Question: Could you do this but using Effective Interest Method>>>>> Pretzel Corporation owns 60 percent of Stick Corporations voting shares. On January 1, 20X2, Pretzel Corporation

Could you do this but using Effective Interest Method>>>>>

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

Required:

Prepare the journal entries for 20X2 for Stick related to its ownership of Pretzels bonds.

Prepare the journal entries for 20X2 for Pretzel related to the bonds.

Prepare the worksheet consolidation entries needed on December 31, 20X2, to remove the effects of the inter corporate ownership of bonds.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

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

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

ECAR 03100 - Concrete Formwork 03110 - Structural C.I.P. Concrete Formwork 1- Formwork to foundation wall footing 2- Formwork to foundation wall mi 3- Form keyway m 4- Formwork to underside of roof s...

Pretzel Corporation owns 60 percent of Stick Corporation's voting shares. On January 1, 20X2, Pretzel Corporation sold $190,000 par value, 10 percent first mortgage bonds to Stick for $197,000. The...

How did they get either $8,535 or $8,400 for the worksheet elimination entries as the interest expense ? Bond Sale from Parent to Subsidiary (Effective Interest Method) Lamar Corporation owns 60...

Question is half solved please provide the amounts ones are wrong. Pretzel Corporation owns 60 percent of Stick Corporation's voting shares. On January 1, 20X2, Pretzel Corporation sold $185,000 par...

c. Prepare the worksheet consolidation entries needed on December 31, 20X2, to remove the effects of the intercorporate ownership of bonds. (If no entry is required for a transaction/event, select...

Pretzel Corporation owns 60 percent of Stick Corporation's voting shares. On January 1, 20X2, Pretzel Corporation sold $185,000 par value, 8 percent first mortgage bonds to Stick for $191,000. The...

Pretzel Corporation owns 60 percent of Stick Corporation's voting shares. On January 1, 20X2, Pretzel Corporation sold $230,000 par value, 8 percent first mortgage bonds to Stick for $236,000. The...

Pretzel Corporation owns 60 percent of Stick Corporations voting shares. On January 1, 20X2, Pretzel Corporation sold $180,000 par value, 6 percent first mortgage bonds to Stick for $185,000. The...

Pretzel Corporation owns 60 percent of Stick Corporation's voting shares. On January 1, 20X2, Pretzel Corporation sold $150,000 par value, 6 percent first mortgage bonds to Stick for $156,000. The...

Pretzel Corporation owns 60 percent of Stick Corporations voting shares. On January 1, 20X2, Pretzel Corporation sold $205,000 par value, 10 percent first mortgage bonds to Stick for $210,000. The...

Pretzel Corporation owns 60 percent of Stick Corporation's voting shares. On January 1, 20X2, Pretzel Corporation sold $150,000 par value, 6 percent first mortgage bonds to Stick for $156,000. The...

It is not correct to say that matter can neither be created nor destroyed, what must we say instead?

What accounts are used in a periodic inventory system but not in a perpetual inventory system?

What is the greatest value direct from adding some funds to a stock portfolio increase rate of return on the portfolio increase capital gains when interest rate rates rise additional stability from...

1. The International Labour Organization. The International Labour Organization (ILO) has established labor standards for 150 countries represented by the organization. Locate the Web site for the...

9. Assess the strategy of Wal-Mart in China where the company has recognized unions in all 62 stores, to its strategy in the United States, which is to combat any type of union representation.

5. Although multinational corporations seem to be growing in size and influence, what must occur before transnational collective bargaining can be effectively carried out?