XS FILE Paste G31 HOME Cut E Copy Format Painter Clipboard 1 Topic review 5 2...

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XS FILE Paste G31 HOME Cut E Copy Format Painter Clipboard 1 Topic review 5 2 3 4 Income Statement 5 Sales Cost of Goods Sold INSERT PAGE LAYOUT READY X A 6 7 Gross Profit 8 Income (loss) from Subsidiary 9 Operating & other expenses 10 Bond interest income 11 Bond interest expense FEB Calibri 12 Net Income 13 Income attributable to NCI 14 Income attributable to Controlling Int 15 16 Retained Earnings Statement 17 Beg. Ret. Earn. 18 Net Income 19 Dividends Declared B I 20 Ending Retained Earnings 21 22 Balance Sheet 23 Cash 29 30 Investment in Bond (net) 31 Total Assets 32 33 Accounts Payable 34 Other current liabilities 24 Accounts receivable 25 Inventories 26 Property, Plant & Equipment, net 27 Investment in Subsidiary 28 35 Bond Payable (net) 36 Other long-term liabilites 37 Common Stock 38 APIC 39 Retained Earnings 40 Noncontrolling Interest 41 42 43 Total Liabilities and Equity TR5 + Type here to search Font 11 FORMULAS DATA - A B Parent (61,609) 1,701,938 6,889,800 1,701,938 (340,800) 8,250,938 12,000,000 1,200,000 (8,640,000) (720,000) 3,360,000 203,547 480,000 (1,800,000) (312,000) 1,110,310 2,100,000 3,120,000 12,072,000 846,289 = 1,013,280 1,428,000 1,220,781 1,800,000 663,600 4,872,000 8,250,938 Subsidiary 260,617 387,900 516,000 660,000 1,236,000 1,158,767 19,248,599 3,958,667 REVIEW VIEW DEVELOPER 92,617 Ibond 573,600 600,000 Alignment D 270,000 E 260,617 (24,000) 506,617 19,248,599 3,958,667 Wrap Text *Merge & Center 1,913,650 Ibond 178,800 E 186,000 E 506,617 E 203,547 Consolidation Entries. Dr 92,617 26,062 270,000 1,231,172 178,800 186,000 F G Number O $ % 9 G Cr Number 24,000 E Ibond Ibond 1,158,767 364,800 181,947 93,022 0.000 H G Consolidated Ch6.xlsx -Excel (Product Activation Failed) Normal Conditional Format as Check Cell Formatting Table I J Sub NI K NI to NCI Sub. NI EI Bad Good Explanatory... |Input $ -Amortixation of Gain $ S L 234,555 (31,008) 203,547 26,061.70 Styles M N Neutral Linked Cell 0 P Calculation Note O R FA Insert Delete Format S Cells T T U > AutoSum Fill Clear V Sort & Find & Filter Select Editing W 57F Mostly cloudy Microsoft account X Y 2 Z 90% 5:38 PM 11/16/2023 WAS G FILE Paste HOME INSERT Cut Copy Format Painter Clipboard Available Files G Document Recovery Word has recovered the following files. Save the ones you wish to keep. w 1. Introductory Assignmen... Version created last time t... 9/29/2023 12:19 PM WEnron.docx [Original] Version created last time t... 10/27/2023 4:03 PM Calibri (Body) 11 A A B I U abc X, x Aa A ====A w Chapter 2-461.docx [Orig... Version created last time t... 10/27/2023 5:06 PM w Chapter 3 461.docx [Origi... Version created last time t... 10/27/2023 5:49 PM w Chapter 4-461.docx [Aut... Version created from the I... 10/28/2023 12:39 PM DESIGN w Chapter 4 - 461.docx [Orig... Version created last time t... 10/27/2023 3:44 PM w Practice-Midterm.docx [Ori... Version created last time t... 10/28/2023 3:30 PM w Document1 [Autosaved] Version created from the I... 10/19/2023 9:28 PM w 441 Midterm Note Sheet.d... Version created from the I... 10/30/2023 4:08 PM ? Which file do I want to save? PAGE 1 OF 3 321 WORDS DE PAGE LAYOUT Close Font Aa REFERENCES MAILINGS REVIEW VIEW AL X V Paragraph TOPIC REVIEW 6.5 Amortization tables: Parent Year 12/31/2019 2020 Constructive Retirement of Intercompany Debt-Equity Method Assume that a parent company acquires a 90% interest in its subsidiary on January 1, 2018. On the date of acquisition, the fair value of the 90 percent controlling interest was $594,000 and the fair value of the 10 percent noncontrolling interest was $66,000. On January 1, 2018, the book value of net assets equaled $660,000 and the fair value of the identifiable net assets equaled the book value of identifiable net assets (i.e., there was no AAP or Goodwill). On December 31, 2019, the parent company issued $1,200,000 (face) 6 percent, five-year bonds to an unaffiliated company for $1,251,954 (i.e., the bonds had an effective yield of 5 percent). The bonds pay interest annually on December 31, and the bond premium is a amortized using the straight-lin t-line method. This results in annual bond-payable premium amortization equal to $10,391 per year. On December 31, 2021, the subsidiary paid $1,138,150 to purchase all of the outstanding parent company bonds (i.e., the bonds had an effective yield of 8 percent). The bond discount is amortized using the straight-line method, which results in annual bond- investment discount amortization equal to $20,617 per year. The parent uses the equity method of pre- consolidation investment bookkeeping. The parent and the subsidiary report the following financial statements for the year ended December 31, 2022: 2022 2023 2024 Subsidiary Year 12/31/202: 2022 2023 2024 2021 G Cash payment 72,000 72,000 72,000 72,000 72,000 Cash 72,000 72,000 72,000 Math Type AaBb CcDc AaBbCcDc AaBb C AaBbccc AaB AaBbccc AaBb CcD; AaBb CcD; AaBb CcD; AaBbCcDc AaBb CcD AqBbCcD AABBCCDI AABBCCDI AaBbCcD 1 No Spac... Heading 1 Heading 2 Normal Title Subtitle Subtle Em... Strong Quote Intense Q... Subtle Ref... Intense Re... Book Title Intense E... Emphasis Styles I bond Bonds Payable, net $1,231,172 Bonds investment Amortization 10.391 10,391 10,391 10,391 10,391 Amortization 20,617 20,617 20,617 $1,138,150 (Ctrl) - Ch6.docx - Word (Product Activation Failed) Interest expense 61,609 61.609 61.609 61,609 61,609 Interest income 92,617 92,617 92,617 Carrying amount 1,251,954 1.241.563 1.231,172 1,220,781 1,210,390 1,200,000 Carrying amount 1,138,150 Gain on bond Repurchase 2022 (Consolidation entry) Ibond Bonds Payable, net $1,220,781 Interest Income 92,617 Bonds investment.1.158.767 Interest Expense 61,609 BOY Equity Investment 93,022 93,022 G ? Microsoft account Find c Replace Select Editing X + 79% 5:38 PM 11/16/2023 XS FILE Paste G31 HOME Cut E Copy Format Painter Clipboard 1 Topic review 5 2 3 4 Income Statement 5 Sales Cost of Goods Sold INSERT PAGE LAYOUT READY X A 6 7 Gross Profit 8 Income (loss) from Subsidiary 9 Operating & other expenses 10 Bond interest income 11 Bond interest expense FEB Calibri 12 Net Income 13 Income attributable to NCI 14 Income attributable to Controlling Int 15 16 Retained Earnings Statement 17 Beg. Ret. Earn. 18 Net Income 19 Dividends Declared B I 20 Ending Retained Earnings 21 22 Balance Sheet 23 Cash 29 30 Investment in Bond (net) 31 Total Assets 32 33 Accounts Payable 34 Other current liabilities 24 Accounts receivable 25 Inventories 26 Property, Plant & Equipment, net 27 Investment in Subsidiary 28 35 Bond Payable (net) 36 Other long-term liabilites 37 Common Stock 38 APIC 39 Retained Earnings 40 Noncontrolling Interest 41 42 43 Total Liabilities and Equity TR5 + Type here to search Font 11 FORMULAS DATA - A B Parent (61,609) 1,701,938 6,889,800 1,701,938 (340,800) 8,250,938 12,000,000 1,200,000 (8,640,000) (720,000) 3,360,000 203,547 480,000 (1,800,000) (312,000) 1,110,310 2,100,000 3,120,000 12,072,000 846,289 = 1,013,280 1,428,000 1,220,781 1,800,000 663,600 4,872,000 8,250,938 Subsidiary 260,617 387,900 516,000 660,000 1,236,000 1,158,767 19,248,599 3,958,667 REVIEW VIEW DEVELOPER 92,617 Ibond 573,600 600,000 Alignment D 270,000 E 260,617 (24,000) 506,617 19,248,599 3,958,667 Wrap Text *Merge & Center 1,913,650 Ibond 178,800 E 186,000 E 506,617 E 203,547 Consolidation Entries. Dr 92,617 26,062 270,000 1,231,172 178,800 186,000 F G Number O $ % 9 G Cr Number 24,000 E Ibond Ibond 1,158,767 364,800 181,947 93,022 0.000 H G Consolidated Ch6.xlsx -Excel (Product Activation Failed) Normal Conditional Format as Check Cell Formatting Table I J Sub NI K NI to NCI Sub. NI EI Bad Good Explanatory... |Input $ -Amortixation of Gain $ S L 234,555 (31,008) 203,547 26,061.70 Styles M N Neutral Linked Cell 0 P Calculation Note O R FA Insert Delete Format S Cells T T U > AutoSum Fill Clear V Sort & Find & Filter Select Editing W 57F Mostly cloudy Microsoft account X Y 2 Z 90% 5:38 PM 11/16/2023 WAS G FILE Paste HOME INSERT Cut Copy Format Painter Clipboard Available Files G Document Recovery Word has recovered the following files. Save the ones you wish to keep. w 1. Introductory Assignmen... Version created last time t... 9/29/2023 12:19 PM WEnron.docx [Original] Version created last time t... 10/27/2023 4:03 PM Calibri (Body) 11 A A B I U abc X, x Aa A ====A w Chapter 2-461.docx [Orig... Version created last time t... 10/27/2023 5:06 PM w Chapter 3 461.docx [Origi... Version created last time t... 10/27/2023 5:49 PM w Chapter 4-461.docx [Aut... Version created from the I... 10/28/2023 12:39 PM DESIGN w Chapter 4 - 461.docx [Orig... Version created last time t... 10/27/2023 3:44 PM w Practice-Midterm.docx [Ori... Version created last time t... 10/28/2023 3:30 PM w Document1 [Autosaved] Version created from the I... 10/19/2023 9:28 PM w 441 Midterm Note Sheet.d... Version created from the I... 10/30/2023 4:08 PM ? Which file do I want to save? PAGE 1 OF 3 321 WORDS DE PAGE LAYOUT Close Font Aa REFERENCES MAILINGS REVIEW VIEW AL X V Paragraph TOPIC REVIEW 6.5 Amortization tables: Parent Year 12/31/2019 2020 Constructive Retirement of Intercompany Debt-Equity Method Assume that a parent company acquires a 90% interest in its subsidiary on January 1, 2018. On the date of acquisition, the fair value of the 90 percent controlling interest was $594,000 and the fair value of the 10 percent noncontrolling interest was $66,000. On January 1, 2018, the book value of net assets equaled $660,000 and the fair value of the identifiable net assets equaled the book value of identifiable net assets (i.e., there was no AAP or Goodwill). On December 31, 2019, the parent company issued $1,200,000 (face) 6 percent, five-year bonds to an unaffiliated company for $1,251,954 (i.e., the bonds had an effective yield of 5 percent). The bonds pay interest annually on December 31, and the bond premium is a amortized using the straight-lin t-line method. This results in annual bond-payable premium amortization equal to $10,391 per year. On December 31, 2021, the subsidiary paid $1,138,150 to purchase all of the outstanding parent company bonds (i.e., the bonds had an effective yield of 8 percent). The bond discount is amortized using the straight-line method, which results in annual bond- investment discount amortization equal to $20,617 per year. The parent uses the equity method of pre- consolidation investment bookkeeping. The parent and the subsidiary report the following financial statements for the year ended December 31, 2022: 2022 2023 2024 Subsidiary Year 12/31/202: 2022 2023 2024 2021 G Cash payment 72,000 72,000 72,000 72,000 72,000 Cash 72,000 72,000 72,000 Math Type AaBb CcDc AaBbCcDc AaBb C AaBbccc AaB AaBbccc AaBb CcD; AaBb CcD; AaBb CcD; AaBbCcDc AaBb CcD AqBbCcD AABBCCDI AABBCCDI AaBbCcD 1 No Spac... Heading 1 Heading 2 Normal Title Subtitle Subtle Em... Strong Quote Intense Q... Subtle Ref... Intense Re... Book Title Intense E... Emphasis Styles I bond Bonds Payable, net $1,231,172 Bonds investment Amortization 10.391 10,391 10,391 10,391 10,391 Amortization 20,617 20,617 20,617 $1,138,150 (Ctrl) - Ch6.docx - Word (Product Activation Failed) Interest expense 61,609 61.609 61.609 61,609 61,609 Interest income 92,617 92,617 92,617 Carrying amount 1,251,954 1.241.563 1.231,172 1,220,781 1,210,390 1,200,000 Carrying amount 1,138,150 Gain on bond Repurchase 2022 (Consolidation entry) Ibond Bonds Payable, net $1,220,781 Interest Income 92,617 Bonds investment.1.158.767 Interest Expense 61,609 BOY Equity Investment 93,022 93,022 G ? Microsoft account Find c Replace Select Editing X + 79% 5:38 PM 11/16/2023 XS FILE Paste G31 HOME Cut E Copy Format Painter Clipboard 1 Topic review 5 2 3 4 Income Statement 5 Sales Cost of Goods Sold INSERT PAGE LAYOUT READY X A 6 7 Gross Profit 8 Income (loss) from Subsidiary 9 Operating & other expenses 10 Bond interest income 11 Bond interest expense FEB Calibri 12 Net Income 13 Income attributable to NCI 14 Income attributable to Controlling Int 15 16 Retained Earnings Statement 17 Beg. Ret. Earn. 18 Net Income 19 Dividends Declared B I 20 Ending Retained Earnings 21 22 Balance Sheet 23 Cash 29 30 Investment in Bond (net) 31 Total Assets 32 33 Accounts Payable 34 Other current liabilities 24 Accounts receivable 25 Inventories 26 Property, Plant & Equipment, net 27 Investment in Subsidiary 28 35 Bond Payable (net) 36 Other long-term liabilites 37 Common Stock 38 APIC 39 Retained Earnings 40 Noncontrolling Interest 41 42 43 Total Liabilities and Equity TR5 + Type here to search Font 11 FORMULAS DATA - A B Parent (61,609) 1,701,938 6,889,800 1,701,938 (340,800) 8,250,938 12,000,000 1,200,000 (8,640,000) (720,000) 3,360,000 203,547 480,000 (1,800,000) (312,000) 1,110,310 2,100,000 3,120,000 12,072,000 846,289 = 1,013,280 1,428,000 1,220,781 1,800,000 663,600 4,872,000 8,250,938 Subsidiary 260,617 387,900 516,000 660,000 1,236,000 1,158,767 19,248,599 3,958,667 REVIEW VIEW DEVELOPER 92,617 Ibond 573,600 600,000 Alignment D 270,000 E 260,617 (24,000) 506,617 19,248,599 3,958,667 Wrap Text *Merge & Center 1,913,650 Ibond 178,800 E 186,000 E 506,617 E 203,547 Consolidation Entries. Dr 92,617 26,062 270,000 1,231,172 178,800 186,000 F G Number O $ % 9 G Cr Number 24,000 E Ibond Ibond 1,158,767 364,800 181,947 93,022 0.000 H G Consolidated Ch6.xlsx -Excel (Product Activation Failed) Normal Conditional Format as Check Cell Formatting Table I J Sub NI K NI to NCI Sub. NI EI Bad Good Explanatory... |Input $ -Amortixation of Gain $ S L 234,555 (31,008) 203,547 26,061.70 Styles M N Neutral Linked Cell 0 P Calculation Note O R FA Insert Delete Format S Cells T T U > AutoSum Fill Clear V Sort & Find & Filter Select Editing W 57F Mostly cloudy Microsoft account X Y 2 Z 90% 5:38 PM 11/16/2023 WAS G FILE Paste HOME INSERT Cut Copy Format Painter Clipboard Available Files G Document Recovery Word has recovered the following files. Save the ones you wish to keep. w 1. Introductory Assignmen... Version created last time t... 9/29/2023 12:19 PM WEnron.docx [Original] Version created last time t... 10/27/2023 4:03 PM Calibri (Body) 11 A A B I U abc X, x Aa A ====A w Chapter 2-461.docx [Orig... Version created last time t... 10/27/2023 5:06 PM w Chapter 3 461.docx [Origi... Version created last time t... 10/27/2023 5:49 PM w Chapter 4-461.docx [Aut... Version created from the I... 10/28/2023 12:39 PM DESIGN w Chapter 4 - 461.docx [Orig... Version created last time t... 10/27/2023 3:44 PM w Practice-Midterm.docx [Ori... Version created last time t... 10/28/2023 3:30 PM w Document1 [Autosaved] Version created from the I... 10/19/2023 9:28 PM w 441 Midterm Note Sheet.d... Version created from the I... 10/30/2023 4:08 PM ? Which file do I want to save? PAGE 1 OF 3 321 WORDS DE PAGE LAYOUT Close Font Aa REFERENCES MAILINGS REVIEW VIEW AL X V Paragraph TOPIC REVIEW 6.5 Amortization tables: Parent Year 12/31/2019 2020 Constructive Retirement of Intercompany Debt-Equity Method Assume that a parent company acquires a 90% interest in its subsidiary on January 1, 2018. On the date of acquisition, the fair value of the 90 percent controlling interest was $594,000 and the fair value of the 10 percent noncontrolling interest was $66,000. On January 1, 2018, the book value of net assets equaled $660,000 and the fair value of the identifiable net assets equaled the book value of identifiable net assets (i.e., there was no AAP or Goodwill). On December 31, 2019, the parent company issued $1,200,000 (face) 6 percent, five-year bonds to an unaffiliated company for $1,251,954 (i.e., the bonds had an effective yield of 5 percent). The bonds pay interest annually on December 31, and the bond premium is a amortized using the straight-lin t-line method. This results in annual bond-payable premium amortization equal to $10,391 per year. On December 31, 2021, the subsidiary paid $1,138,150 to purchase all of the outstanding parent company bonds (i.e., the bonds had an effective yield of 8 percent). The bond discount is amortized using the straight-line method, which results in annual bond- investment discount amortization equal to $20,617 per year. The parent uses the equity method of pre- consolidation investment bookkeeping. The parent and the subsidiary report the following financial statements for the year ended December 31, 2022: 2022 2023 2024 Subsidiary Year 12/31/202: 2022 2023 2024 2021 G Cash payment 72,000 72,000 72,000 72,000 72,000 Cash 72,000 72,000 72,000 Math Type AaBb CcDc AaBbCcDc AaBb C AaBbccc AaB AaBbccc AaBb CcD; AaBb CcD; AaBb CcD; AaBbCcDc AaBb CcD AqBbCcD AABBCCDI AABBCCDI AaBbCcD 1 No Spac... Heading 1 Heading 2 Normal Title Subtitle Subtle Em... Strong Quote Intense Q... Subtle Ref... Intense Re... Book Title Intense E... Emphasis Styles I bond Bonds Payable, net $1,231,172 Bonds investment Amortization 10.391 10,391 10,391 10,391 10,391 Amortization 20,617 20,617 20,617 $1,138,150 (Ctrl) - Ch6.docx - Word (Product Activation Failed) Interest expense 61,609 61.609 61.609 61,609 61,609 Interest income 92,617 92,617 92,617 Carrying amount 1,251,954 1.241.563 1.231,172 1,220,781 1,210,390 1,200,000 Carrying amount 1,138,150 Gain on bond Repurchase 2022 (Consolidation entry) Ibond Bonds Payable, net $1,220,781 Interest Income 92,617 Bonds investment.1.158.767 Interest Expense 61,609 BOY Equity Investment 93,022 93,022 G ? Microsoft account Find c Replace Select Editing X + 79% 5:38 PM 11/16/2023