Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. i need help asap please. what consolidation entrie

I need help ASAP Please. What consolidation entries would be recorded in connection with these...

70.2K

Verified Solution

Question

Accounting

I need help ASAP Please. What consolidation entries would be recorded in connection with these intra-entity bonds on December 31, 2013 and December 31, 2014?

Make sure it`s for two years December 31 2013 and December 31, 2013

Fargus Corporation owned 61% of the voting common stock of Sanatee, 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 price.

On January 1, 2010, Sanatee sold $1,400,000 in ten-year bonds to the public at 109. The bonds pay a 10% interest rate every December 31. Fargus acquired 40% of these bonds on January 1, 2013, for 94% of the face value. Both companies utilized the straight-line method of amortization.

What consolidation entries would be recorded in connection with these intra-entity bonds on December 31, 2013 and December 31, 2014? Support your entries by preparing schedules to show numerical answers for balances that would be needed for the entry.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students