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Calrns owns 80 percent of the voting stock of Hamilton, Inc. The parent's Interest was acquired several years ago on the date that the subsidlary
Calrns owns 80 percent of the voting stock of Hamilton, Inc. The parent's Interest was acquired several years ago on the date that the subsidlary 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, 2017, Hamilton sold $2,100,000 in 10-year bonds to the public at 105. The bonds had a cash Interest rate of 9 percent payable every December 31. Calrns acquired 40 percent of these bonds at 96 percent of face value on January 1, 2019. Both companles utllize the straight-line method of amortization. Prepare the consolidation worksheet entrles 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 requlred" In the first account fleld.) 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 , 2020. Note: Enter debits before credits. Calrns owns 80 percent of the voting stock of Hamilton, Inc. The parent's Interest was acquired several years ago on the date that the subsidlary 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, 2017, Hamilton sold $2,100,000 in 10-year bonds to the public at 105. The bonds had a cash Interest rate of 9 percent payable every December 31. Calrns acquired 40 percent of these bonds at 96 percent of face value on January 1, 2019. Both companles utllize the straight-line method of amortization. Prepare the consolidation worksheet entrles 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 requlred" In the first account fleld.) 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 , 2020. Note: Enter debits before credits
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