Question: Assume the same facts as in E8 12 but prepare entries

Assume the same facts as in E8-12 but prepare entries using straight-line amortization of bond discount or premium.
In E8-12
Bundle Company issued $500,000 par value, 10-year bonds at 104 on January 1, 20X3, which Mega Corporation purchased. The coupon rate on the bonds is 11 percent. Interest payments are made semiannually on July 1 and January 1. On July 1, 20X6, Parent Company purchased $200,000 par value of the bonds from Mega for $192,200. Parent owns 70 percent of Bundle's voting shares.

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  • CreatedMay 23, 2014
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