Spott Is a 75%-Owned Subsidiary of Penthal

question 32

Essay

Spott is a 75%-owned subsidiary of Penthal.On January 1,2010,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 1,2014.On July 2,2011,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 2011 journal entries from July 1 to December 31 on Spott's books.
2.Record the 2011 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 31,2011.

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Definitions:

Gene Structure

The arrangement of functional regions within a gene, including regulatory sequences, exons, introns, and untranslated regions that influence gene expression.

Genetic Shotgun

A sequencing method that involves breaking down DNA into many small pieces, sequencing them, and then using computer algorithms to assemble the sequences into a complete genome.

Transgenic Salmon

Salmon that have been genetically modified, often to grow faster than their non-GM counterparts.

Sterile Females

Female organisms that are unable to produce offspring due to the absence or malfunction of reproductive organs.