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Caims owns 75 percent of the voting stock of Hamilton, Inc. The parent's interest was acquired several years ago on the date that the Consequently,

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Caims owns 75 percent of the voting stock of Hamilton, Inc. The parent's interest was acquired several years ago on the date that the Consequently, no goodwill or other allocation was recorded in connection with the acquisition. Cairns uses the equity method in its internal records to account for its investment in Hamiltor. On January 1, 2014, Hamilton sold $1,200,000 in 10-year bonds to the public at 105. The bonds had a cash interest rate of 7 percent payable every December 3t Cairns acquired 35 percent of these bonds at 96 percent of face value on January 1, 2016. Both companies utilize the straight-line method of amortization. Prepare the consolidation worksheet entries to recognize the effects of the intra-entity bonds at each of the following dates. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a December 31, 2016 b. December 31, 2017 c. December 31, 2018 view transaction list Consolidation Worksheet Entries Prepare Entry B to eliminate accounts stemming from intra entity bonds and to Consolidation Worksheet Entries 2 Prepare Entry B to eliminate accounts stemming from intra-entity bonds and to recognize the gain on the effective retirement of this debt. Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2016 Record entry Clear entry view consolidation entries Consolidation Worksheet Entries 2 3 Prepare Entry "B to remove the intra-entity bond accounts that remain on the individual records of both companies. Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2017 Record entry Clear entry view consolidation entries Consolidation Worksheet Entries 2 3 Prepare Entry "B to remove the intra-entity bond accounts that remain on the individual records of both companies. Note: Enter debits before credits. Credit Debit Accounts Date December 31, 2018 view consolidation entries Record entry Clear entry view transaction list Import Prepare Entry B to eliminate accounts stemming from intra-entity bonds and to recognize the gain on the effective retirement of this debt. 1 2 Prepare Entry *B to remove the intra-entity bond accounts that remain on the individual records of both companies. 3 Prepare Entry "B to remove the intra-entity bond accounts that remain on the individual records of both companies

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