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Apple Corporation holds 60 percent of Shortway P...




Apple Corporation holds 60 percent of Shortway Publishing Company?s voting shares. Apple issued $520,000 of 8 percent bonds with a 10-year maturity on January 1, 20X2, at 92. On January 1, 20X8, Shortway purchased $160,000 of the Apple bonds for $166,000. Partial trial balances for the two companies on December 31, 20X8, are as follows: Apple Corporation Shortway Publishing Company Investment in Shortway Publishing Company Stock $ 138,000 Investment in Apple Corporation Bonds $ 166,000 Bonds Payable 520,000 Discount on Bonds Payable 14,000 Interest Expense 58,000 Interest Income 8,000 Interest Payable 21,000 Interest Receivable 6,400 Prepare the worksheet elimination entry or entries needed on December 31, 20X8, to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements (just need to fill in the ???) Bonds Payable 160000 Interest income 8000 Loss on Bond Retirement ??? investment in Apple... 166000 Discount on Bonds ??? Interest Expense ??? Interest payable 6400 Interest receivable 6400


Paper#11271 | Written in 18-Jul-2015

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