Saturn Corporation issued $300,000 par value 10-year bonds at 107 on January 1, 20X3, which Star Corporation purchased. On July 1, 20X7, Pluto Corporation purchased $120,000 face value of Saturn bonds from Star. The bonds pay 12 percent interest annually on December 31. The preparation of consolidated financial statements for Saturn and Pluto at December 31, 20X9, required the following consolidation entry: Bonds Payable Premium on Bonds Payable Interest Income Investment in Saturn Corporation Bonds. Interest Expense Investment in Saturn Corporation Stock NCI in NA of Saturn Corp. Multiple Choice Based on the information given above, what amount did Pluto pay when it purchased the bonds on July 1, 20X7? $118.020 $118.920 STIL620 120,000 2,520 14,760 $117.220 118,920 13,560 3,120 1,680

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Debt Investment Transactions, Available-for-Sale Valuation Rekya Mart Inc. is a general merchandise retail company that began operations on January 1, Year 1. The following transactions relate to debt investments acquired by Rekya Mart Inc., which has a fiscal year ending on December 31: Year 1   Apr. 1. Purchased $60,000 of Smoke Bay 7%, 10-year bonds at their face amount plus accrued interest of $700. The bonds pay interest semiannually on February 1 and August 1. May 16. Purchased $96,000 of Geotherma Co. 6%, 12-year bonds at their face amount plus accrued interest of $240. The bonds pay interest semiannually on May 1 and November 1. Aug. 1. Received semiannual interest on the Smoke Bay bonds. Sept. 1. Sold $24,000 of Smoke Bay bonds at 104 plus accrued interest of $140. Nov. 1. Received semiannual interest on the Geotherma Co. bonds. Dec. 31 Accrued $840 interest on Smoke Bay bonds. Dec. 31 Accrued $480 interest on Geotherma Co. bonds. Year 2   Feb. 1. Received…

I. Metro Company purchased $500,000, 10%, 5-year bonds on January 1, 20x1, with interest payable on July 1 and January 1. The market interest rate (yield) was 8% for bonds of similar risk and maturity. The market value on December 31, 20x1 was $555,000 and all bonds were sold for $507,500 on January 1, 20x2 after the second payment. Required: compute the bond price on January 1, 20x1, prepare the amortization schedule and record journal entries on January 1, 20x1, July 1, 20x1, December 31, 20x1 and January 1, 20x2 assuming the bond investment is classified as available-for-sale security.

nkt.2   The Parent company issued $500,000 face value 5% 15-year bonds to an unaffiliated party for $515,000 on January 1st 2016. December 31, 2018 the Subsidiary company paid $485,000 to purchase all of the outstanding parent company’s bonds from 3rd parties. • Prepare the entries for the parent and the sub related to the bond transactions (to record the initial issuance, annual interest and the effective retirement)

Entries for Investment in Bonds, Interest, and Sale of Bonds Parilo Company acquired $204,000 of Makofske Company, 6% bonds on May 1, 20Y5, at their face amount. Interest is paid semiannually on May 1 and November 1. On November 1, 20Y5, Parilo sold $44,400 of the bonds for 96. Journalize the entries to record the following under the cost method: If an amount box does not require an entry, leave it blank. Questions are attached with image   Needing answers for questions: B C D