Question: Assume the same facts as in E8 1 and prepare entries

Assume the same facts as in E8-1 and prepare entries using straight-line amortization of bond discount or premium.
In E8-1
Lamar Corporation owns 60 percent of Humbolt Corporation’s voting shares. On January 1,20X2, Lamar Corporation sold $150,000 par value, 6 percent first mortgage bonds to Humbolt for $156,000. The bonds mature in 10 years and pay interest semiannually on January 1 and July 1.

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  • CreatedMay 23, 2014
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