The Parent purchased 80% of the Sub on January 1, 2000. On January 1, 2011, the Sub issued $1,000,000 of Bonds Payable with a stated rate of 10% when the market was 9%. The bonds pay interest annually every January 1st.

On January 1, 2014, the Parent purchased all of the bonds at a time when the market rate was 8%, thus the price paid for the Bonds was $1,104,127. Below are the amortization tables for both companies using the effective interest rate method.

Original Bonds issued by Subsidiary Date Carrying Value Cash Paid Interest Expense Premium Amortized Premium Balance Carrying Value 1/1/11 $1,064,176 12/31/11 $100,000 $95,776 $4224 $59,952 $1,059,952 12/31/12 $100,000 $95,396 $4604 $55,348 $1,055,348 12/31/13 $100,000 $94,981 $5019 $50,329 $1,050,329 12/31/14 $100,000 $94,530 $5470 $44,859 $1,044,859 12/31/15 $100,000 $94,037 $5963 $38,896 $1,038,896 12/31/16 $100,000 $93,501 $6499 $32,397 $1,032,397 12/31/17 $100,000 $92,916 $7084 $25,313 $1,025,313 12/31/18 $100,000 $92,278 $7722 $17,591 $1,017,591 12/31/19 $100,000 $91,583 $8417 $ 9,174 $1,009,174 12/31/20 $100,000 $90,826 $9174 $-0- $1,000,000

Bonds purchased by Parent Date Carrying Value Cash Received Int Revenue Premium Amort Carrying Value of Bonds 1/1/14 $1,104,127 12/31/14 $100,000 $88,330 $11,670 $1,092,457 12/31/15 $100,000 $87,397 $12,603 $1,079,854 12/31/16 $100,000 $86,388 $13,612 $1,066,242 12/31/17 $100,000 $85,299 $14,701 $1,051,542 12/31/18 $100,000 $84,123 $15,877 $1,035,665 12/31/19 $100,000 $82,853 $17,147 $1,018,519 12/31/20 $100,000 $81,481 $18,519 $1,000,000

Required: (you may find it helpful to create your own elimination column worksheet and list the all of the accounts associated with bonds and then eliminate, but you do not have to do an entire worksheet, all I want you to do is the journal entries)

Make the elimination entries for 2017

Make the elimination entries for 2019