Chapter 4 Logo

Student Learning Outcomes:

After completing this chapter you should be able to

  • Explain the alternatives a parent company has if it wishes to acquire outstanding subsidiary bonds from outside owners;
  • Follow the procedures used to retire intercompany bonds on a consolidated worksheet;
  • Eliminate intercompany capital leases on the consolidated worksheet.


Chapter 5: "Intercompany Transactions: Bonds and Leases," pp. 266-283.


The Chapter 5 lecture is broken down into two separate topics. Topic 1 deals intercompany bonds. Topic 2 deals with intercompany leases. To access the lectures, and related PowerPoint handout, click on the respective links below:

Topic 1 lecture (31:47 minutes) - PowerPoint Handout

Topic 2 lecture (20:24 minutes) - PowerPoint Handout

Narrated Solutions:

Narrated solutions to selected Chapter 5 exercises and problems, PowerPoint handouts, and solutions to the problems:

Exercise 5-4 (8:10 minutes) - PowerPoint Handout
Exercise 5-6 (3:57 minutes) - PowerPoint Handout
Exercise 5-8 (4:03 minutes) - PowerPoint Handout
Exercise 5-9 (6:22 minutes) - PowerPoint Handout
Problem 5-7 (11:28 minutes) - PowerPoint Handout - Solution
Problem 5-12 - Solution
Problem 5-14 - Solution

Your Assignment:

For your Chapter 5 assignment, click here.  You may work in a group, or individually. If you work in a group, include the names of all group members on your submission. In addition, each member of the group must upload his/her own submission. Your assignment is due no later than 11:59 pm, CDT, Sunday, June 25. Late submissions will not be accepted.