Stallion Corporation sold $190,000 par value, 10-year first mortgage bonds to Pony Corporation on January 1, 20X5. The bonds, which bear a nominal interest rate of 10 percent, pay interest semiannually on January 1 and July 1. The entry to record interest income by Pony Corporation on December 31, 20X7, was as follows:
Note: Assume using straight-line amortization of bond discount or premium.
General Journal Debit Credit
Interest Receivable 9,500
Interest Income 9,025
Investment in Stallion Corporation Bonds 475
Pony Corporation owns 65 percent of the voting stock of Stallion Corporation, and consolidated statements are prepared on December 31, 20X7.
Required:
A. What was the original purchase price of the bonds to Stallion Corporation?
B. What is the balance in Pony's bond investment account on December 31, 20X7?
C. Prepare the worksheet elimination entry or entries needed to remove the effects of the intercompany ownership of bonds in preparing consolidated financial statements for 20x7.
• Record the entry to eliminate the effects of the intercompany ownership in the bonds.
• Record the entry to eliminate the intercompany interest receivables/payables.

Answer:

a. Amortization of Bond Premium semi-annual = $475

Amortization of Bond Premium annual = $475*2 = $950

Bond Premium = $950*10 years = $9,500

Par value of Bonds          $190,000

Premium on Bonds          $9,500

Original Price of Bonds  $199,500

b.  Original Purchase Price = $199,500

Semi-annual periods from Jan 1,20X5 - Dec 31,20X7 = 3 yrs*2 = 6 periods

Premium amortization till Dec 31, 20X7 = $475*6 = $2,850

Balance in Bond Investment account = $199,500 - $2,850

Balance in Bond Investment account = $196,650

c. Event Accounts & Explanation                     Debit         Credit

      1.       Bonds Payable                                  $190,000

               Bond Premium ($9,500 - $2,850)    $6,650  

                Interest Income ($9,025*2)              $18,050  

                       Investment in Stallion Corporation Bonds   $196,650

                       Interest Expense                                            $18,050

                (To record the entry to eliminate the effects of the

                 inter-company ownership in the bonds)

    2.        Interest Payable                                  $9,500

                        Interest Receivable                                         $9,500

                 (To record the entry to eliminate the inter-company

                  interest receivables/payable)

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Activity Cost Pools Activity Rate
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Assembling products $ 6.38 per assembly hour
Processing customer orders $ 53.91 per customer order
Data concerning two products appear below:
Product S96U Product Q06F
Number of batches 34 45
Number of assembly hours 105 820
Number of customer orders 17 29
Required:
a. How much overhead cost would be assigned to Product S96U using the company's activity-based costing system?
b. How much overhead cost would be assigned to Product QO6F using the company's activity-based costing system?

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Job 39 Job 40 Job 41 Job 42
Beginning balance $26,200 $32,800 $16,700 $0
Materials requisitioned 18,000 21,000 8,400 13,300
Direct labor cost 9,100 18,100 3,050 4,200
Overhead is assigned as a percentage of direct labor cost. During June, Jobs 39 and 40 were completed; Job 39 was sold at 110 percent of cost. (Naranjo had originally developed Job 40 to order for a customer; however, that customer was near bankruptcy and the chance of Naranjo being paid was growing dimmer. Naranjo decided to hold Job 40 in inventory while the customer worked out its financial difficulties. Job 40 is the only job in Finished Goods Inventory.) Jobs 41 and 42 remain unfinished at the end of the month.
Required:
1. Calculate the overhead rate based on direct labor cost.
% of direct labor cost
2. Set up a simple job-order cost sheet for all jobs in process during June. If an amount is zero, enter "0".
Naranjo Company
Job-Order Cost Sheets
Job 39 Job 40 Job 41 Job 42
Balance, June 1 $ $ $ $
Total $ $ $ $
3. What if the expected direct labor rate at the beginning of the year was $20 instead of $25? What would the overhead rate be?
New budgeted direct labor cost = $
New overhead rate = % of direct labor cost
How would the cost of the jobs be affected?

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FE = D-F n FE RSFE RSFE = 27=1 FE; MFE = n n (FE;) 21-1|FEil MSE = MAD = n n FE; 2i=1 =FE TS = RSFE MAPE n MAD MAD about 6.0%
A. about 2.0%
B. about 18.0%
C. about 4.3%
D. about 1.00%

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Which financial statment will provide the answer? *
A Balance sheet
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C Trading Account
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Who founded crypto currency in the world​

define nationalization.​

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