Suspect Company Issued $1,110,000 of 10 percent first mortgage bonds on January 1, 20X1, at 104. The bonds mature in 20 years and pay interest semiannually on January 1 and July 1. Prime Corporation purchased $740,000 of Suspect's bonds from the original purchaser on January 1, 20X5, for $735,800. Prime owns 70 percent of Suspect's voting common stock. Required: a. Prepare the worksheet consolidation entry or entries needed to remove the effects of the Intercorporate bond ownership In preparing consolidated financial statements for 20X5. (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 Event A 1 Bonds payable Interest income Premium on bonds payable Accounts Gain on bond retirement Investment in Suspect Company bonds B 2 Interest payable Interest receivable Debit Credit 740,000 3,276 22,200 x 26,400 x 735,800 37,000 37,000 b. Prepare the worksheet consolidation entry or entries needed to remove the effects of the Intercorporate bond ownership in preparing consolidated financial statements for 20X6. (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 Event A 1 Bonds payable Premium on bonds payable Interest income Accounts Investment in Suspect Company bonds Investment in Suspect Company B 2 Interest payable Interest receivable Debit Credit 740.000 18,280 26,400 735,800 22.500x 37,000 37,000 Required: a. Prepare the worksheet consolidation entry or entries needed to remove the effects of the intercorporate bond ownership In preparing consolidated financial statements for 20X5. (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.) view transaction list Consolidation Worksheet Entries Record the entry to eliminate the effects of the intercompany ownership in bonds for 20x5. Note: Enter debits before credits. Required: Event 1 Accounts Debit Credit Bonds payable 740,000 Interest income 3.278 Premium on bonds payable 22.200 Gain on bond retirement Investment in Suspect Company bonds 26.400 735.800 > a. Prepare the worksheet consolidation entry or entries needed to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements for 20X5. (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.) view transaction list Consolidation Worksheet Entries Record the entry to eliminate the intercompany interest receivables/payables for 20x5. Notes Enter debits before credits. Event 2 Interest payable Interest receivable Accounts Debit Credit 37.000 37.000 b. Prepare the worksheet consolidation entry or entries needed to remove the effects of the intercorporate bond ownership In preparing consolidated financial statements for 20X6. (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 doller.) view transaction list Consolidation Worksheet Entries Record the entry to eliminate the effects of the intercompany ownership in bonds for 20X6. Note: Enter debits before credits, Event Accounts Debit Credit 1 Bonds payable 740,000 Premium on bonds payable Interest income 16.280 26.400 Investment in Suspect Company bonds Investment in Suspect Company 735.800 22.500 > b. Prepare the worksheet consolidation entry or entries needed to remove the effects of the Intercorporate bond ownership In preparing consolidated financial statements for 20X6. (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 dolle view transaction list Consolidation Worksheet Entries Record the entry to eliminate the intercompany interest receivables/payables for 20x6. Note: Enter debits before credits. Event 2 Interest payable interest receivable Accounts Debit Credit 37,000 37.000 10 D7 A x fx B C D E F G H 2 Bond Amortization Calculator Rate Years No. payments Amount 10.00% 20 40 1,110.00 3 Bond Details 4 Bond details 5 6 Bond Issue Price 7 Bond Issue price 104.00% 8 Discount 9 0 Straight Line Method Amortization 11 Number of periods 12 Discount amortization each period 13 14 Effective Interest Method Amortization Schedule 106.73 -1,003.27 Input cells Discount 800 Number of perioc -1.25 15 Period Opening Interest Payment Closing Discount 16 1 106.73 2.78 2.78 106.73 -0.00 17 2 106.73 2.78 2.78 106.73 -0.00 18 3 106.73 2.78 2.78 106.73 -0.00