Pretzel Corporation owns 60 percent of Stick Corporation's voting shares. On January 1, 20X2, Pretzel Corporation sold $150,000 par value, 6 percent first mortgage bonds to Stick for $156,000. The bonds mature in 10 years and pay interest semiannually on January 1 and July 1. Note: Assume using straight-line amortization of bond discount or premium. Required: a. Prepare the journal entries for 20X2 for Stick related to its ownership of Pretzel's bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 Record the investment in the bonds of Pretzel Corporation. Note: Enter debits before credits. Date January 1, 20X2 General Journal Debit Credit Record entry View general journal Clear entry b. Prepare the journal entries for 20X2 for Pretzel related to the bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 Record the investment in Pretzel Corporation bonds by Stick Corporation. Note: Enter debits before credits. Date January 1, 20X2 General Journal Debit Credit Record entry View general journal Clear entry >
Pretzel Corporation owns 60 percent of Stick Corporation's voting shares. On January 1, 20X2, Pretzel Corporation sold $150,000 par value, 6 percent first mortgage bonds to Stick for $156,000. The bonds mature in 10 years and pay interest semiannually on January 1 and July 1. Note: Assume using straight-line amortization of bond discount or premium. Required: a. Prepare the journal entries for 20X2 for Stick related to its ownership of Pretzel's bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 Record the investment in the bonds of Pretzel Corporation. Note: Enter debits before credits. Date January 1, 20X2 General Journal Debit Credit Record entry View general journal Clear entry b. Prepare the journal entries for 20X2 for Pretzel related to the bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 Record the investment in Pretzel Corporation bonds by Stick Corporation. Note: Enter debits before credits. Date January 1, 20X2 General Journal Debit Credit Record entry View general journal Clear entry >
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 5PA: Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July...
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Transcribed Image Text:Pretzel Corporation owns 60 percent of Stick Corporation's voting shares. On January 1, 20X2, Pretzel Corporation sold
$150,000 par value, 6 percent first mortgage bonds to Stick for $156,000. The bonds mature in 10 years and pay
interest semiannually on January 1 and July 1.
Note: Assume using straight-line amortization of bond discount or premium.
Required:
a. Prepare the journal entries for 20X2 for Stick related to its ownership of Pretzel's bonds. (If no entry is required for a
transaction/event, select "No journal entry required" in the first account field.)
View transaction list
Journal entry worksheet
1
2
3
Record the investment in the bonds of Pretzel
Corporation.
Note: Enter debits before credits.
Date
January 1,
20X2
General Journal
Debit
Credit
Record entry
View general journal
Clear entry
>
b. Prepare the journal entries for 20X2 for Pretzel related to the bonds. (If no entry is required for a transaction/event,
select "No journal entry required" in the first account field.)
View transaction list
Journal entry worksheet
1 2
3
Record the investment in Pretzel Corporation bonds by
Stick Corporation.
Note: Enter debits before credits.
Date
January 1,
20X2
General Journal
Debit Credit
Record entry
View general journal
Clear entry
>
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