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Need help with my debits and credits journal entries are correct. Wood Corporation owns 70 percent of Carter Company's voting shares. On January 1, 20X3,

Need help with my debits and credits journal entries are correct. image text in transcribed
Wood Corporation owns 70 percent of Carter Company's voting shares. On January 1, 20X3, Carter sold bonds with a par value of $742,500 at 98. Wood purchased $495,000 par value of the bonds, the remainder was sold to nonaffliates. The bonds mature in five years and pay an annual interest rate of 8 percent Interest is paid semiannually on January 1 and July 1 Required: a. What amount of interest expense should be reported in the 20x4 consolidated income statement? (Do not round your intermediate calculations. Round your final answers to nearest whole dollar.) b. Prepare the journal entries Wood recorded during 20x4 with regard to its investment in Carter 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%) View transaction list View journal entry worksheet No General Journal Debit Credit 1Janua1, Cash 19.800 20X4 Interest receivable 19,800 2July 1, 20X4 Cash 19.800 Investment in Carter Company bonds ember Interest receivable 31, 20X4 Investment in Carter Company bonds Interest income c. Prepare all worksheet consolidation entries needed to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements for 20x4 (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 5A75%) view transaction list No Event Debit Credit Bonds payable Interest income Investment in Carter Company bonds Bond discount Interest expense Interest payable 19.800 Interest receivable 19,800

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