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I need help in this question. Please do it correctly and 100%, i am stuck on this. 2 Stallion Corporation sold $180,000 par value, 10-year
I need help in this question. Please do it correctly and 100%, i am stuck on this.
2 Stallion Corporation sold $180,000 par value, 10-year first mortgage bonds to Pony Corporation on January 1, 20X5. The bonds, which bear a nominal Interest rate of 8 percent, pay Interest semiannually on January 1 and July 1. The entry to record Interest Income by Pony Corporation on December 31, 20X7, was as follows: 5 points Note: Assume using straight-line amortization of bond discount or premium. Credit Debit 7,280 General Journal Interest Receivable Interest Income Investment in Stallion Corporation Bonds eBook 6,840 360 Print Pony Corporation owns 65 percent of the voting stock of Stallion Corporation, and consolidated statements are prepared on December 31, 20X7. References Required: a. What was the original purchase price of the bonds to Pony Corporation? Original purchase price b. What is the balance in Pony's bond Investment account on December 31, 20X7? Bond investment account c. Prepare the worksheet elimination entry or entries needed to remove the effects of the Intercompany ownership of bonds in preparing consolidated financial statements for 20x7. (If no entry is required for a transaction/event, select "No Journal entry required" In the first account fleld.) view transaction list Consolidation Worksheet Entries
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