Saved Help Save Calrns owns 75 percent of the voting stock of Hamilton, Inc. The parent's interest was acquired several years ago on the date that the subsidiary was formed. Conse equity method In its internal records to account for its investment in Hamilton. quently, no goodwill or other allocation was recorded in connection with the acquisition. Cairns uses the On January 1, 2014, Hamilton sold $1,200,000 in 10-year bonds to the public at 115. The bonds had a cash interest rate of 9 percent payable every December 31. Cairns acquired 40 percent of these bonds at 88 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 fo 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 vew transection lst Worksheet Entries 3 Prepare Entry B to eliminate accounts stemming from intra-entity bonds and to recognize the gain on the effective retirement of this debt. Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2016 view consoldation entries Clear entry Record entry Next K Prev 4 of 4 Consolidation Worksheet Entries Prepare Entry *B to remove the intra-entity bond accounts that remain on the individual records of both companies Note: Enter debits before credits. Debit Credit Date Accounts December 31, 2017 Clear entry Rocord entry vlew entries Saved Consolidation Worksheet Entries Prepare Entry *B to remove the intra-entity bond accounts that remain on the individual records of both companies Note: Enter debits before credits. Dato Credit Accounts Debit December 31, 2018 Record entry Clear entry vlew consolidation entrles