How to solve
Pepper Enterprises owns percent of Salt Corporation. On January X Salt issued $ of fiveyear bonds at Annual interest of percent is paid semiannually on January and July Pepper purchased $ of the bonds on August at par value. The following balances are taken from the separate financial statements of the two companies:
Note: Assume using straightline amortization of bond discount or premium.
tablePepper,SaltEnterprisesCorporation,Investment in Salt Corporation Bonds,$Interest Income,Interest Receivable,Bonds Payable,,$
