Chap008_class

Chap008_class - xxx t t i XYZ C B d Investment in XYZ...

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hapter 8 Intercompan Bonds Chapter 8 Intercompany Bonds ± bonds issued directly to affiliate nstructive retirement of debt ± constructive retirement of debt 1
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onds Iss ed to Affiliate Bonds Issued to Affiliate ± eliminate bonds payable, any related bond discount or premium and investment in onds bonds ± eliminate interest expense and interest come income ± eliminate interest payable and interest ceivable receivable ± Example: E8-3 2
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(1) Bonds Payable xx E(1) Bonds Payable xxx Interest Income
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Unformatted text preview: xxx t t i XYZ C B d Investment in XYZ Company Bonds xxx Discount on B/P* xxx Interest Expense xxx E(2) Interest Payable xxx Interest Receivable xxx * If there is a bond premium, debit “Premium on B/P” instead of 3 crediting “Discount on B/P”. Bonds Issued to Non-affiliate Repurchased By Affiliate ± a constructive retirement ± compute and record gain or loss on tinguishment of debt extinguishment of debt ± Examples: E8-12 4...
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This note was uploaded on 05/01/2010 for the course MGMT 503 taught by Professor Staff during the Spring '08 term at Purdue.

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Chap008_class - xxx t t i XYZ C B d Investment in XYZ...

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