advanced accounting P7-1

P7-1 Journal entries (constructive retirement of subsidiary's bonds) Penang Corporation owns an 80 percent interest in Minang Corporation. On October 1, 2016, Minang issued $100,000 par, 10 percent 3-year bonds with an unamortized discount of $20,000. On October 2, 2016, Penang purchased 50 percent of the outstanding bonds for $48.000. The bonds pay interest on April I and October 1, and are amortized using the straight-line method. REQUIRED: Prepare the consolidated adjustment journal entries for Penang Corporation and Subsidiary