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Several years ago Brant, Inc., sold $1,100,000 in bonds to the public. Annual cash Interest of 9 percent ($99,000) was to be pald on this
Several years ago Brant, Inc., sold $1,100,000 in bonds to the public. Annual cash Interest of 9 percent (\$99,000) was to be pald on this debt. The bonds were Issued at a discount to yleld 12 percent. At the beginning of 2019, Zack Corporation (a wholly owned subsidiary of Brant) purchased $220,000 of these bonds on the open market for $241,000, a price based on an effective Interest rate of 7 percent. The bond Ilability had a carrying amount on that date of $830,000. Assume Brant uses the equity method to account Internally for its Investment In Zack. a. \& b. What consolidation entry would be required for these bonds on December 31, 2019 and December 31,2021 ? (If no entry Is required for a transactlon/event, select "No Journal entry requlred" In the first account field. Round your Intermedlate calculations and final answers to nearest whole number.) Consolidation Worksheet Entries Prepare Consolidation Entry B to account for these bonds on December 31 , 2019. Note: Enter debits before credits. Consolidation Worksheet Entries Prepare Consolidation Entry * B to account for these bonds on December 31 , 2021. Note: Enter debits before credits
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