E8-1 Bond Sale from Parent to Subsidiary (Effective Interest Method) LO 8-2 Lamar Corporation owns 60 percent of Humbolt Corporation's voting shares On January 1, 20X2, Lamar Corporation sold $150,000 par value,6 percent first mortgage bonds to Humbolt for $156,000. The bonds mature in 10 years and pay interest semiannually on January 1 and July 1 Required: a Prepare the journal entries for 20X2 for Humboltrelated to its ownership of Lamars bonds. (If no entry is required for a transaction/levent required" in the first account field. Do not round your intermediate calculations. Round your final answers to nearest whole dollar) select "No journal entry 1-Record the investment in the bonds of Lamar Corporation. 2-Record the semiannual interest income received 3-Record the semiannual interest receivable. b. Prepare the journal entries for 20X2 for Lamar related to the bonds (If no entry is required for a transactionlevent, select "No journal entry required" in the first account field. Do not round your intermediate calculations. Round your final answers to nearest whole dollar.) 1-Record the investment in Lamar Corporation bonds by Humbolt Corporation. 2-Record the payment of interest and the amortization of the bond premium. 3-Record the interes payable and the amortization of bond premium c. Prepare the worksheet consolidation entries needed on December 31, 20X2, to remove the effects of the intercorporate ownership of bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations. Round your final answers to nearest whole dollar.) 1-Record the entry to eliminate the intercompany bond holdings bles rd con