1 E8-1 Bond Sale from Parent to Subsidiary (Effective Interest Method) LO 8-2 10 Doints Pretzel Corporation owns 60 percent of Stick Corporation's voting shares. On January 1, 20x2. Pretzel Corporation sold $150,000 par value, 6 percent first mortgage bonds to Stick for $156,000. The bonds mature in 10 years and pay interest semiannually on January 1 and July 1 Required: a. Prepare the journal entries for 20x2 for Stick related to its ownership of Protzer's bonds. (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.) View transaction lit View journal entry worksheet Debit Credit No 150,000 1 Date General Journal January 1, 20X2 Investment in Pretzel Corporation bonds Cash 156.000 4,500 2 July 1, 20X2 Cash Interest income Investment in Pretzel Corporation bonds 4.600 3 December 31. Interest rivable 20X2 Interest income Istment in Pro Corporation bonds b. Prepare the journal entries for 20x2 for Pretzel related to the bonds (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) 10 Do BOOK View transaction ist View ournal entry worksheet General Journal Credit No 1 Debit 150.000 References Date Janary 1, 20X2 Cash Bond premium Bonds payabio 6,000 150,000 2. My 1. 20X2 Interest expense Bond promum Cash 4,500 3 December 3. Wars experte 30X2 Bond premium Interest payable be 4,600 c. Prepare the worksheet consolidation entries needed on December 31, 20X2, to move the of bonds. (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) ts eBook view transaction list transaction list Print Accounts Debit Credit No 1 Event 1 eferences Bonds payable Bond premium Interest incomo Interest expense Investment in Pretzel Corporation bonds 2 2 4,500 4,500