Cairns owns 75 percent of the voting stock of Hamilton, Incorporated. The parents interest was...
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Cairns owns percent of the voting stock of Hamilton, Incorporated. The parents 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 Hamilton sold $ in year bonds to the public at The bonds had a cash interest rate of percent payable every December Cairns acquired percent of these bonds at percent of face value on January Both companies utilize the straightline method of amortization. Required: Prepare the consolidation worksheet entries to recognize the effects of the intraentity bonds at each of the following dates. Note: If no entry is required for a transactionevent select No journal entry required" in the first account field. December December December
Cairns owns percent of the voting stock of Hamilton, Incorporated. The parents 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 Hamilton sold $ in year bonds to the public at The bonds had a cash interest rate of percent payable every December Cairns acquired percent of these bonds at percent of face value on January Both companies utilize the straightline method of amortization.
Required:
Prepare the consolidation worksheet entries to recognize the effects of the intraentity bonds at each of the following dates.
Note: If no entry is required for a transactionevent select No journal entry required" in the first account field.
December
December
December
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