Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on january 1, 2000 apache company acquired all of

On January 1, 2000 Apache Company acquired all of the stock of Polar Company at...

80.2K

Verified Solution

Question

Accounting

On January 1, 2000 Apache Company acquired all of the stock of Polar Company at book value. Apache accounts for its investment in Polar using the initial value method and Polar doesn't pay any dividends.

On January 1st 2015 Polar Company issued $1,000,000 face value bonds for $930,000 These 7% bonds pay interest On January 1st 2015 Polar Company issued $1,000,000 face value bonds for $930,000 These 7% bonds pay interest.

On January 1, 2020, Apache Company acquired all of the Polar bonds for $955,000.

a) make Polar's journal entry when it sold the bonds in 2015.

b) make the journal entry Polar makes when it makes its first interest payment on July 1, 2015

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

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

e) Make the necessary worksheet entries for 2020

f) In 2020, Apache reported unconsolidated income of $900,000 and Polar reported income of $100,000 what is consolidated income

g) make the necessary worksheet entries for 2021

h) in 2021, Apache reported unconsolidated income of $800,000 and Polar reported income $125,000 what is consolidated income

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

Medical Sciences
1.2K views

Which of the following pressures must always be lower than the others in order to ensure...

Basic Math
1.2K views

If you have a chance please answer as many as possible, thank you and I really...

Biology
1.2K views

A 20-year-old woman thought she had an infected blister on her toe. That evening. she...

Basic Math
1.2K views

The population of Boomtown is currently 11000 and expected to grow by 3 5 over...

Algebra
1.2K views

One measure of living standards in country A is given by the following formula L...

Accounting
1.2K views

ABC Company is the distributor of a product that sells for $50 per...

Accounting
1.2K views

On January 1, 2018, Quick Delivery Service purchased a truck at a cost...

Accounting
1.2K views

Describe how the accrual basis of accounting enhances the interpretation of financial statements

Accounting
1.2K views

Inventory at the end of 2022 was $1,400. (a) Calculate the inventory tumover ratio, days...

Finance
1.2K views

Publishing companies are chara

Accounting
1.2K views

Tall Timbers reports the following data for its first year of operation. What is the...

Finance
1.2K views

QUESTION 10 What is the present value of $435,060.00 given an interest rate of 3.00%...