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Punk Corporation purchased 90 percent of Soul Company's voting common shares on January 1,202, at underlying book value. At that date, the fair value of
Punk Corporation purchased 90 percent of Soul Company's voting common shares on January 1,202, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 10 percent of the book value of Soul Company. Punk also purchased $87,000 of 6 percent, five-year bonds directly from Soul on January 1,202, for $91,000. The bonds pay interest annually on December 31. The trial balances of the companies as of December 31,204, are as follows: b. Prepare the journal entry or entries for 204 on Punk's books related to its investment in Soul Company bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record the entry for the interest income on the bond investment. Note: Enter debits before credits
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