Spott Is a 75%-Owned Subsidiary of Penthal

question 6

Essay

Spott is a 75%-owned subsidiary of Penthal.On January 1,2013,Spott issued $900,000 of $1,000 face amount 8% bonds at par.The bonds have interest payments on January 1 and July 1 of each year and mature on January 1,2017.On July 2,2014,Penthal purchased all 900 bonds on the open market for $1,020 per bond.Both companies use straight-line amortization.
Required: With respect to the bonds,use General Journal format to:
1.Record the 2014 journal entries from July 1 to December 31 on Spott's books.
2.Record the 2014 journal entries from July 1 to December 31 on Penthal's books.
3.Record the elimination entries for the consolidation working papers for the year ending December 31,2014.

Recognize the importance and methods of preventive approaches in child and family welfare.

Interpret the effects of socio-economic initiatives and campaigns on child development and community support.

Distinguish between effective and ineffective educational policies and child care provisions.

Analyze the role of creative workplace solutions in supporting family child care.

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Definitions:

Imports

Goods and services bought from foreign countries for domestic consumption or use.

Exports

Goods or services produced in one country and sold to buyers in another country.

Budget Surplus

A situation where income or revenues exceed expenditures over a specific period of time, typically a fiscal year.

Budget Deficit

A budget deficit happens when a government's expenditures surpass its revenues within a given fiscal period.