Questions from Financial Accounting

Q: Assume the same facts as in E8-12 but prepare entries

Assume the same facts as in E8-12 but prepare entries using straight-line amortization of bond discount or premium. Data from E8-12: Bundle Company issued $500,000 par value, 10-year bonds at 104 on...

Q: Parent Company holds 80 percent ownership of Subsidiary Company, and Subsidiary

Parent Company holds 80 percent ownership of Subsidiary Company, and Subsidiary Company owns 90 percent of the stock of Tiny Corporation. What effect will $100,000 of unrealized intercompany profits o...

Q: Stang Corporation issued to Bradley Company $400,000 par value

Stang Corporation issued to Bradley Company $400,000 par value, 10-year bonds with a coupon rate of 12 percent on January 1, 20X5, at 105. The bonds pay interest semiannually on July 1 and January 1....

Q: Assume the same facts as in E8-13 but prepare entries

Assume the same facts as in E8-13 but prepare entries using straight-line amortization of bond discount or premium. Data from E8-13: Stang Corporation issued to Bradley Company $400,000 par value, 1...

Q: Explain how a reciprocal ownership arrangement between two subsidiaries could lead the

Explain how a reciprocal ownership arrangement between two subsidiaries could lead the parent company to overstate its income if no adjustment is made for the reciprocal relationship.

Q: Weal Corporation purchased 60 percent of Modern Products Company’s shares on December

Weal Corporation purchased 60 percent of Modern Products Company’s shares on December 31, 20X7, for $210,000. At that date, the fair value of the noncontrolling interest was $140,000...

Q: Assume the same facts as in E8-14 except for the

Assume the same facts as in E8-14 except for the changes in the trial balances and assuming the bonds were sold for $82,000, but prepare entries using straight-line amortization of bond discount or pr...

Q: Porter Company purchased 60 percent ownership of Temple Corporation on January 1

Porter Company purchased 60 percent ownership of Temple Corporation on January 1, 20X1, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 40 percent of...

Q: Blatant Advertising Corporation acquired 60 percent of Quinn Manufacturing Company’s shares on

Blatant Advertising Corporation acquired 60 percent of Quinn Manufacturing Company’s shares on December 31, 20X1, at underlying book value of $180,000. At that date, the fair value o...

Q: Wood Corporation owns 70 percent of Carter Company’s voting shares. On

Wood Corporation owns 70 percent of Carter Company’s voting shares. On January 1, 20X3, Carter sold bonds with a par value of $600,000 at 98. Wood purchased $400,000 par value of the bonds; the remain...