Sabu Is a 65%-Owned Subsidiary of Peerless

question 50

Essay

Sabu is a 65%-owned subsidiary of Peerless.On January 1,2012,Sabu issued $1,000,000 of $1,000 face amount 8% bonds at $980 per bond.The bonds have interest payments on December 31 of each year and mature on January 1,2017.On January 1,2013,Peerless purchased all 1,000 bonds on the open market for $1,010 per bond.Straight-line amortization is used by both companies.
Required: With respect to the bonds,use General Journal format to:
1.Record the journal entries on Sabu's books made from 2012 to 2017.
2.Record the journal entries on Peerless' books made from 2012 to 2017.
3.Record the elimination entries for the consolidation working papers for 2012 through 2017.

---

Definitions:

Dish Set

A collection of dishware that typically includes plates, bowls, cups, and sometimes additional items, used for serving and eating meals.

Preschool Boys

Young male children, typically under the age of 5, who are in the early childhood phase prior to attending kindergarten.

Delicate and Weak

This phrase refers to something or someone that is fragile, lacking in strength or vigor.

Girls

Young female humans, often defined before the onset of adulthood.