Transcribed Image Text: School Perfume Company issued $300,000 of 10 percent bonds on January 1, 20X2, at 110. The bonds mature

Excerpt
of December 31, 20X4, to remove the effects of the intercorporate bond ownersp. (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.)

Transcribed Image Text: School Perfume Company issued $300,000 of 10 percent bonds on January 1, 20X2, at 110. The bonds mature 10 years from issue and
have semiannual interest payments on January 1 and July 1. Parsons Corporation owns 80 percent of School Perfume stock. On
January 1, 20X4, Parsons purchased $100,000 par value of School Perfume bonds in the securities markets for $106,200.
Partial trial balances for the two companies on December 31, 20X4, are as follows:
Parsons
School Perfume
Corporation
$105,640
9,440
Company
Investment in School Perfume Company Bonds
Interest Income
Interest Receivable
5,000
$ 300,000
23,447
27,632
15,000
Bonds Payable
Bond Premium
Interest Expense
Interest Payable
Required:
Prepare the necessary worksheet consolidation entries as of December 31, 20X4, to remove the effects of the intercorporate bond
ownersp. (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.)

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