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CaIrns owns 70 percent of the voting stock of Hamliton, Inc. The parent's interest was acqulred several years ago on the date that the subsidlary
CaIrns owns 70 percent of the voting stock of Hamliton, Inc. The parent's interest was acqulred several years ago on the date that the subsidlary was formed. Consequently, no goodwill or other allocation was recorded In connection with the acquisition. Calrns uses the equlty method in its internal records to account for its Investment In Hamilton. On January 1, 2017, Hamilton sold $1,100,000 in 10-year bonds to the public at 10. The bonds had a cash intere rate of 8 percent payable every December 31. Calrns acquired 45 percent of these bonds at 92 percent of face value on January 1, 2019. Both companies uttlize the straight-line method of amortization. Prepare the consolidation worksheet entrles to recognize the effects of the intra-entity bonds at each of the followng dates. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a. December 31,2019 b. December 31,2020 c. December 31, 2021 Consolidation Worksheet Entries Prepare Consolidation Entry B to account for these bonds on December 31 , 2019. Nate: Enter debits before credits
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