Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. pepper enterprises owns 95 percent of salt corpora

Pepper Enterprises owns 95 percent of Salt Corporation. On January 1,20X1, Salt issued...

80.2K

Verified Solution

Question

Accounting

Pepper Enterprises owns 95 percent of Salt Corporation. On January 1,20X1, Salt issued $200,000 of five-year bonds at 115. Annual interest of 12 percent is paid semiannually on January 1 and July 1. Pepper purchased $100,000 of the bonds on July 1,203, at par value. The following balances are taken from the separate 203 financial statements of the two companies:
\table[[,Pepper Enterprises,Salt Corporation],[Investment in Salt Corporation Bonds,$100,000,],[Interest Income,6,000,],[Interest Receivable,6,000,],[Bonds Payable,,$200,000
image

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

Chemistry
1.2K views

What shape heating and cooling curves suppose to have?

Medical Sciences
1.2K views

Describe the physiology of a neuronal impulse, including all relevant definitions and steps, to explain what...

Physics
1.2K views

Usually light of red colour is used to see the diffraction pattern by single slit...

Basic Math
1.2K views

Washington Air Company is considering the purchase of a helicopter for connecting services between the...

Accounting
1.2K views

Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $80 per Variable expenses...

Accounting
1.2K views

The cost of a new home is $95,000.00 and the bank requires a 5.4% down...

Accounting
1.2K views

Yuri Co. operates a chain of gift shops. The company maintains a defined contribution pension...

Accounting
1.2K views

Casey Nelson is a divisional manager for Pigeon Company. His annual pay raises are largely...

Accounting
1.2K views

Why exactly are these trends are occurring, what are the underlying business environment or strategic/management...

Accounting
1.2K views

Wally changed his home to rental use on August 1 of the current tax year....

Finance
1.2K views

You are given that: (i) The current price of a stock is 100; (ii) The...

Finance
1.2K views

Someone approaches you with an investment with an annual return of 3% per year. How...