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On January 1, 2023 (i.e., two years after the bond issuance), Popcorn Co. purchased all of these bonds from the investors who had originally purchased

On January 1, 2023 (i.e., two years after the bond issuance), Popcorn Co. purchased all of these bonds from the investors who had originally purchased the bonds from Salt. At this time, the market price of the bonds is $5,100,000.

What is the 1/1/23 journal entry recorded by Popcorn?

Although Salt Co. is not party to this transaction and thus does not have to record a journal entry, Popcorns management instructs Salts management to record a reclassification entry on this date. I.e., the Bonds Payable and remaining Premium on Bonds Payable are to be reclassified as intercompany accounts. What is Salts reclassification entry?

If we were to prepare a consolidation worksheet at this date (1/1/23), what is the appropriate worksheet entry?

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