Stallion Corporation sold $190,000 par value, 10-year first mortgage bonds to Pony Corporation on January...
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Stallion Corporation sold $190,000 par value, 10-year first mortgage bonds to Pony Corporation on January 1, 20X5. The bonds, which bear a nominal interest rate of 10 percent, pay interest semiannually on January 1 and July 1. The entry to record interest income by Pony Corporation on December 31, 20X7, was as follows Note: Assume using straight-line amortization of bond discount or premium General Journal Debit Credit Interest Receivable 9,500 Interest Income Investment in Stallion Corporation Bonds 9,025 475 Pony Corporation owns 65 percent of the voting stock of Stallion Corporation, and consolidated statements are prepared on December 31, 2ox7. Wie igin urchase prce of th bhns to Pony Corporation Required: Original purchase price b. What is the balance in Pony's bond investment account on December 31, 20X7? Bond investment account
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