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.

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Definitions:

Humanistic Therapies

A category of psychotherapy that emphasizes personal growth and self-fulfillment, focusing on the patient's individual viewpoint as a key to psychological health.

Conscious Thoughts

Refers to the awareness one has of their own thoughts, feelings, and sensations in the present moment.

Self-perceptions

How individuals view or perceive themselves, their abilities, appearance, and values.

Psychodynamic Therapy

A therapeutic approach that explores the psychological forces underlying human behavior, feelings, and emotions, and how they might relate to early experiences.