Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 11-12-2013, 08:29 PM
Junior Member
 
Join Date: Nov 2013
Posts: 1
Indirect intercompany debt transaction

What are the journal entries for an indirect intercompany debt transaction where Company A has a note payable and accrued interest payable to XYZ, an unrelated party, and B Company, a company affiliated with A Company, has acquired the debt via a note payable to XYZ for the total of the principal and accrued interest owed by Company A?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 11-13-2013, 01:15 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
Quote:
Originally Posted by dharris View Post


#1;What are the journal entries for an indirect intercompany debt transaction where Company A has a note payable and accrued interest payable to XYZ, an unrelated party,



#2;and B Company, a company affiliated with A Company, has acquired the debt via a note payable to XYZ for the total of the principal and accrued interest owed by Company A?
#1;
I guess; Cash XXXX
N/P XXXXX

Interest Exp. XXXX
Interest payable XXXX




#2;When a note or bond payable is sold directly to an affiliate at par value, the entries recorded by the investor and the issuer should be mirrorimages of each other.


Bonds Payable $XXXX
Investment in Bonds $XXXX
To eliminate intercorporate bond holding



Interest Income $XXXX
Interest Expense $XXXX
To eliminate intercompany interest – income

Interest Payable $XXXXX
Interest Receivable $XXXXX
To eliminate intercompany interest

I guess you may contact a biookkeeper for the corp for more acuarate info in detail



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
indirect ira rollover to 401k: options unrulyelk For 2013 3 06-28-2013 08:22 PM
401(K) Indirect Rollover Marlaina Income 3 02-22-2011 11:15 AM
Californians who lose their homes may face state income debt on cancelled debt!! TaxGuru California 0 09-09-2009 10:57 AM
Bad Debt-3099c sappa Income 1 03-17-2008 10:19 PM
Stock Transaction Advice paresh24 Capital Gains 1 03-04-2008 11:12 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.