Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. use the following information for #63-65: moon cor

Use the following information for #63-65: Moon Corporation issued $300,000 par value 10-year bonds at...

60.1K

Verified Solution

Question

Accounting

image
Use the following information for #63-65: Moon Corporation issued $300,000 par value 10-year bonds at 107 on January 1, 2012, which Star Corpora- tion purchased. On July 1, 2016, Sun Corporation purchased $120,000 of Moon bonds from Star. The bonds pay 12% interest annually on December 31. The preparation of consolidated financial statements for Moon and Sun at December 31, 2018, required the following eliminating entry: Bonds Payable Premium on Bonds Payable Interest Income 120,000 2,520 14,760 Investment in Moon Bonds 118,920 13,560 3,120 1,680 Interest Expense Investment in Moon Stock NCI in NA of Moon 63. What percentage of the subsidiary's ownership does the parent company hold? a. 75% c. 80% d. 95% b. 65% 64. What amount did Sun pay when it purchased the bonds on July I, 2016? a. $118,020 c. $I18,620 d. $117,220 b. $118,920 65. What amount of gain/ loss on bond retirement is included in the 2016 consolidated income statement? c. $6,000 d. $5,400 b. $4,800 a. $6,600

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

Basic Math
1.2K views

B.38   Average Size of a Performing Group in the Rock and Roll Hall of Fame From its founding...

Physics
1.2K views

Find the instantaneous velocity at t 3 5 s from the graph given below w...

Geometry
1.2K views

Corresponding Angles Theorem If two parallel lines are cut by a transversal then the pairs...

Basic Math
1.2K views

Find f for the function f x x 10 x 10 10 x 10 x...

Statistics
1.2K views

The percentage of wins for a basketball team going into the playoffs was 62.6%. Round...

Calculus
1.2K views

Convex quadrilateral ABCD has AB = 6, BC = 7, CD = 9, and DA...

Algebra
1.2K views

25 For the following quadratic Find the value of the discriminant 2 7z 2 O...

Algebra
1.2K views

Using the graph of f shown below find three intervals on which f is one...

Accounting
1.2K views

On July 1, 2021, Ponasis Corporation issued $1 million of 10-year, 6% bonds...

Accounting
1.2K views

answer requirement 2 The Richmond Shit...

Accounting
1.2K views

The Chamberlain Corporation reported the following: \begin{tabular}{lrrr} Income Statement & Year3 & Year2 & Year1...

Accounting
1.2K views

The following income statement along with additional year-end information about changes in noncash current assets...