Cairns owns 80 percent of the voting stock of Hamilton, Inc. The parents interest was acquired several years ago on the date that the subsidiary was formed. 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 Hamilton.

On January 1, 2011, Hamilton sold $1,500,000 in 10-year bonds to the public at 105. The bonds had a cash interest rate of 8 percent payable every December 31. Cairns acquired 45 percent of these bonds at 96 percent of face value on January 1, 2013. 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.)

Prepare entry B -December 31,2013

Prepare entry *B - December 31,2014

Prepare entry *B - December 31,2015

List of accounts are

No entry required

Amortization expense

Bonds Payable

Discount on Bonds payable

Gain on retirementof bonds

Goodwill

Interest expense

Interest income

Investment in bonds

Investment in Hamilton

Loss on retirement of bonds

Premium on bonds payable