Spott is a 75%-owned subsidiary of Penthal. On January 1, 2013, Spott issued $900,000 of $1,000 face amount 8% bonds at par. The bonds have interest payments on January 1 and July 1 of each year and mature on January 1, 2017. On January 2, 2014, Penthal purchased all 900 bonds on the open market for $1,020 per bond. Both companies use straight-line amortization.

Required: With respect to the bonds, use General Journal format to:

1. Record the 2014 journal entries from July 1 to December 31 on Spott's books.

2. Record the 2014 journal entries from July 1 to December 31 on Penthal's books.

3. Record the elimination entries for the consolidation working papers for the year ending December 31, 2014.