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Pretzel Corporation owns 60 percent of Stick Corporation's voting shares. On January 1,202, Pretzel Corporation sold $150,000 p value, 6 percent first mortgage bonds to
Pretzel Corporation owns 60 percent of Stick Corporation's voting shares. On January 1,202, Pretzel Corporation sold $150,000 p value, 6 percent first mortgage bonds to Stick for $156,000. The bonds mature in 10 years and pay Interest semiannually on January and July 1. Note: Assume using straight-IIne amortization of bond discount or premlum. Required: a. Prepare the journal entrles for 202 for Stick related to its ownershlp of Pretzel's bonds. (If no entry is requlred for a transactlon/event, select "No journal entry requlred" In the first account fleld.) Journal entry worksheet Record the investment in the bonds of Pretzel Corporation. Note: Enter debits before credits. b. Prepare the journal entrles for 202 for Pretzel related to the bonds. (If no entry is requlred for a transaction/event, select "No Journal entry requlred" In the first account fleld.) Journal entry worksheet Record the investment in Pretzel Corporation bonds by Stick Corporation. Note: Enter debits before credits. Prepare the worksheet consolidation entries needed on December 31,202, to remove the effects of the intercorporate ownership f bonds. (If no entry is requlred for a transactlon/event, select "No journal entry requlred" In the flrst account fleld.) Consolidation Worksheet Entries Record the entry to eliminate the intercompany bond holdings. Note: Enter debits before credits
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