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Question is half solved please provide the amounts ones are wrong. Pretzel Corporation owns 60 percent of Stick Corporation's voting shares. On January 1, 20X2,
Question is half solved please provide the amounts ones are wrong.
Pretzel Corporation owns 60 percent of Stick Corporation's voting shares. On January 1, 20X2, Pretzel Corporation sold $185,000 par value, 8 percent first mortgage bonds to Stick for $191,000. The bonds mature in 10 years and pay interest semiannually on January 1 and July 1. 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. Do not round your intermediate calculations. Round your final answers to nearest whole dollar.) Answer is complete but not entirely correct. No Date General Journal Debit Credit 1 January 1, 20X2 Investment in Pretzel Corporation bonds 191,000 Cash 191,000 2 July 1, 20X2 Cash 7,400 Interest income 7,100 X Investment in Pretzel Corporation bonds 300 3 December 31, 20X Interest receivable 7,400 Interest income 7,100 Investment in Pretzel Corporation bonds 300 x 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. Do not round your intermediate calculations. Round your final answers to nearest whole dollar.) Answer is not complete. No Date General Journal 1 January 1, 20X2 Debit Cash Credit Bonds payable 191,000 Bond premium 185,000 6,000 2 July 1, 20X2 Interest expense Bond premium Cash 7,100 300 7,400 c. Prepare the worksheet consolidation entries needed on December 31, 20X2, to remove the effects of the intercorporate ownership of bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations. Round your final answers to nearest whole dollar.) X Answer is not complete. No Event Accounts 1 Debit Credit Bonds payable Bond premium Interest income 185,000 5,400 X 142,000 X Investment in Pretzel Corporation bonds Interest expense 190,400 14,200 B 2. Interest payable Interest receivable 7,400 O 7,400Step by Step Solution
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