On 1/1/2019, Allie Company issued bonds payable of $500,000 at 8%. It was sold at $464,000 with effective interest rate of 9%. On 1/1/2020, Choco purchased all of Allies bond for $532,000 cash with effective interest at 7% and Allies bonds payable has been effectively retired.

5) Prepare a journal entry that Choco will record for bond interest income on 12/31/2020. 6) Prepare consolidation entry B on 12/31/2020? 7) Prepare a journal entry that Allie will record for bond interest expense on 12/31/2021. 8) Prepare a journal entry that Choco will record for bond interest income on 12/31/2021. 9) Prepare consolidation entry B on 12/31/2021?