Question
I need help to solve this problem. Dundee Company issued $1,000,000 par value 10-year bonds at 102 on January 1, 20X5. The coupon rate on
I need help to solve this problem. Dundee Company issued $1,000,000 par value 10-year bonds at 102 on January 1, 20X5. The coupon rate on the bonds is 9 percent. Interest payments are made semiannually on July 1 and January 1. $500,000 of the Bonds were purchased directly by Perth and the balance issued to an unaffiliated .Perth owns 65 percent of Dundee's voting shares. Both Company's use Straight Line amortization of any discount or premium Required:
a. Prepare a bond amortization table for Dundee
b. Prepare the Journal entries on Dundee and Perth's books for 2005
c. Prepare the worksheet eliminating entry or entries needed to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements at December 31, 20X5.
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