Cartwright, Inc. has $1,000,000 of 10% bonds outstanding on December 31, 20X8. On January 1, 20X9, Adam Corp., an 80%-owned subsidiary of Cartwright, Inc., purchases a $250,000 part of Cartwright, Inc.'s outstanding bonds in the market for $245,000. Interest accrued by 12/31/X9 is $12,500.
Determine the eliminating entries necessary for the 20X9 consolidated financial statements.© BrainMass Inc. brainmass.com March 5, 2021, 1:21 am ad1c9bdddf
The Consolidated Financial Statement reflects all of the expenses for the subsidiary and parent company. Examine an intercompany sale and purchase of a bond.