What is consolidated income

Reference no: EM132695596

Question - On January 1, 2000 Apple Company acquired all of the stock of Pear Company at book value. Apple accounts for its investment in Pear using the initial value method and Pear doesn't pay any dividends On January 1st 2015 Pear Company issued $1,000,000 face value bonds for $930,000 These 7% bonds pay interest each July 1 and January 1. Pear uses straight line amortization on these 20 year bonds. On January 1, 2020, Apple Company acquired all of the Pear bonds for $955,000.

REQUIRED -

a) Make Pear's journal entry when it sold the bonds in 2015.

b) Make the journal entry Pear makes when it makes its first interest payment on July 1, 2015.

c) Make the entry Apple makes when it acquires the bonds in 2020.

d) Make the entry Apple makes when it receives its first journal entry on July 1, 2020

e) Make the necessary worksheet entries for 2020.

f) In 2020, Apple reported unconsolidated income of $900,000 and Pear reported income of $100,000 what is consolidated income.

g) Make the necessary worksheet entries for 2021.

h) In 2021, Apple reported unconsolidated income of $800,000 and Pear reported income $125,000 what is consolidated income.

Reference no: EM132695596

Questions Cloud

Blockchain-based student transcript concept : Be creative, but make sure it relates directly to the blockchain-based student transcript concept previously distributed.

What adjusting entry is required as of June : An electricity bill of $550 for June has not been recorded and will not be paid until next month. What adjusting entry is required as of 30 June

Prepare entries for the debt service fund : The budget also included an estimated transfer in of $6,400 from the capital projects fund. Prepare entries for the debt service fund for 20X2

Considering returning to school to earn degree : How would you describe academic writing to a co-worker who is considering returning to school to earn their degree?

What is consolidated income : In 2021, Apple reported unconsolidated income of $800,000 and Pear reported income $125,000 what is consolidated income

Lotr experience not to cut security budget have paid off : Your recent endeavors to convince upper management at LOTR Experience not to cut the security budget have paid off.

Discuss whether the auditors should modify their report : Discuss whether the auditors should modify their report because of uncertainty about whether or not MPS can remain a going concern

Great day fitness tracking : Describe the plan to select the appropriate hardware and software and the different approaches for managing data.

Calculate the amount of goodwill at the date of acquisition : On the date of acquisition, buildings have a carrying amount in the accounts of Jamuna Ltd of $240 00. Calculate the amount of goodwill at date of acquisition

User Account

All Pages