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During the year, Sabatoge, a 70% owned subsidiary of Pure, borrowed $500,000 from Pure on August 1, 2019. The note matures in two years and
During the year, Sabatoge, a 70% owned subsidiary of Pure, borrowed $500,000 from Pure on August 1, 2019. The note matures in two years and carries an interest rate of 5%. Prepare the entries that would have been made on the separate books of each company in 2019 and the elimination entries (in journal form) on the December 31, 2019 year end consolidation worksheet.
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