Question: Assume the same facts as in E8-1 and prepare entries using straight-line amortization of bond discount or premium. In E8-1 Lamar Corporation owns 60 percent

Assume the same facts as in E8-1 and prepare entries using straight-line amortization of bond discount or premium.

In E8-1

Lamar Corporation owns 60 percent of Humbolt Corporation’s voting shares. On January 1,20X2, Lamar Corporation sold $150,000 par value, 6 percent first mortgage bonds to Humbolt for $156,000. The bonds mature in 10 years and pay interest semiannually on January 1 and July 1.

Step by Step Solution

★★★★★

3.43 Rating (185 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a Journal entries recorded by Humbolt Corporation January 1 20X2 Investment in Lamar C... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

297-B-A-G-F-A (2354).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Assume the same facts as in QS 15-7 except that the stock acquired represents 40% of TKR Corp.s outstanding stock. Also assume that TKR Corp. paid a $125,000 dividend on November 1, 2011, and...

Assume the same facts as in QS 9-3, except that Wecker estimates uncollectibles as 1.0% of sales. Prepare the December 31 year-end adjusting entry for un-collectibles.

Assume the same facts as in Problem 6-53, except that the income from the sale of rabbits is $1,200. In problem 6-53 Chuck, a dentist, raises prize rabbits for breeding and showing purposes. Assume...

E81A Bond Sale from Parent to Subsidiary (Straight-Line Method) LO 82 Assume the same facts as in E8-1 and prepare entries using straight-line amortization of bond discount or premium. Pretzel...

Assume the same facts as in E8-3 but prepare entries using straight-line amortization of bond discount or premium. Purse Corporation owns 70 percent of Scarf Companys voting shares. On January 1,...

Assume the same facts as in E8-3 but prepare entries using straight-line amortization of bond discount or premium. In E8-3 Wood Corporation owns 70 percent of Carter Company's voting shares. On...

Assume the same facts as in E81 and prepare entries using straight-line amortization of bond discount or premium. Data from Exercises 1 Pretzel Corporation owns 60 percent of Stick Corporations...

Assume the same facts as in E8-13 but prepare entries using straight-line amortization of bond discount or premium. In E8-13 Stang Corporation issued to Bradley Company $400,000 par value, 10-year...

Stallion Corporation sold $170,000 par value, 10-year first mortgage bonds to Pony Corporation on January 1,205. The bonds bear a nominal interest rate of 8 percent, pay interest semiannually on...

Stang Corporation issued to Bradley Company S400,000 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....

Let G =C\ { 0}. Note that u(x, y) = log(x + y2) is harmonic in G. Verify by direct use of the line integral given in class, i.e. v(x, y) = f(-uydx+u,dy), that to within an arbitrary real constant,...

Which of the following best describes the role of analytical procedures near the end of the audit engagement? a. To identify possible deficiencies in the clients internal control over financial...

Did you get more than 5 0 % yield for the overall process? If yes, what was the key to the higher yield? If not, what is the most likely source of loss?

Arnell Industries has $10 million in permanent debt outstanding. The firm will pay interest only on this debt. Arnells marginal tax rate is expected to be 35% for the foreseeable future. a. Suppose...

Jersey Corporation acquired 100 percent of Lime Company on January 1, 20X7, for $203,000. The trial balances for the two companies on December 31, 20X7, included the following amounts: Additional...

Alpha Inc has just issued a 15-year bond with $1,000 par value, which pays the amount below as annual coupon (interest). The market price of the bond and your required rate of return are also...

Need help with this Allison and Leslie, who are twins, just received $50,000 each for their 23th birthday. They both have aspirations to become millionaires. Each plans to make a $5,000 annual...

the answers inputted are corrext. looking for the empty 3 Suppose your company needs to raise $41.6 million and you want to issue 20 -year bonds for this purpose. Assume the required return on your...