70.2K

Verified Solution

Link Copied!

473.1

Pretzel Corporation owns 60 percent of Stick Corporations voting shares. On January 1, 20X2, Pretzel Corporation sold $165,000 par value, 6 percent first mortgage bonds to Stick for $172,000. The bonds mature in 10 years and pay interest semiannually on January 1 and July 1.

Required:

Prepare the journal entries for 20X2 for Stick related to its ownership of Pretzels bonds. just need amounts:

Prepare the journal entries for 20X2 for Pretzel related to the bonds. just need amounts:

Prepare the worksheet consolidation entries needed on December 31, 20X2, to remove the effects of the intercorporate ownership of bonds. same here, just need amounts, thanks!

\begin{tabular}{|c|c|c|c|c|c|} \hline No & Date & & & Debit & Credit \\ \hline \multirow[t]{3}{*}{1} & January 1,202 & Cash & 0 & 172,000 & \\ \hline & & Bonds payable & 0 & & 165,000 \\ \hline & & Bond premium & 0 & & 7,000 \\ \hline \multirow[t]{3}{*}{2} & July 1,202 & Interest expense & 2 & & \\ \hline & & Bond premium & 0 & & \\ \hline & & Cash & 2 & & \\ \hline \multirow[t]{3}{*}{3} & December 31, 20X & Interest expense & 0 & & \\ \hline & & Bond premium & 0 & & \\ \hline & & Interest payable & 0 & & \\ \hline \end{tabular} Prepare the journal entries for 202 for Stick related to its ownership of Pretzel's bonds. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not rour your intermediate calculations. Round your final answers to nearest whole dollar. Prepare the worksheet consolidation entries needed on December 31,202, to remove the effects of the intercorporate ownership of bonds. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations. Round your final answers to nearest whole dollar

Answer & Explanation Solved by verified expert

See Answer