2023年江西财经大学高级财务会计国际学院题库_第1页
2023年江西财经大学高级财务会计国际学院题库_第2页
2023年江西财经大学高级财务会计国际学院题库_第3页
2023年江西财经大学高级财务会计国际学院题库_第4页
2023年江西财经大学高级财务会计国际学院题库_第5页
已阅读5页,还剩45页未读 继续免费阅读

下载本文档

版权说明:本文档由用户提供并上传,收益归属内容提供方,若内容存在侵权,请进行举报或认领

文档简介

AdvancedAccounting,11e(Beams/Anthony/Bettinghaus/Smith)Chapter7IntercompanyProfitTransactions-BondsMultipleChoiceQuestions1)Ifthepricepaidbyaparentcompanytoacquirethedebtofasubsidiaryisgreaterthanthebookvalueoftheliability,a________occurs.A)realizedlossontheretirementofdebtfromtheviewpointofthesubsidiaryB)realizedgainontheretirementofdebtfromtheviewpointofthesubsidiaryC)constructivelossontheretirementofdebtfromtheviewpointoftheconsolidatedentityD)constructivegainontheretirementofdebtfromtheviewpointoftheconsolidatedentityAnswer:CObjective:LO1Difficulty:Easy2)Ifanaffiliatepurchasesbondsintheopenmarket,thebookvalueoftheintercompanybondliabilityatthetimeofpurchaseisA)alwaysassignedtotheparentcompanybecauseithascontrol.B)theparvalueofthebondslesstheunamortizeddiscountorplustheunamortizedpremium.C)parvalue.D)theparvalueofthebondsplustheunamortizeddiscountorlesstheunamortizedpremium.Answer:BObjective:LO1Difficulty:Easy3)Bondsissuedbyacompanyremainontheirbooksasaliability,butareconsideredconstructivelyretiredwhenA)thecompanyborrowsmoneyfromunaffiliatedentitiestore-purchaseitsownbondsatagain.B)Thecompanyborrowsmoneyfromanaffiliatetore-purchaseitsownbondsatagain.C)Thecompany'sparentorsubsidiarypurchasesthebondsfromoutsideentities.D)Thecompanyborrowsmoneyfromanaffiliatetorepurchaseitsownbondsatagainorataloss.Answer:CObjective:LO1Difficulty:Easy

Usethefollowinginformationtoanswerthequestion(s)below.PascalianCompanyownsa90%interestinSappCompany.OnJanuary1,2023,Pascalianhad$300,000,6%bondsoutstandingwithanunamortizedpremiumof$9,000.ThebondsmatureonDecember31,2023.Sappacquiredone-thirdofPascalian'sbondsintheopenmarketfor$97,000onJanuary1,2023.Bothcompaniesusestraight-lineamortizationofbonddiscounts/premiums.InterestispaidonDecember31.OnDecember31,2023,thebooksofthetwoaffiliatesheldthefollowingbalances:Pascalian'sbooks6%bondspayable $300,000Premiumonbonds 7,200Interestexpenseﻩ16,200Sapp'sbooksInvestmentinPascalianbondsﻩ$97,600Interestincomeﻩ6,6004)ThegainfromthebondpurchasethatappearedontheDecember31,2023consolidatedincomestatementwasA)$4,320.B)$4,800.C)$5,400.D)$6,000.Answer:DExplanation:D)BookvalueofPascalian'sbondsacquiredbySappequals1/3times($300,000+$9,000) $103,000Less:CostofacquiringPascalianbondsﻩ(97,000)Constructivegainonbondsﻩ$6,000Objective:LO2Difficulty:Moderate5)ConsolidatedInterestExpenseandconsolidatedInterestIncome,respectively,thatappearedontheconsolidatedincomestatementfortheyearendedDecember31,2023wasA)$10,800and$0.B)$10,800and$6,600.C)$0and$0.D)$16,200and$6,600.Answer:AExplanation:A)Consolidatedinterestexpense=$16,200×2/3ﻩ$10,800Objective:LO2Difficulty:Moderateﻬ6)PrussiaCorporationowns80%thevotingstockofStadCorporation.OnJanuary1,2023,Prussiapaid$391,000cashfor$400,000parofStad's10%$1,000,000parvalueoutstandingbonds,dueonApril1,2023.Stad'sbondshadabookvalueof$1,045,000onJanuary1,2023.Straight-lineamortizationisused.Thegainorlossontheconstructiveretirementof$400,000ofStadbondsonJanuary1,2023wasreportedinthe2023consolidatedincomestatementintheamountofA)$14,000.B)$21,600.C)$23,000.D)$27,000.Answer:DObjective:LO2Difficulty:ModerateUsethefollowinginformationtoanswerthequestion(s)below.PfadtInc.had$600,000parof8%bondspayableoutstandingonJanuary1,2023dueJanuary1,2023withanunamortizeddiscountof$12,000.Senatisa90%-ownedsubsidiaryofPfadt.OnJanuary2,2023,SenatCorporationpurchased$150,000parvalueofPfadt'soutstandingbondsfor$152,000.ThebondshaveinterestpaymentdatesofJanuary1andJuly1.Straight-lineamortizationisused.7)Withrespecttothebondpurchase,theconsolidatedincomestatementofPfadtCorporationandSubsidiaryfor2023showedagainorlossofA)$4,500.B)$5,000.C)$10,800.D)$12,000.Answer:BExplanation:B)[($588,000×0.25)-$152,000]Objective:LO2Difficulty:Moderate8)BondInterestReceivablefor2023ofPfadt'sbondsonSenat'sbookswasA)$5,400.B)$6,000.C)$10,800.D)$12,000.Answer:BExplanation:B)[$150,000×8%×1/2]Objective:LO2Difficulty:Moderate

9)BondsPayableappearedintheDecember31,2023consolidatedbalancesheetofPfadtCorporationandSubsidiaryintheamountofA)$398,925.B)$441,000.C)$443,250.D)$450,000.Answer:CExplanation:C)[$591,000×75%]Objective:LO2Difficulty:ModerateUsethefollowinginformationtoanswerthequestion(s)below.PlentyCorporationissuedsixthousand,$1,000par,6%bondsonJanuary1,2023,atpar.InterestispaidonJanuary1andJuly1ofeachyear;thebondsmatureonJanuary1,2023.OnJanuary2,2023,ScrawnCorporation,a75%-ownedsubsidiaryofPlenty,purchased3,000ofthebondsontheopenmarketat102.50.Plenty'sseparatenetincomefor2023includedtheannualinterestexpenseforall3,000bonds.Scrawn'sseparatenetincomefor2023was$400,000,whichincludedthebondinterestreceivedonJuly1aswellastheaccrualofbondinterestrevenueearnedonDecember31.Bothcompaniesusestraight-lineamortizationofbonddiscounts/premiums.10)Whatwastheamountofgainor(loss)fromtheintercompanypurchaseofPlenty'sbondsonJanuary2,2023?A)$(56,250)B)$(75,000)C)$75,000D)$56,250Answer:BExplanation:B)Totalbookvalueacquired=$6,000,000×50% $3,000,000Purchaseprice3,000×$1,025ﻩ3,075,000Lossonconstructiveretirement $75,000Objective:LO2Difficulty:Moderateﻬ11)Ifthebondswereoriginallyissuedat106,and80%ofthemwerepurchasedbyScrawnonJanuary2,2023at98,thegainor(loss)fromtheintercompanypurchasewasA)$(384,000).B)$(211,200).C)$211,200.D)$384,000.Answer:CExplanation:C)BookvalueatJanuary2,2023equals$6,360,000minus$216,000=ﻩ$6,144,000Percentageofbondsacquired 80%Equalsbookvalueacquired 4,915,200Purchaseprice4,800bonds×$980=ﻩ4,704,000Gainonconstructiveretirement=ﻩ$211,200Objective:LO2Difficulty:Moderate12)Ifthebondswereoriginallyissuedat103,and70%ofthemwerepurchasedonJanuary2,2023at104,theconstructivegainor(loss)onthepurchasewasA)$(142,800).B)$(42,000).C)$42,000.D)$142,800.Answer:AExplanation:A)BookvalueatJanuary2,2023equals$6,180,000minus$144,000ﻩ$6,036,000Percentageofbondsacquiredﻩ70%Equalsbookvalueacquired 4,225,200Purchaseprice4,200bonds×$1,040 4,368,000Lossonconstructiveretirement $142,800Objective:LO2Difficulty:Moderate13)Usingtheoriginalinformation,theamountofconsolidatedInterestExpensefor2023wasA)$135,000.B)$180,000.C)$270,000.D)$360,000.Answer:BExplanation:B)($6,000,000-$3,000,000)×6%Objective:LO2Difficulty:Moderate

14)Usingtheoriginalinformation,thebalancesfortheBondsPayableandBondInterestPayableaccounts,respectively,ontheconsolidatedbalancesheetforDecember31,2023wereA)$3,000,000and$90,000.B)$3,000,000and$180,000.C)$6,000,000and$90,000.D)$6,000,000and$180,000.Answer:AExplanation:A)Bondspayable$6,000,000minusbondsheldbyScrawnof$3,000,000.InterestaccruedonDecember31,2023willbetheinterestonbondsheldbynon-affiliatesor$3,000,000×6%×1/2yearObjective:LO2,3Difficulty:Moderate15)Usingtheoriginalinformation,theeliminationentriesontheconsolidationworkingpaperspreparedonDecember31,2023includedatleastA)debittoBondInterestExpensefor$360,000.B)credittoBondInterestExpensefor$180,000andadebittoBondInterestPayablefor$90,000.C)credittoBondInterestReceivablefor$180,000.D)debittoBondInterestRevenuefor$360,000.Answer:BObjective:LO2Difficulty:Moderate16)Noconstructivegainorlossarisesfromthepurchaseofanaffiliate'sbondsiftheA)affiliateisa100%-ownedsubsidiary.B)bondsarepurchasedatbookvalue.C)bondsarepurchasedwitharm's-lengthbargainingfromoutsideentities.D)gainorlosscannotbereasonablyestimated.Answer:BObjective:LO1Difficulty:Easy17)Thereareseveraltheoriesforallocatingconstructivegainsorlossesbetweenpurchasingandissuingaffiliates.TheAgencyTheoryA)doessobasedontheparvalueofthebondspurchased.B)assignstheentireconstructivegainorlosstotheparentbasedontheircontrolofthedecisiontopurchasethebonds.C)assignstheentireconstructivegainorlosstothesubsidiarybasedontheneedtohavethenoncontrollinginterestshareintheretirementofthedebt.D)assignstheentireconstructivegainorlosstowhichevercompanyissuedthebonds.Answer:DObjective:LO1Difficulty:Easyﻬ18)PickleIncorporatedacquireda$10,000bondoriginallyissuedbyits80%-ownedsubsidiaryonJanuary2,2023.Thebondwasissuedinaprioryearfor$11,250,maturesJanuary1,2023,andpays9%interestatDecember31.Thebond'sbookvalueatJanuary2,2023is$10,625,andPicklepaid$9,500topurchaseit.Straight-lineamortizationisusedbybothcompanies.Howmuchinterestincomeshouldbeeliminatedin2023?A)$720B)$800C)$900D)$1,000Answer:DExplanation:D)$9,500-$10,000=discounttoamortizeasinterestexpenseover5years,or$100peryear+$900paidbyissuer.Objective:LO2,3Difficulty:ModerateUsethefollowinginformationtoanswerthequestion(s)below.PoeCorporationownsan80%interestinSeriCompanyacquiredatbookvalueseveralyearsago.OnJanuary2,2023,Seripurchased$100,000parofPoe'soutstanding10%bondsfor$103,000.ThebondswereissuedatparandmatureonJanuary1,2023.Straight-lineamortizationisused.SeparateincomesofPoeandSerifor2023are$350,000and$120,000,respectively.PoeusestheequitymethodtoaccountfortheinvestmentinSeri.19)Controllinginterestshareofconsolidatednetincomefor2023wasA)$443,600.B)$444,000.C)$444,400.D)$448,000.Answer:BExplanation:B)Poe'sseparateincome $350,000IncomefromSeri($120,000×80%)ﻩ96,000Less:LossonconstructiveretirementofPoebonds (3,000)Plus:Piecemealrecognitionoftheconstructiveloss($3,000/3years) 1,000Controllinginterestshare $444,000Objective:LO4Difficulty:Moderate20)Noncontrollinginterestsharefor2023wasA)$23,000.B)$23,600.C)$24,000.D)$24,400.Answer:CExplanation:C)SincePoeistheissuingentity,thegainorlossisnotallocatedtothenoncontrollinginterest.Thenoncontrollinginterestshareis($120,000×20%)=$24,000.Objective:LO4Difficulty:ModerateExercises1)SeparatecompanyandconsolidatedincomestatementsforPittaandSojournCorporationsfortheyearendedDecember31,2023aresummarizedasfollows:ﻩPittaﻩSoujourn ConsolidatedSalesRevenue $500,000 $100,000ﻩ$600,000IncomefromSojourn 19,900 ﻩBondinterestincomeﻩﻩ6,000 Gainonbondretirement ﻩ3,000Totalrevenuesﻩ519,900 106,000 603,000 ﻩCostofsales $280,000ﻩ$50,000 $330,000Bondinterestexpense 9,000 3,600Otherexpenses 120,900ﻩ31,000 151,900Totalexpensesﻩ409,900 81,000ﻩ485,500Consolidatednetincomeﻩ 117,500Noncontrollinginterestshareﻩ 7,500SeparatenetincomeandControl.interestshareinconsolidatednetincome $110,000ﻩ$25,000ﻩ$110,000Theinterestincomeandexpenseeliminationsrelatetoa$100,000,9%bondissuethatwasissuedatparvalueandmaturesonJanuary1,2023.OnJanuary2,2023,aportionofthebondswaspurchasedandconstructivelyretired.Required:Answerthefollowingquestions.1.ﻩWhichcompanyistheissuingaffiliateofthebondspayable?2. Whatisthegainorlossfromtheconstructiveretirementofthebondspayablethatisreportedontheconsolidatedincomestatementfor2023?3. WhatportionofthebondspayableisheldbynonaffiliatesatDecember31,2023?4. IsSojournawholly-ownedsubsidiary?Ifnot,whatpercentagedoesPittaown?5. Doesthepurchasingaffiliateusestraight-lineoreffectiveinterestamortization?6. ExplainthecalculationofPitta's$19,900incomefromSojourn.

Answer:1. Pittaistheissuingaffiliate.2.ﻩEffectonconsolidatednetincome: Gainonconstructiveretirementofbondsﻩ$3,0003. PercentofbondsheldbynonaffiliatesatDecember31,2023ﻩis40%,computedas$3,600consolidatedinterestexpensedividedby$9,000interestexpenseofPitta.4. Sojournispartiallyownedasevidencedbythenoncontrollinginterestshare.Theownershippercentageis70%($7,500noncontrollinginterestsharedividedby$25,000incomeofSojourn=30%noncontrollinginterest.)5. Straight-lineamortization $100,000par×60%purchased $60,000 Purchaseprice5yearsbeforematurity 57,000ﻩGainﻩ3,000 Nominalinterest($60,000×9%)ﻩ$5,400ﻩDiscountamortization($3,000/5years)ﻩ600ﻩBondinterestincome $6,0006. Pitta'sincomefromSojourn ShareofSojourn'sreportedincome ($25,000×70%)= $17,500 Add:Constructivegain 3,000ﻩLess:Piecemealrecognitionofconstructive gain (600)ﻩIncomefromSojournﻩ$19,900Objective:LO1,2,4Difficulty:Moderateﻬ2)PlattsIncorporatedpurchased80%ofScarabCompanyseveralyearsagowhenthefairvalueequaledthebookvalue.OnJanuary1,2023,Scarabhas$100,000of8%bondsthatwereissuedatfacevalueandhavefiveyearstomaturity.InterestispaidannuallyonDecember31.BothPlattsandScarabwouldusethestraight-linemethodtoamortizeanypremiumordiscountincurredintheissuanceorpurchaseofbonds.OnJanuary1,2023,PlattspurchasedallofScarab'sbondsfor$96,000.Required:1.ﻩPreparethejournalentriesin2023thatwouldberecordedbyPlattsandScarabontheirseparatefinancialrecords.2. PreparetheconsolidatingworkingpaperentriesrequiredfortheyearendingDecember31,2023.Answer:Requirement1:Plattsentries:1/1/11 Investmentinbondsﻩ$96,000ﻩﻩCash ﻩ$96,00012/31/11 Cash 8,000ﻩ Interestincome ﻩ8,000 Investmentinbonds 1,000 ﻩInterestincomeﻩ 1,000Scarabentries:12/31/11ﻩInterestexpense 8,000 ﻩCash 8,000Requirement2:Consolidatingentries:12/31/11ﻩBondspayable 100,000 ﻩInvestmentinbonds 97,000 ﻩGainonretirementofdebt ﻩ3,000 Interestincome 9,000 Interestexpenseﻩﻩ8,000 Gainonretirementofdebt 1,000Objective:LO2,3Difficulty:Moderate

3)PakaCorporationownsan80%interestinSandraCompany.PakaacquiredSandra'sbondsonJanuary2,2023.ThefollowinginformationisfromtheadjustedtrialbalancesatDecember31,2023,atwhichtimethebondshavethreeyearstomaturity.ThebondshaveinterestpaymentdatesofJanuary1andJuly1.Straight-lineamortizationisusedbybothcompanies. PakaﻩSandraInvestmentinSandraBonds,$100,000par 98,5007%Bondspayable,$200,000 ﻩ200,000Bondpremium ﻩ6,000Interestexpense ﻩ12,000Interestreceivable 7,000Interestincome 7,500Interestpayableﻩ 7,000Required:PreparethenecessaryconsolidationworkingpaperentriesonDecember31,2023withrespecttotheintercompanybonds.Answer:2023 DebitﻩCredit12/31ﻩBondInterestPayable 7,000 ﻩBondInterestReceivableﻩﻩ7,00012/31ﻩBondsPayableﻩ100,000ﻩInterestIncome 7,500 Bondpremiumﻩ3,000ﻩﻩInterestExpense(50%owned)ﻩﻩ6,000 InvestmentinSandra'sBonds 98,500 ﻩGainonretirementofbonds ﻩ6,000 SupportingComputations:ﻩCostofbondstoPaka($98,500-$500) $98,000 Bookvalueacquired1/1/2023whereﻩ$2,000peryearisamortized ($200,000+$8,000)×50%= ﻩ104,000ﻩGainonconstructivebondretirementﻩ $6,000Objective:LO2,3Difficulty:Moderateﻬ4)PheasantCorporationowns80%ofSalCorporation'soutstandingcommonstockthatwaspurchasedatbookvalueequaltofairvalueonJanuary1,2023.Additionalinformation:1. Pheasantsoldinventoryitemsthatcost$3,000toSalduring2023for$6,000.One-halfofthismerchandisewasinventoriedbySalatyear-end.AtDecember31,2023,SalowedPheasant$2,000onaccountfromtheinventorysales.NootherintercompanysalesofinventoryhaveoccurredsincePheasantacquireditsinterestinSal.2. Pheasantsoldequipmentwithabookvalueof$5,000anda5-yearusefullifetoSalfor$10,000onDecember31,2023.TheequipmentremainsinusebySalandisdepreciatedbythestraight-linemethod.Theequipmenthasnosalvagevalue.3.ﻩOnJanuary2,2023,Salpaid$10,800for$10,000parvalueofPheasant's10-year,10%bonds.Thesebondswereoriginallysoldatparvalue,andhaveinterestpaymentdatesofJanuary1andJuly1,andmatureonJanuary1,2023.Straight-lineamortizationhasbeenappliedbySaltothePheasantbondinvestment.4. PheasantusestheequitymethodinaccountingforitsinvestmentinSal.

Required:CompletetheworkingpaperstoconsolidatethefinancialstatementsofPheasantCorporationandSalfortheyearendedDecember31,2023.ﻬAnswer:Objective:LO2,3Difficulty:Difficult

5)Phaunapaid$120,000forits80%interestinSchrubonJanuary1,2023whenSchrubhad$150,000oftotalstockholders'equity.OnJanuary1,2023,Phaunapurchased$50,000ofSchrubCorporation's8%bondsfor$48,000.Atthattime,$100,000ofbondshadbeenissuedbySchrub,andunamortizedpremiumwas$2,000.ThebondspayinterestonJune30andDecember31andmatureonDecember31,2023.BothPhaunaandSchrubusestraight-lineamortization.PhaunausestheequitymethodofaccountingforitsinvestmentinSchrub.Required:Prepareeliminating/adjustingentriesforthebondsontheconsolidatingworkpapersfortheyearendedDecember31,2023.Answer:12/31/2023Interestincome(8%×$50,000)+($2,000/5)4,400 Interestexpense(8%×$50,000)-($1,000/5) ﻩ3,800ﻩGainonretirementofbondsﻩﻩ600Bondspayableﻩ50,000Premiumonbondspayableﻩ800 Bondinvestment ﻩ48,400ﻩGainonretirementofbondsﻩﻩ2,400Premiumonbondspayable:$1,000-$1,000/5=$800Bondinvestment:$48,000+$2,000/5=$48,400 Supportingcomputations:ﻩBookvalueofbondsﻩ($102,000×50%) $51,000ﻩCostofacquiring$50,000par (48,000)ﻩConstructivegain 3,000 Piecemealrecognitionofgain (600)ﻩUnrecognizedatDecember31,2023 $2,400Objective:LO2,3Difficulty:Difficult

6)PelamiCorporationownsa90%interestinSunbirdCorporation.AtDecember31,2023,Sunbirdhad$3,000,000ofparvalue6%bondsoutstandingwithanunamortizedpremiumof$30,000.ThebondshaveinterestpaymentdatesofJanuary1andJuly1andmatureonJanuary1,2023.OnJanuary2,2023,Pelamipurchased$1,200,000parvalueofSunbird'soutstandingbondsfor$1,210,000.Assumestraight-lineamortization.Required:PreparethenecessaryconsolidationworkingpaperentrieswithrespecttotheintercompanybondsfortheyearendingDecember31,2023.Answer:2023ﻩﻩ Debit Credit12/31ﻩBondInterestPayable 36,000 BondInterestReceivable ﻩ36,00012/31ﻩPremiumonBondsPayable 9,000 BondsPayableﻩ1,200,000 InterestRevenueﻩ69,500ﻩﻩInterestExpenseﻩ 69,000ﻩ InvestmentinSunbirdBondsﻩ 1,207,500ﻩ GainonRetirementofBondsﻩ 2,000 SupportingComputations:ﻩCostofbondstoPelami $1,210,000 Bookvalueacquiredﻩ($3,000,000+$30,000)×40%=ﻩﻩ1,212,000 Gainonconstructivebondretirementﻩ $2,000 4yearsremainingﻩPremiumonBondPayableﻩ $30,000x3/4×40% =ﻩ$9,000 ﻩInterestExpense $1,200,000×6%ﻩ=ﻩ$72,000ﻩLess:$30,000×1/4×40%ﻩ= $3,000 ﻩﻩﻩ$69,000 InterestRevenue $72,000-($10,000×1/4)ﻩ=ﻩ$69,500Objective:LO2,3Difficulty:Moderateﻬ7)Spottisa75%-ownedsubsidiaryofPenthal.OnJanuary1,2023,Spottissued$900,000of$1,000faceamount8%bondsatpar.ThebondshaveinterestpaymentsonJanuary1andJuly1ofeachyearandmatureonJanuary1,2023.OnJuly2,2023,Penthalpurchasedall900bondsontheopenmarketfor$1,020perbond.Bothcompaniesusestraight-lineamortization.Required:Withrespecttothebonds,useGeneralJournalformatto:1. Recordthe2023journalentriesfromJuly1toDecember31onSpott'sbooks.2. Recordthe2023journalentriesfromJuly1toDecember31onPenthal'sbooks.3.ﻩRecordtheeliminationentriesfortheconsolidationworkingpapersfortheyearendingDecember31,2023.Answer:Requirement1Date2023ﻩAccountName DebitﻩCreditSpott'sbooksJul01 BondInterestExpense 36,000 Cash($900,000×8%×½) ﻩ36,000Dec31ﻩBondInterestExpenseﻩ36,000ﻩ BondInterestPayableﻩ 36,000Requirement2Penthal'sbooksJul02 InvestmentinSpottBondsﻩ918,000 Cashﻩ 918,000Dec31 BondInterestReceivable 36,000ﻩﻩBondInterestRevenue 32,400ﻩﻩInvestmentinSpottBondsﻩﻩ3,600Requirement3:ConsolidatedWorkingPapersDec31 BondInterestPayableﻩ36,000ﻩ BondInterestReceivable ﻩ36,000Dec31ﻩBondsPayableﻩ900,000 LossonBondsﻩ18,000 BondInterestRevenueﻩ32,400 BondInterestExpense ﻩ36,000ﻩ InvestmentinSpottBonds ﻩ914,400InterestRevenue:($900,000×8%×1/2)-($18,000premium/5periods)=$32,400Objective:LO2,3Difficulty:Moderateﻬ8)SnackleInc.isa90%-ownedsubsidiaryofPashaCorp.OnJanuary1,2023,Snackleissued$400,000of$1,000faceamount8%bondsat$964perbond.InterestispaidonJanuary1andJuly1ofeachyearandcoverstheprecedingsixmonths.OnJuly2,2023,Pashapurchasedall400bondsontheopenmarketfor$1,030perbond.ThebondsmatureonDecember31,2023.Bothcompaniesusestraight-lineamortization.Required:Withrespecttothebonds,useGeneralJournalformatto:1.ﻩRecordthe2023journalentriesfromJuly1toDecember31onPasha'sbooks.2. Recordthe2023journalentriesfromJuly1toDecember31onSnackle'sbooks.3.ﻩRecordtheeliminationentriesfortheconsolidationworkingpapersfortheyearendingDecember31,2023.Answer:Date2023ﻩAccountName Debit CreditPasha'sbooksJul02 InvestmentinSnackleBondsﻩ412,000 Cash 412,000ﻩﻩ Dec31ﻩBondInterestReceivableﻩ16,000 ﻩﻩBondInterestRevenue 12,000 InvestmentinSnackleBonds ﻩ4,000ﻩ Snackle'sbooksJul01 BondInterestExpenseﻩ18,400 ﻩCash 16,000 ﻩDiscountonBondsPayable ﻩ2,400 ﻩ Dec31ﻩBondInterestExpenseﻩ18,400 ﻩBondInterestPayable 16,000ﻩﻩDiscountonBondsPayable 2,400ConsolidatedWorkingPapersDec31 BondInterestPayable 16,000 ﻩﻩBondInterestReceivableﻩﻩ16,000ﻩ ﻩDec31ﻩBondsPayableﻩ400,000ﻩﻩLossonBondsﻩ19,200ﻩ BondInterestRevenue 12,000ﻩ BondInterestExpenseﻩ 18,400ﻩﻩDiscountonBondsPayableﻩ 4,800ﻩﻩInvestmentinSnackleBonds 408,000(Bookvalueofbonds$392,800-purchasecost$412,000=$19,200loss)Objective:LO2,3Difficulty:Moderateﻬ9)PopcornCorporationowns90%oftheoutstandingvotingcommonstockofSaltyCorporation.OnJanuary1,2023,Saltyissued$1,000,000faceamountof12%,$1,000bondspayableat119.20.ThebondspayinterestonJanuary1andJuly1ofeachyearandmatureonJanuary1,2023.OnJuly2,2023,Popcornpurchasedalloftheoutstandingbondsatapriceof107.50.Bothcompaniesusestraight-lineamortization.Required:1. PreparethejournalentriesforJuly1,2023throughDecember31,2023forPopcornCorporation.2..ﻩPreparethejournalentriesforJuly1,2023throughDecember31,2023forSaltyCorporation.3.ﻩPreparetheeliminationentriesnecessaryontheconsolidatingworkingpapersfortheyearendedDecember31,2023.Answer:Requirement1July2,2023:Bondinvestmentﻩ1,075,000ﻩCash 1,075,000December31,2023:Interestreceivable 60,000ﻩInterestrevenueﻩ 60,000($1,000,000×12%×1/2)Interestrevenue 15,000 Bondinvestmentﻩﻩ15,000($75,000/5)Requirement2July1,2023:Interestexpense 60,000 Cash ﻩ60,000Premiumonbondspayableﻩ12,000ﻩInterestexpense 12,000December31,2023:Interestreceivableﻩ60,000 Interestrevenueﻩ 60,000($1,000,000×12%×1/2)IPremiumonbondspayableﻩ12,000 Interestexpense 12,000

Requirement3:December31,2023:Bondspayable 1,000,000Premiumonbondspayable 48,000Lossonretirementofbondsﻩ12,000 Bondinvestmentﻩ 1,060,000Bondinvestment:($1,075,000-$15,000)Lossonretirementofbonds 3,000Interestrevenu 45,000 Interestexpense ﻩ48,000Interestpayableﻩ60,000 Interestreceivable 60,000July2,2023Paid $1,075,000Bookvalueofbondsﻩ1,060,000[$1,000,000+($12,000×5)]Lossonretirementﻩ$15,000Objective:LO2,3Difficulty:Moderateﻬ10)PeterCorporationownsa70%interestinSundownCorporationacquiredseveralyearsagoatapriceequaltobookvalueandfairvalue.OnDecember31,2023,Sundownhad$300,000parof6%bondsoutstandingwithanunamortizedpremiumof$30,000.ThebondsmatureinfiveyearsandpayinterestonJanuary1andJuly1.OnJanuary2,2023,Peteracquiredone-thirdofSundown'sbondsfor$117,000.PeterandSundownusestraight-lineamortization.Sundownreportsnetincomeof$250,000for2023.Peterusestheequitymethodtoaccountfortheinvestment.Required:1.ﻩCalculatePeter'sincomefromSundownfor2023.2. Calculatethenoncontrollinginterestsharefor2023.Answer:Preliminarycomputations:Bookvalueofbonds$330,000×1/3= $110,000Costofbondsﻩ117,000Lossonconstructiveretirement $7,000Requirement1:IncomefromSundown:ShareofSundown'sincome($250,000×70%)ﻩ$175,000Less:Constructiveloss($7,000×70%) (4,900)Plus:Piecemealrecognitionofloss($7,000/5years)×70%ﻩ980IncomefromSundown $171,080Requirement2:Noncontrollinginterestshare:Sundown'sreportedincome $250,000Less:Constructivelossonbonds (7,000)Plus:Piecemealrecognitionofloss 1,400Equals:Adjustedreportedincome $244,400Noncontrollingpercentage 30%Noncontrollinginterestshareﻩ$73,320Objective:LO3,4Difficulty:Moderateﻬ11)PongoCompanyhas$2,000,000of6%bondsoutstandingonDecember31,2023withunamortizedpremiumof$60,000.ThesebondspayinterestsemiannuallyonJanuary1andJuly1andmatureonJanuary1,2023.Straight-lineamortizationisused.SyringInc.,90%-ownedsubsidiaryofPongo,buys$1,000,000parvalueofPongo'soutstandingbondsinthemarketfor$980,000onJanuary2,2023.Thereisonlyoneissueofoutstandingbondsoftheaffiliatedcompaniesandtheyhaveconsolidatedfinancialstatements.Fortheyear2023,Pongohasincomefromitsseparateoperations(excludinginvestmentincome)of$3,000,000andSyringreportsnetincomeof$200,000.Pongousestheequitymethodtoaccountfortheinvestment.Required:Determinethefollowing:1.ﻩNoncontrollinginterestsharefor2023.2.ﻩControllingshareofconsolidatednetincomeforPongoCompanyandsubsidiaryfor2023.Answer:Requirement1Noncontrollinginterestshare($200,000×10%)

温馨提示

  • 1. 本站所有资源如无特殊说明,都需要本地电脑安装OFFICE2007和PDF阅读器。图纸软件为CAD,CAXA,PROE,UG,SolidWorks等.压缩文件请下载最新的WinRAR软件解压。
  • 2. 本站的文档不包含任何第三方提供的附件图纸等,如果需要附件,请联系上传者。文件的所有权益归上传用户所有。
  • 3. 本站RAR压缩包中若带图纸,网页内容里面会有图纸预览,若没有图纸预览就没有图纸。
  • 4. 未经权益所有人同意不得将文件中的内容挪作商业或盈利用途。
  • 5. 人人文库网仅提供信息存储空间,仅对用户上传内容的表现方式做保护处理,对用户上传分享的文档内容本身不做任何修改或编辑,并不能对任何下载内容负责。
  • 6. 下载文件中如有侵权或不适当内容,请与我们联系,我们立即纠正。
  • 7. 本站不保证下载资源的准确性、安全性和完整性, 同时也不承担用户因使用这些下载资源对自己和他人造成任何形式的伤害或损失。

评论

0/150

提交评论