Par Corporation holds 60 percent of Short Publishing Company's voting shares. Par issued $590,000 of 10 percent bonds with a 10-year maturity on January 1, 20X2, at 92. On January 1, 20X8, Short purchased $118,000 of the Par bonds for $124,000. Partial trialbalances for the two companies on December 31, 20X8, are as follows:Note: Assume using straight-line amortization of bond discount or premium.ParShortPublishing CompanyCorporation$130,000Investment in Short Publishing Company StockInvestment in Par Corporation BondsBonds PayableDiscount on Bonds Payable$123,500590,00017,00061,000Interest ExpenseInterest Income8,700Interest PayableInterest Receivable20,0005,900Required:Prepare the worksheet consolidation entry or entries needed on December 31, 20X8, to remove the effects of the intercorporate bondownership in preparing consolidated financial statements. (If no entry is required for a transaction/event, select "No journal entryrequired" in the first account field.)view transaction listtransaction listNoEventAccountsDebitCreditA1Bonds payableInterest incomeLoss on bond retirementInvestment in Par Corporation bondsDiscount on bonds payableInterest expenseInterest payableInterest receivable

No. Event Account Debit Credit A 1 Bonds Payable 118,000 Interest Income 10,300…

Required: Prepare the worksheet consolidation entry or entries needed on December 31, 20X8, to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Required: Prepare the worksheet consolidation entry or entries needed on December 31, 20X8, to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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