On January 1st 2008, Batman Company acquired all of the voting stock of Catwomen Company...
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Accounting
On January 1st 2008, Batman Company acquired all of the voting stock of Catwomen Company at book value. Batman accounts for its investment in Catwomen using the initial value method (cost method) and Catwomen does not pay dividends.
On January 1st 2016, Batman issued (sold) 800 of $1,000 par 20 year 8% semiannual bonds for $760,000. Batman uses straight line method to amortize the bond discount.
On January 1st 2019, Catwomen purchased all of the bonds for $817,000. Catwomen also uses straight line method to amortize the premium.
In 2019, Batman reported income of $555,000 (unconsolidated) and Catwomen reported income of $35,000.
In 2020, Batman reported income of $589,000 (unconsolidated) and Catwomen reported income of $47,000.
1. Make the Journal entries needed for 2019.
2. Make the Journal entries needed for 2020
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