Able Company issued $1,020,000 of 10 percent first mortgagebonds on January 1, 20X1, at 102. The bonds mature in 20 years andpay interest semiannually on January 1 and July 1. PrimeCorporation purchased $680,000 of Ableâs bonds from the originalpurchaser on December 31, 20X5, for $675,000. Prime owns 60 percentof Ableâs voting common stock. Prepare the worksheet consolidationentry or entries needed to remove the effects of the intercorporatebond ownership in preparing consolidated financial statements for20X5.
Prepare the worksheet consolidation entry or entries needed toremove the effects of the intercorporate bond ownership inpreparing consolidated financial statements for 20X6.
Able Company issued $1,020,000 of 10 percent first mortgagebonds on January 1, 20X1, at 102. The bonds mature in 20 years andpay interest semiannually on January 1 and July 1. PrimeCorporation purchased $680,000 of Ableâs bonds from the originalpurchaser on December 31, 20X5, for $675,000. Prime owns 60 percentof Ableâs voting common stock. Prepare the worksheet consolidationentry or entries needed to remove the effects of the intercorporatebond ownership in preparing consolidated financial statements for20X5.
Prepare the worksheet consolidation entry or entries needed toremove the effects of the intercorporate bond ownership inpreparing consolidated financial statements for 20X6.
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