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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Paka Corporation owns an 80% interest in Sandra Company. Paka acquired Sandra's bonds on January 2, 2014. The following information is from the adjusted
Required:
Prepare the necessary consolidation working paper entries on December 31, 2014 with respect to the intercompany bonds.
![Paka
Sandra
Investment in Sandra Bonds, $100,000 par 98,500
7% Bonds payable, $200,000
Bond premium
200,000
6,000
Interest expense
12,000
Interest receivable
7,000
Interest income
7,500
Interest payable
7,000](https://content.bartleby.com/qna-images/question/38353b79-57a0-4f8f-a422-8aa434d6100e/ea55ae41-c37c-4715-a8ff-c9147d0fbdcf/6z7d21th_thumbnail.png)
Transcribed Image Text:Paka
Sandra
Investment in Sandra Bonds, $100,000 par 98,500
7% Bonds payable, $200,000
Bond premium
200,000
6,000
Interest expense
12,000
Interest receivable
7,000
Interest income
7,500
Interest payable
7,000
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