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Pretzel Corporation owns 60 percent of Stick Corporation's voting shares. On January 1, 20X2, Pretzel Corporation sold $150,000 par value, 6 percent first mortgage bonds
Pretzel Corporation owns 60 percent of Stick Corporation's voting shares. On January 1, 20X2, Pretzel Corporation sold $150,000 par value, 6 percent first mortgage bonds to Stick for $156,000. The bonds mature in 10 years and pay interest semiannually on January 1 and July 1. Note: Assume using straight-line amortization of bond discount or premium. Required: a. Prepare the journal entries for 20X2 for Stick related to its ownership of Pretzel's bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the investment in the bonds of Pretzel Corporation Note: Enter debits before credits. General Journal Debit Credit Date January 1, 20X2 Record entry View general journal Clear entry b. Prepare the journal entries for 20x2 for Pretzel related to the bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the investment in Pretzel Corporation bonds by Stick Corporation. Note: Enter debits before credits. General Journal Debit Credit Date January 1, 20X2 Record entry View general journal Clear entry
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