Chapter 08 – Intercompany Indebtedness
P8-20 (continued)
Bond and other Debt Consolidation Entries:
Bonds Payable
100,000
Bond Premium
13,246
Investment in Stang Bonds
101,607
Investment in Stang Stock
9,311
NCI in NA of Stang
2,328
Note: Interest revenue and expense is not shown in the entry
above because only the balance sheet is being consolidated.
The impact of the interest revenue and expense is included in
the adjustments to the investment in Stang Stock and the NCI
in NA or Stang instead.
$13,246 = $39,739 x 1/3
Original gain = ($339,739 x 1/3) – 102,000 = $11,246
$9,311 = ($11,246 + 92.89 + 96.45 + 100.14 + 103.98) x 0.80
$2,328 = ($11,246 + 92.89 + 96.45 + 100.14 + 103.98) x 0.20
Interest Payable
4,000
Interest Receivable
4,000
