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Please help me solve the following credit/debit portion, thanks! If you can show, that would be great! On January 1, 2014, Hamilton sold $2,300,000 in
Please help me solve the following credit/debit portion, thanks! If you can show, that would be great!
On January 1, 2014, Hamilton sold $2,300,000 in 10-year bonds to the public at 110. The bonds had a cash interest rate of 9 percen payable every December 31. Cairns acquired 35 percent of these bonds at 92 percent of face value on January 1, 2016. Both companies utilize the straight-line method of amortization. Prepare the consolidation worksheet entries to recognize the effects of the intra-entity bonds at each of the following dates. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a. December 31, 2016 b. December 31, 2017 c. December 31, 2018 Answer is not complete. No Debit Credit 1 Date Accounts December 31, 201 Bonds payable Premium on bonds payable Interest income Investment in bonds Interest expense Gain on retirement of bonds 2 December 31, 201 Bonds payable Premium on bonds payable Interest income Investment in bonds Interest expense Investment in Hamilton lol lol 3 December 31, 201 Bonds payable Premium on bonds payable Interest income Investment in bonds Interest expense Investment in Hamilton
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