On 12/31/2020, a parent company purchased the bonds of its subsidiary from the bondholders of the subsidiary for $102,000 cash. The carrying value of the bonds on the general ledger of the subsidiary was $107,000. What amounts will appear on the parent's consolidated balance sheet for 2020? Investment Bonds A) In Bonds Payable $0 $0 Investment Bonds B) In Bonds Payable $102,000 $0 Investment Bonds In Bonds Payable $107,000 $102,000 Investment Bonds D) In Bonds Payable $102,000 $107,000 Investment Bonds E) In Bonds Payable $0 $107,000

On 12/31/2020, a parent company purchased the bonds of its subsidiary from the bondholders of the subsidiary for $102,000 cash. The carrying value of the bonds on the general ledger of the subsidiary was $107,000. What amounts will appear on the parent's consolidated balance sheet for 2020? Investment Bonds A) In Bonds Payable $0 $0 Investment Bonds B) In Bonds Payable $102,000 $0 Investment Bonds In Bonds Payable $107,000 $102,000 Investment Bonds D) In Bonds Payable $102,000 $107,000 Investment Bonds E) In Bonds Payable $0 $107,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 1MC

See similar textbooks

Similar questions

Oblivion Company purchased bonds at a discount of P100,000. Subsequently, the entity sold bonds at a premium of P140,000. During the period that the entity held this investment, amortization of the discount amounted to P20,000. What amount should be reported as gain on sale of bonds? a.120,000b.220,000c.240,000d.260,000
on may 21 1020, an entity acquired P 1,600,000 9% bonds at 97 plus accrued interest.Interest bond is paayable semiannually on march 1 and september 1 and bonds mature on september 1, 2023. the entity intended to hold these bond until they mature. Due to an isolated events that is beyond the entity control, the entity sold bonds of 480,000 for 103 plus accrued interest on MAy 1, 2021. On July 1, 2022, bonds of 640,000 were exchanged for 90,000 ordinanry shares, to par value, qouted on the market on this date 8 per share. Interest was received on bonds to date of exchage. On september 1, 2023, remaining bonds were redeemed and accrued interest was received. use straight line method. compute for the total interest income for 2020.
On October 1, 2021, POGI Company purchased 4,000 of the P1,000 face amount, 10% bonds of GANDA Company for P4,462,500 which included accrued interest of P200,000. The bonds which mature on January 1, 2028, pay interest semiannually on January 1 and July 1. The entity used the straight-line method of amortization and appropriately recorded the bonds as financial asset at amortized cost. What is the carrying amount of the bonds on December 31, 2021? Your answer
On August 1, 2025, Ivanhoe Company acquired 1220, $1000, 9% bonds at 97 plus accrued interest. The bonds were dated May 1, 2025, and mature on April 30, 2030, with interest paid each October 31 and April 30. The bonds will be added to Ivanhoe's available- for-sale portfolio. The entry to record the purchase of the bonds on August 1, 2025 is Debt Investments Interest Receivable Cash Debt Investments Cash 1183400 27450 Debt Investments Interest Revenue Cash 1210850 Debt Investments Interest Revenue Discount on Debt Investments Cash 1220000 27450 1183400 27450 1210850 1210850 36600 1210850 1210850
On August 1, 2025, Sandhill Company acquired $460000 face value 9% bonds of Wildhorse Corporation at 103 plus accrued interest. The bonds were dated May 1, 2025, and mature on April 30, 2030, with interest payable each October 31 and April 30. The bonds will be held to maturity. What entry should Sandhill make to record the purchase of the bonds on August 1, 2025? Debt Investments Interest Revenue Cash Debt Investments Premium on Bonds Cash Debt Investments Cash Debt Investments Interest Revenue Cash 473800 10350 460000 24150 484150 484150 484150 484150 484150 10350 473800
On October 1, 2021, POGI Company purchased 4,000 of the P1,000 face amount, 10% bonds of GANDA Company for P4,462,500 which included accrued interest of P200,000. The bonds which mature on January 1, 2028, pay interest semiannually on January 1 and July 1. The entity used the straight-line method of amortization and appropriately recorded the bonds as financial asset at amortized cost. What is the carrying amount of the bonds on December 31, 2021?
On October 1, 2021, POGI company purchased 4000 of the P1000 face amount, 10% bonds of GANDA Company for P4,462,500 which included accrued interest of P200,000. The bonds which mature on January 1, 2028, pay interest semiannually on January 1 and July 1. The entity used the straight line method of amortization and approprietely recorded the bonds as financial asset at amortized cost. What is the carrying amount of the bonds on December 31, 2021?
3. On October 1, Dennis Company purchased P200,000 face value 12% bonds for 98 plus accrued interest and brokerage fees and classified them as held-to-maturity securities. Interest is paid semiannually on January 1 and July 1. Brokerage fees for this transaction were P700. At what amount should this acquisition of bonds be recorded? a. P196,000 b. P196,700 c. P202,000 d. P202,700
On October 1, 2021, Valorant Company purchased a debt security having a face value of P3,000,000 with an interest rate of 10% for P3,200,000 including the accrued interest. A total of P50,000 was incurred and paid by Genshin Company which is in relation to the acquisition of the debt instrument. Valorant Company has a business model for fair value through other comprehensive income. The bonds mature on January 1, 2026 and pay interest semi-annually on January 1 and July 1. On December 31, 2021, the bonds had a market value of P3,400,000. What amount should the investment be initially recorded? A.P3,175,000B.P3,200,000C.P3,250,000D.P3,125,000
Use the following information on a company's investments in debt securities to answer the following question. The company's accounting year ends December 31. Investment Date of Acquisition 9/20/23 $38,000 Colt Compan y bonds Cost Fair Value Date Sold Selling 12/31/23 Price $37,000 2/10/24 $42,000 Dana Compan y bonds 10/2/23 14,000 14,200 1/17/24 13,000 If the above investments are categorized as available-for-sale securities, what is the net effect on 2024 other comprehensive income? Select one: a. $ 800 increase b. $0 c. $3,800 increase d. $ 800 decrease
On 1/1/2019, Allie Company issued bonds payable of $500,000 at 8%. It was sold at $464,000 with effective interest rate of 9%. On 1/1/2020, Choco purchased all of Allie's bond for $532,000 cash with effective interest at 7% and Allie's bonds payable has been effectively retired. 3) Compute the consolidated gain or loss on a consolidated income statement for at the end of 2020
ABC Company, a holder of P1,000,000 XYZ Company bonds, collected the interest due on March 31, year 1, and then sold the bonds to W, Inc. for P975,000. On that date, XYZ. a 75% owner of W had P1.075.000 carrying amount for the bonds. What was the effect of W's purchase of XYZ's bond on the retained earnings amount reported in XYZ's March 31, year 1 consolidated balance sheet? The answer is 10 0,000 increase. Can you please show me how it was solved?