50.1K

Verified Solution

Link Copied!

$1$ In $1962,$ the MI$6$ Company bought all of the stock of the James Bond Company at book value

$2$ James Bond Company does not pay any dividends and MI$6$ accounts for its investment in James Bond under the cost $($initial value$)$ method

$3$

$4$ Additional information is as follows:

$5$

$6$

$7$

$8$

$9$

$10$

$11$

$12$

$13$

$14$

$15$

$16$

$17$

$18$

On January $1$st $2015$ the James Bond Company issued $($sold$)$ $$1,000,000$ of $12\%$ semi$-$annual $20$ year bonds at $102.$

These bonds pay interest on July $1$ and January $1$ and James Bond uses the straight line method of bond amortization.

On January $1$st $2020,$ MI$6$ acquired these bonds from SPECTRE Company $($an outside company$)$ for $$940,000$

MI$6$ also uses the straight line method to amortize interest revenue.

REQUIRED:

MAKE THE JOURNAL ENTRY JAMES BOND MADE WHEN IT SOLD THE BONDS IN $2015$

MAKE THE JOURNAL ENTRY JAMES BOND MADE WHEN IT MADE ITS FIRST INTEREST PAYMENT ON JULY $12015$

MAKE THE JOURNAL ENTRY MIG MAKES WHEN IT PURCHASED THE BOND IN $2020$

MAKE THE JOURNAL ENTRY MIG MADE WHEN IT RECEIVED ITS FIRST INTEREST PAYMENT JULY $1,2020$

MAKE THE NECESSARY WORKSHEET ENTRIES FOR $2020$

UNCONSOLIDATED, JAMES BOND REPORTED A LOSS OF $$4000$ AND MI$6$ REPORTED INCOME OF $$543000.$ WHAT IS CONSOLIDATED INCOME $2020?$

MAKE THE NECESSARY WORKSHEET ENTRIES FOR $2021$

UNCONSOLIDATED, JAMES BOND REPORTED A LOSS OF $$23000$ AND MI$6$ REPORTED INCOME OF $$555,000$ WHAT IS CONSOLIDATED INCOME $2021?$

Answer & Explanation Solved by verified expert

See Answer