(Module 2) On 1/1/06, Sycol, a 60%-owned subsidiary of Pycol, purchased in the open market 20% of Pycol's outstanding 9% bonds for $184,000. The outstanding bonds have a face value of $1,000,000 and a carrying value of $980,000 on 1/1/06. The maturity date of the bonds is 12/31/09.
Required:
Prepare the consolidation entry or entries required under the partial equity method at
a. 1/1/06
b. 12/31/06.

Question

Quizplus · Accepted Answer

The Answer of (Module 2) On 1/1/06, Sycol, a 60%-owned subsidiary of Pycol, purchased in the open market 20% of Pycol's outstanding 9% bonds for $184,000. The outstanding bonds have a face value of $1,000,000 and a carrying value of $980,000 on 1/1/06. The maturity date of the bonds is 12/31/09.
Required:
Prepare the consolidation entry or entries required under the partial equity method at
a. 1/1/06
b. 12/31/06.

(Module 2) on 1/1/06, Sycol, a 60%-Owned Subsidiary of Pycol