Par Corporation holds 60 percent of Short Publishing Company's voting shares. Par issued $590,000 of 10 percent bonds with a 10-year maturity on January 1, 20X2, at 92. On January 1, 20X8, Short purchased $118,000 of the Par bonds for $124,000. Partial trialbalances for the two companies on December 31, 20X8, are as follows:Note: Assume using straight-line amortization of bond discount or premium.ParShortPublishing CompanyCorporation$130,000Investment in Short Publishing Company StockInvestment in Par Corporation BondsBonds PayableDiscount on Bonds Payable$123,500590,00017,00061,000Interest ExpenseInterest Income8,700Interest PayableInterest Receivable20,0005,900Required:Prepare the worksheet consolidation entry or entries needed on December 31, 20X8, to remove the effects of the intercorporate bondownership in preparing consolidated financial statements. (If no entry is required for a transaction/event, select "No journal entryrequired" in the first account field.)view transaction listtransaction listNoEventAccountsDebitCreditA1Bonds payableInterest incomeLoss on bond retirementInvestment in Par Corporation bondsDiscount on bonds payableInterest expenseInterest payableInterest receivable

No. Event Account Debit Credit A 1 Bonds Payable 118,000 Interest Income 10,300…

Required: Prepare the worksheet consolidation entry or entries needed on December 31, 20X8, to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Required: Prepare the worksheet consolidation entry or entries needed on December 31, 20X8, to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 3C

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