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Stallion

Note: Assume using straight-line amortization of bond discount or premium.
General Journal
Debit Credit
Interest Receivable
12,000
Interest Income
11, 400
Investment in Stallion
Corporation Bonds
GOO
Pony Corporation owns 65 percent of the voting stock of Stallion Corporation, and consolidated statements ar
prepared on December 31, 20X7.
Required:
a. What was the original purchase price of the bonds to Pony Corporation?
X Answer is not complete.
Original purchase
price
b. What is the balance In Pony’s bond investment account on December 31, 20X7?
* Answer is not complete.
Bond investment
account
:. Prepare the worksheet elimination entry or entries needed to remove the effects of the Intercompany owner
bonds in preparing consolidated financial statements for 20X7. (If no entry is required for a transaction/event
quot;No journal entry requiredquot; in the first account field.}
* Answer is not complete.
No
Event
Accounts
Debit
Credit
A
200,000
Bond premium
Interest income
Investment in Stallion Corporation bonds
Interest expense
B
2
Interest payable
12,000
Interest receivable
12,000Business

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