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 $170,000 par value, 8 percent first mortgage bonds to Humbolt for $178,000. 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 Humbolt related to its ownership of Lamar's bonds. (lf no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your market rate of interest to 3 decimals. For example, .0547523 should be rounded to 5.475%) Answer is not complete Date General Journal Debit Credit January 1 20X2 Investment in Lamar Corporation bonds 178,000 Cash 178,000 July 1, 20X2 Cash 6,800 Interest income Investment in Lamar Corporation bonds December 31 20X2 Interest receivable Interest income Investment in Lamar Corporation bonds b. Prepare the journal entries for 20X2 for Lamar related to the bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your market rate of interest to 3 decimals. For example, .0547523 should be rounded to 5.475%) Answer is not complete Date General Journal Debit Credit January 1 20X2 Cash 178,000 Bonds payable Bond premium 170,000 8,000 Interest expense Bond premium Cash July 1, 20X2 8,000 December 31 20X2 Interest expense Bond premium Interest payable