8-28 - P8-28 Comprehensive Problem: Intercorporate...

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Unformatted text preview: P8-28 Comprehensive Problem: Intercorporate Transfers12/31/x5 1,150,000 90% (500,000+280,000+420,000) = 70,000Land30,000Goodwill40,00070,000Bonds: Berry (P)= IssuerBussman(S)=Purchaser4/1/x6 Bonds Payable200,000Inv in Bonds 200,000Interest: 200,000 x 10% = 20,000Interest Expense/Income20,000Interest Receivable/Payable5,000BONDS:Bussman Sub =IssuerEntire1/1/x1Bonds payable1,000,000Premium10,000Amort: 10,000/101,0001/2/x7Balance 4x1,0004,00012/31/x7Balance3,000Interest Expense 1,000,000 x 12% = 120,000 1,000 = 119,000Berry (P) =PurchaserIntercompany1/3/x7Investment in Bonds 980,000Discount 20,000Amort: 20,000/45,00012/31/x7Balance985,000Interest Income 1,000,000 x 12% = 120,000 + 5,000 = 125,000Constructive retirement in x7 BP of 1,004,000 retired for 980,000 =gain of 24,000Interest expense 119,000 Interest income 125,000 difference 6,000BIP 15,000 x 30% = 4,500 78,000P--------------- SEIP 18,000 x 30% = 5,400Dividends payable are 10,000 x 90% = 9,000Goodwill Impairment of 25,000P8-28Equity method entriesInvestment in S90,000Income from S90,000net income $100,000 x 90%Cash27,000Current Receivables9,000Investment in S36000Dividendsf.Elimination entries:E(1)Income from Subsidiary90,000Dividends Declared36,000 Investment in Bussman Stock54,000 Eliminate income from subsidiary....
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This note was uploaded on 04/18/2008 for the course ACCT cost taught by Professor Staff during the Spring '08 term at Oklahoma State.

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8-28 - P8-28 Comprehensive Problem: Intercorporate...

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