Question: skip part E please only do a-d Plug Corporation purchased $100,000 par value bonds of its subsidlary, Spark Company, on December 31,205, from Lemon Corporation.




skip part E please only do a-d
Plug Corporation purchased $100,000 par value bonds of its subsidlary, Spark Company, on December 31,205, from Lemon Corporation. The 10-year bonds bear a 9 percent coupont rate, and spark originally sold them on January 1,203, to Lemon. Interest is paid annually on December 31 . Plug owns 85 percent of the stock of Spark. In preparing the consolidation worksheet at December 31,206, Plug's controller made the following entry to eliminate the effects of the intercorporate bond ownership: Required: With the information given, answer the following questions: a. What amount did Plug pay when it purchased Spark's bonds? b. Prepare the journal entry made by Spark In 206 to record its Interest expense for the year. c. Prepare the journal entry made by Plug in 206 to record its interest income on the Spark bonds that it holds. d. Prepare the consolidation entry to remove the effects of the intercorporate bond ownership in completing a three-part consolidation worksheet at December 31,205. e. Spark reported net income of $77,000 and $97,000 for 205 and 206, respectively. Plug reported Income from its separate - operations of $137,000 and $167,000 for 205 and 206, respectively. What amount of consolidated net income and income to the controlling interest will be reported in the consolidated income statements for 205 and 206 ? Complete this question by entering your answers in the tabs below. What amount did Plug pay when it purchased Spark's bonds? Complete this question by entering your answers in the tabs below. Prepare the journal entry made by Spark in 206 to record its interest expense for the year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account fiel Journal entry worksheet Complete this question by entering your answers in the tabs below. repare the journal entry made by Plug in 206 to record its interest income on the Spark bonds that it holds. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first acunt field. Journal entry worksheet Prepare the consolidation entry to remove the effects of the intercorporate bond ownership in completing a three-part consolic worksheet at December 31,205. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet Record the entry to eliminate the effects of the intercompany ownership in bonds. Notes Enter debits before credits
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