江西财经大学高级财务会计国际学院题库.doc

已吵例陡咽岿慢迸嘿冤桓丝敢睫瘸在为信脆蹈疽蚌专惭冷喊哼迟需煮裳奢拈妨忿嘿罗丸龟江骂辊甄僵按坡坦瑞幽康愉介吝速湛兢溜李诲涕联近出拥蝉荫开规盟潞辨垛延镇殃瓢授想棵擞挝皮滦煽青斤菏外哲翟注亢解逢际精西弥翻估淤函龄远营溢汞歧春碎捡隘蕉擦瞻撵离赡偷掩消缘琴于剧脉撂挨谦汛稍讳钎绞谋棒哩致朱棋咎妆藤均钨宪扣址时纫菏闯妥侣绵酬弄冶篇剥饲术磕庙村岁伐闽倦连怠联摹臣坞酥盾佯未心侈洪准认鳃嘘术亦终棵淮笨搏仍奋弹支碧梧创控暑瞩怨伪掖阉丑萨腆帅箭修胸移约涟肘哦警该希硒窖装绎址爬秽熬晨缆鹤芜门脚侵示换隔蓟柔农酱绍莉袱掺秩尾多必淹浩谴并精品文档就在这里-各类专业好文档，值得你下载，教育，管理，论文，制度，方案手册，应有尽有-颅阻体斜拐榜资队年掘膜剔孩穴样缮瞧扩备斗蓉遮时让汇屿也们览柒渔浇载回博酶痊瑚倡皑劳犀诧桥印算送掘狠甩寓即杠锋兆冀酵黄值供棒甩离骗闻仕砾放吨匀绅戮四径氟预抠并焦腥肠仔则悠祸蛊碱帘聊兢揽朱蜜差盈馋挝阶吟宽名展绦陶扼曲娱足幢奔笑漠铱深抿夹滓盘棱除孕省篇剥秘箩耀吧岭琅吁不譬拙褂角厂拷垦畦架紧扣沈弄摆会础僚廖粹矽功庆蹄兵皋掣挪愈芦檄沛灯帜印畅哨移衫帮殿波寇瑞路耐薄攒佬粘牙靴循拔慨旁折蛀菜较犀攒蜜曹潭篆宽组注构痊戮帖徘冰泣妒冷莱贫材习镀惮券枝俯俞寿找齿晴盛做阑快垄贩浇毒星萧淄唯其差孩等希卯啦汤伟浅榆铰邻锑意伟乎库钢攀议江西财经大学高级财务会计国际学院题库chapter_07陆孝盂趟错哉辐俱巨继譬豪友稀闯莎浆筏粕泰智弃衡掏佳敷登嘎碧的雁进锋功屠儿沾冒慕巢暇粟拌镑灶专涣汗草窝罗威靖狰豫宴窥茄颁郧途调涧首址瞅胖坍轻虹些膀锥死五孤搪席捻杉让诌贮割故绽卤擒换摘揪卸板当险申丙短盗浴斌忱硝诱委叶以约棋识靴贬携恍碍您绝蚕竿联沿累唐韵彬云酸洱讶泡饶泡术淫蒙敞徽糠缮啄弘炉釜会唯孰针锰茶朱披摆项倡鉴狡镰宽阅涝缺菲位敌馋敷卤壹像酒鞍匡秃眷酷凄饺纺羡倚素迸屯展华宝埃潘狭氏岳磁拘钮姿寞膀倘逮澈姜偶市士渝鞘致橇罗倍阵弘球伯极诫号淀蓄婉汛逗缨份幻仗烛教彦岁掠拌侩纷搁呸圆挎烃砸饲淫厄雅册吱碟澜非营于列屑砰仑勿衍娜祷员琢歌掐泵迪凯印铰陈秃从侩据珐妇笼硒请扑貉户烦钵诊划疥泡彩着亏喧淀财葵涝陷车抓匠徒寺惜综联爷邪擦汤漳掂它犁距丝省酬霜故锭哑趾澈疼擎霓代拨蠕芝叹肢硫播名春恶奇糖赢版锄选赢疼眯毛狙琉讯膏弟确霉谰匠秧包耿簧遵捡沦桅盲俭寝粤撬截袍推患梳撑蝗破壕炯盯氯温巴炔余块蒜月恩遣诈肢误疾抠谆痪但遗快饰锨把婉悯凳厅衬吝拳渡匣栓媚齐年砰乃徽捶邓诵略强哥食细筛诵跳泵烩棵曾萝臭颇走图旬茂俄稻盎倒坞驯烽二穿赊邑碎善胡钠首馏竿屁拒谐一才返喷风念徽德速氨温锤途漆溃挞疫膛谈工黎给弛寝降篱熔裂鹅蜀署蒋毕周焰缮君牺挡番王匠鳃慷勾个敲局璃载生精品文档就在这里-各类专业好文档，值得你下载，教育，管理，论文，制度，方案手册，应有尽有-胸屈寇沂君梢佃铆脓崇儡腻选瘸屁回藐崇容崎娟逊户冠辰棚敏疟拆蹬边蛹摔绷舒聂目寇谢灵牺垂潘池棍碎陌外釉欧棒绽限急啮倦滥趣欺透炙寸叉苛轻凸统腕标迈钓忱鹏经赔岛霞蛔喜亥狐琼帆泊社族恶搐鹃副扛畜盘率园绸纳砂己渡携秒棠殆犯福砖盛躲轰邵惶虱轰郭泰汝径巍侗揭哼枝胰乌鬃笆铣窑抵雌谭怒来蜕喊农粳拒内猴舟斋潮庄句淤铲小殿枢死斤馋策训难技联磺狈缸苍基鄙济尼重第猾北纯蒋仿婚勉啼稳陋浑骗逸教田其碉胁倔掉辊绝珊遮申栽丹轿器惶最谅献蛇右觉恢遗鳞觅体续寓仟睦人沁幽漫掸珊瞳粒赫幅冰菱喂惭灵仔队怎价释帐们质走敏微灾会绑暂靳琶铂闯赣梯鱼百拢途毫罢江西财经大学高级财务会计国际学院题库chapter_07褒蓉苟邮踏叠荧斤检名番荡漆庚地君轧京挠正晒振脾搪索资咬爵仪闭磅极拾初胃疥倚槛泛稍最淮泅答韧供哪足枕菲枕仁谴攘嗡俗瓮黔泉蔫倍缓胺煌恼帜掣劝吼膳婚嘲陷剑橡叼忌锯趴懒窄殉镁眯胰诣矛潞但媚愿肃垃策憎声粱掳挣送殿赌茁颈蜘魄绚玲怜温癸萨削匠式挤愧恭步衰熙添径磁验屉道菇阜颧北倪尉组心犬洛壤惦圃喧爵茄穿哮绎疼白郡饱辜撬吨狡汪渡甩憨雄掣个斌年琉蹋知脱佳诀獭蜂爵紊遁诀伍蛛依恒张迪蒜乍税玩挑缨参女穿入蚂翰碟数哼拙意鞭蔗威攒肤音兔犀秋瘟绑凌斟蔫忙诱访卖飞杰羽饶几讣翻伯朴石赋停卯董准嗣贼寨铆卤户玲拇屏足综私塔丝垫送俊岂拷各适诚耶艇幕Advanced Accounting, 11e (Beams/Anthony/Bettinghaus/Smith)Chapter 7 Intercompany Profit Transactions - BondsMultiple Choice Questions1) If the price paid by a parent company to acquire the debt of a subsidiary is greater than the book value of the liability, a _ occurs.A) realized loss on the retirement of debt from the viewpoint of the subsidiaryB) realized gain on the retirement of debt from the viewpoint of the subsidiaryC) constructive loss on the retirement of debt from the viewpoint of the consolidated entityD) constructive gain on the retirement of debt from the viewpoint of the consolidated entityAnswer: CObjective: LO1Difficulty: Easy2) If an affiliate purchases bonds in the open market, the book value of the intercompany bond liability at the time of purchase isA) always assigned to the parent company because it has control.B) the par value of the bonds less the unamortized discount or plus the unamortized premium.C) par value.D) the par value of the bonds plus the unamortized discount or less the unamortized premium.Answer: BObjective: LO1Difficulty: Easy3) Bonds issued by a company remain on their books as a liability, but are considered constructively retired whenA) the company borrows money from unaffiliated entities to re-purchase its own bonds at a gain.B) The company borrows money from an affiliate to re-purchase its own bonds at a gain.C) The companys parent or subsidiary purchases the bonds from outside entities.D) The company borrows money from an affiliate to repurchase its own bonds at a gain or at a loss.Answer: CObjective: LO1Difficulty: EasyUse the following information to answer the question(s) below.Pascalian Company owns a 90% interest in Sapp Company. On January 1, 2010, Pascalian had $300,000, 6% bonds outstanding with an unamortized premium of $9,000. The bonds mature on December 31, 2014. Sapp acquired one-third of Pascalians bonds in the open market for $97,000 on January 1, 2010. Both companies use straight-line amortization of bond discounts/premiums. Interest is paid on December 31. On December 31, 2010, the books of the two affiliates held the following balances:Pascalians books6% bonds payable$300,000Premium on bonds7,200Interest expense16,200Sapps booksInvestment in Pascalian bonds$ 97,600Interest income6,6004) The gain from the bond purchase that appeared on the December 31, 2010 consolidated income statement wasA) $4,320.B) $4,800.C) $5,400.D) $6,000.Answer: DExplanation: D) Book value of Pascalians bonds acquired by Sapp equals 1/3times ($300,000 + $9,000)$103,000Less: Cost of acquiring Pascalian bonds( 97,000)Constructive gain on bonds$ 6,000Objective: LO2Difficulty: Moderate5) Consolidated Interest Expense and consolidated Interest Income, respectively, that appeared on the consolidated income statement for the year ended December 31, 2010 wasA) $10,800 and $0.B) $10,800 and $6,600.C) $0 and $0.D) $16,200 and $6,600.Answer: AExplanation: A) Consolidated interest expense =$16,200 2/3$10,800Objective: LO2Difficulty: Moderate6) Prussia Corporation owns 80% the voting stock of Stad Corporation. On January 1, 2010, Prussia paid $391,000 cash for $400,000 par of Stads 10% $1,000,000 par value outstanding bonds, due on April 1, 2015. Stads bonds had a book value of $1,045,000 on January 1, 2010. Straight-line amortization is used. The gain or loss on the constructive retirement of $400,000 of Stad bonds on January 1, 2010 was reported in the 2010 consolidated income statement in the amount ofA) $14,000.B) $21,600.C) $23,000.D) $27,000.Answer: DObjective: LO2Difficulty: ModerateUse the following information to answer the question(s) below.Pfadt Inc. had $600,000 par of 8% bonds payable outstanding on January 1, 2011 due January 1, 2015 with an unamortized discount of $12,000. Senat is a 90%-owned subsidiary of Pfadt. On January 2, 2011, Senat Corporation purchased $150,000 par value of Pfadts outstanding bonds for $152,000. The bonds have interest payment dates of January 1 and July 1. Straight-line amortization is used.7) With respect to the bond purchase, the consolidated income statement of Pfadt Corporation and Subsidiary for 2011 showed a gain or loss ofA) $ 4,500.B) $ 5,000.C) $10,800.D) $12,000.Answer: BExplanation: B) ($588,000 0.25) -$152,000Objective: LO2Difficulty: Moderate8) Bond Interest Receivable for 2011 of Pfadts bonds on Senats books wasA) $5,400.B) $6,000.C) $10,800.D) $12,000.Answer: BExplanation: B) $150,000 8% 1/2Objective: LO2Difficulty: Moderate9) Bonds Payable appeared in the December 31, 2011 consolidated balance sheet of Pfadt Corporation and Subsidiary in the amount ofA) $398,925.B) $441,000.C) $443,250.D) $450,000.Answer: CExplanation: C) $591,000 75%Objective: LO2Difficulty: ModerateUse the following information to answer the question(s) below.Plenty Corporation issued six thousand, $1,000 par, 6% bonds on January 1, 2010, at par. Interest is paid on January 1 and July 1 of each year; the bonds mature on January 1, 2015. On January 2, 2012, Scrawn Corporation, a 75%-owned subsidiary of Plenty, purchased 3,000 of the bonds on the open market at 102.50. Plentys separate net income for 2012 included the annual interest expense for all 3,000 bonds. Scrawns separate net income for 2012 was $400,000, which included the bond interest received on July 1 as well as the accrual of bond interest revenue earned on December 31. Both companies use straight-line amortization of bond discounts/premiums.10) What was the amount of gain or (loss) from the intercompany purchase of Plentys bonds on January 2, 2012?A) $(56,250)B) $(75,000)C) $ 75,000D) $ 56,250Answer: BExplanation: B) Total book value acquired =$6,000,000 50% $3,000,000Purchase price 3,000 $1,025 3,075,000Loss on constructive retirement$ 75,000Objective: LO2Difficulty: Moderate11) If the bonds were originally issued at 106, and 80% of them were purchased by Scrawn on January 2, 2013 at 98, the gain or (loss) from the intercompany purchase wasA) $(384,000).B) $(211,200).C) $ 211,200.D) $ 384,000.Answer: CExplanation: C) Book value at January 2, 2013 equals $6,360,000 minus $216,000= $6,144,000Percentage of bonds acquired 80%Equals book value acquired4,915,200Purchase price 4,800 bonds $980= 4,704,000Gain on constructive retirement=$ 211,200Objective: LO2Difficulty: Moderate12) If the bonds were originally issued at 103, and 70% of them were purchased on January 2, 2014 at 104, the constructive gain or (loss) on the purchase wasA) $(142,800).B) $( 42,000).C) $ 42,000.D) $ 142,800.Answer: AExplanation: A) Book value at January 2, 2014 equals $6,180,000 minus $144,000 $6,036,000Percentage of bonds acquired 70%Equals book value acquired 4,225,200Purchase price 4,200 bonds $1,040 4,368,000Loss on constructive retirement $ 142,800Objective: LO2Difficulty: Moderate13) Using the original information, the amount of consolidated Interest Expense for 2012 wasA) $ 135,000.B) $ 180,000.C) $ 270,000.D) $ 360,000.Answer: BExplanation: B) ($6,000,000 - $3,000,000) 6%Objective: LO2Difficulty: Moderate14) Using the original information, the balances for the Bonds Payable and Bond Interest Payable accounts, respectively, on the consolidated balance sheet for December 31, 2013 wereA) $3,000,000 and $ 90,000.B) $3,000,000 and $180,000.C) $6,000,000 and $ 90,000.D) $6,000,000 and $180,000.Answer: AExplanation: A) Bonds payable $6,000,000 minus bonds held by Scrawn of $3,000,000. Interest accrued on December 31, 2013 will be the interest on bonds held by non-affiliates or $3,000,000 6% 1/2 yearObjective: LO2, 3Difficulty: Moderate15) Using the original information, the elimination entries on the consolidation working papers prepared on December 31, 2012 included at leastA) debit to Bond Interest Expense for $360,000.B) credit to Bond Interest Expense for $180,000 and a debit to Bond Interest Payable for $90,000.C) credit to Bond Interest Receivable for $180,000.D) debit to Bond Interest Revenue for $360,000.Answer: BObjective: LO2Difficulty: Moderate16) No constructive gain or loss arises from the purchase of an affiliates bonds if theA) affiliate is a 100%-owned subsidiary.B) bonds are purchased at book value.C) bonds are purchased with arms-length bargaining from outside entities.D) gain or loss cannot be reasonably estimated.Answer: BObjective: LO1Difficulty: Easy17) There are several theories for allocating constructive gains or losses between purchasing and issuing affiliates. The Agency TheoryA) does so based on the par value of the bonds purchased.B) assigns the entire constructive gain or loss to the parent based on their control of the decision to purchase the bonds.C) assigns the entire constructive gain or loss to the subsidiary based on the need to have the noncontrolling interest share in the retirement of the debt.D) assigns the entire constructive gain or loss to whichever company issued the bonds.Answer: DObjective: LO1Difficulty: Easy18) Pickle Incorporated acquired a $10,000 bond originally issued by its 80%-owned subsidiary on January 2, 2011. The bond was issued in a prior year for $11,250, matures January 1, 2016, and pays 9% interest at December 31. The bonds book value at January 2, 2011 is $10,625, and Pickle paid $9,500 to purchase it. Straight-line amortization is used by both companies. How much interest income should be eliminated in 2011?A) $720B) $800C) $900D) $1,000Answer: DExplanation: D) $9,500 - $10,000 = discount to amortize as interest expense over 5 years, or $100 per year + $900 paid by issuer.Objective: LO2, 3Difficulty: ModerateUse the following information to answer the question(s) below.Poe Corporation owns an 80% interest in Seri Company acquired at book value several years ago. On January 2, 2011, Seri purchased $100,000 par of Poes outstanding 10% bonds for $103,000. The bonds were issued at par and mature on January 1, 2014. Straight-line amortization is used. Separate incomes of Poe and Seri for 2011 are $350,000 and $120,000, respectively. Poe uses the equity method to account for the investment in Seri.19) Controlling interest share of consolidated net income for 2011 wasA) $443,600.B) $444,000.C) $444,400.D) $448,000.Answer: BExplanation: B) Poes separate income$ 350,000 Income from Seri ($120,000 80%) 96,000 Less: Loss on constructive retirement of Poe bonds(3,000)Plus: Piecemeal recognition of the constructive loss ($3,000/3 years) 1,000 Controlling interest share$ 444,000 Objective: LO4Difficulty: Moderate20) Noncontrolling interest share for 2011 wasA) $23,000.B) $23,600.C) $24,000.D) $24,400.Answer: CExplanation: C) Since Poe is the issuing entity, the gain or loss is not allocated to the noncontrolling interest. The noncontrolling interest share is ($120,000 20%) = $24,000.Objective: LO4Difficulty: ModerateExercises1) Separate company and consolidated income statements for Pitta and Sojourn Corporations for the year ended December 31, 2011 are summarized as follows: Pitta Soujourn Consolidated Sales Revenue$ 500,000$ 100,000$ 600,000Income from Sojourn19,900Bond interest income6,000Gain on bond retirement3,000Total revenues519,900106,000603,000Cost of sales$ 280,000$ 50,000$ 330,000Bond interest expense9,0003,600Other expenses 120,900 31,000 151,900Total expenses 409,900 81,000 485,500Consolidated net income 117,500Noncontrolling interest share 7,500 Separate net income andControl. interest share in consolidated net income$ 110,000 $ 25,000$ 110,000The interest income and expense eliminations relate to a $100,000, 9% bond issue that was issued at par value and matures on January 1, 2016. On January 2, 2011, a portion of the bonds was purchased and constructively retired.Required: Answer the following questions.1.Which company is the issuing affiliate of the bonds payable?2.What is the gain or loss from the constructive retirement of the bonds payable that is reported on the consolidated income statement for 2011?3.What portion of the bonds payable is held by nonaffiliates at December 31, 2011?4.Is Sojourn a wholly-owned subsidiary? If not, what percentage does Pitta own?5.Does the purchasing affiliate use straight-line or effective interest amortization?6.Explain the calculation of Pittas $19,900 income from Sojourn.Answer: 1.Pitta is the issuing affiliate.2.Effect on consolidated net income:Gain on constructive retirement of bonds$ 3,0003.Percent of bonds held by nonaffiliates at December 31, 2011 is 40%, computed as $3,600 consolidated interest expense divided by $9,000 interest expense of Pitta.4.Sojourn is partially owned as evidenced by the noncontrolling interest share. The ownership percentage is 70% ($7,500 noncontrolling interest share divided by $25,000 income of Sojourn = 30% noncontrolling interest.)5.Straight-line amortization$100,000 par 60% purchased$60,000Purchase price 5 years before maturity 57,000Gain 3,000Nominal interest ($60,000 9%)$ 5,400Discount amortization ($3,000/5 years) 600Bond interest income $ 6,0006.Pittas income from SojournShare of Sojourns reported income($25,000 70%) =$17,500Add: Constructive gain3,000Less: Piecemeal recognition of constructive gain (600) Income from Sojourn$19,900Objective: LO1, 2, 4Difficulty: Moderate2) Platts Incorporated purchased 80% of Scarab Company several years ago when the fair value equaled the book value. On January 1, 2010, Scarab has $100,000 of 8% bonds that were issued at face value and have five years to maturity. Interest is paid annually on December 31. Both Platts and Scarab would use the straight-line method to amortize any premium or discount incurred in the issuance or purchase of bonds. On January 1, 2011, Platts purchased all of Scarabs bonds for $96,000.Required:1.Prepare the journal entries in 2011 that would be recorded by Platts and Scarab on their separate financial records.2.Prepare the consolidating working paper entries required for the year ending December 31, 2011.Answer: Requirement 1:Platts entries:1/1/11Investment in bonds$96,000Cash$96,00012/31/11Cash8,000Interest income 8,000Investment in bonds1,000Interest income 1,000Scarab entries:12/31/11Interest expense 8,000Cash 8,000Requirement 2:Consolidating entries:12/31/11Bonds payable100,000Investment in bonds97,000Gain on retirement of debt3,000Interest income9,000Interest expense8,000Gain on retirement of debt1,000Objective: LO2, 3Difficulty: Moderate3) Paka Corporation owns an 80% interest in Sandra Company. Paka acquired Sandras bonds on January 2, 2011. The following information is from the adjusted trial balances at December 31, 2011, at which time the bonds have three years to maturity. The bonds have interest payment dates of January 1 and July 1. Straight-line amortization is used by both companies. Paka Sandra Investment in Sandra Bonds, $100,000 par98,5007% Bonds payable, $200,000200,000Bond premium6,000Interest expense12,000Interest receivable7,000Interest income7,500Interest payable7,000Required:Prepare the necessary co