Assignment Help Accounting Basics
Reference no: EM132845550

Question - Consolidation adjustment necessary when affiliate's debt is acquired from non-affiliate.

Assume that a Parent company owns 65 percent of its Subsidiary. The parent company uses the equity method to account for its Equity investment. On January 1, 2015, the Parent company issued to an unaffiliated company $1,800,000 (face) 10 year, 10 percent bonds payable for a $90,000 premium. The bonds pay interest on December 31 of each year. On January 1, 2018, the Subsidiary acquired 30 percent of the bonds for $514,800. Both companies use straight-line amortization. In preparing the consolidated financial statements for the year ended December 31, 2019, what consolidating entry adjustment is necessary for the beginning-of-year Equity investment balance?

Reference no: EM132845550

Questions Cloud

Construct a histogram and an ogive of the data : A researcher draws a sample of 15 inmates and obtains the following data on their prior number of arrests. Construct a grouped cumulative frequency distribution
Prepare variable costing and absorption income statements : Prepare variable costing and absorption income statements with one column showing the results if 30,000 units are produced
How choice affected the development of the united states : Choose an aspect, policy, or practice of government during the presidency of Theodore Roosevelt and explain how your choice affected the development
Confidence interval for using the appropriate units : In one sentence provide an interpretation for the calculated 90% confidence interval for using the appropriate units.
What consolidating entry adjustment is necessary : In preparing the consolidated financial statements for the year ended December 31, 2019, what consolidating entry adjustment is necessary
What do think is the significance of the scottsboro trials : What do you think is the significance of the Scottsboro trials? How did the effects of the Great Depression increase racial tensions?
What percentage of graduates who take this exam have gre : a. What percentage of graduates who take this exam have GRE scores greater than 750?
What amount of interest related to financial liability : Serenity Inc. issued a five-year note payable for $200,000 and received $190,000 in cash. What amount of interest related to financial liability
Identify someone think is an effective leader : Identify someone you think is an effective leader. What traits and skills does this person possess that makes him or her effective?

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