Bliss Perfume Company issued 300 000 of 10 percent bonds on
Bliss 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 Bliss Perfume stock. On January 1, 20X4, Parsons purchased $100,000 par value of Bliss Perfume bonds in the securities markets for $106,200. Partial trial balances for the two companies on December 31, 20X4, are as follows:

Prepare the necessary worksheet elimination entries as of December 31, 20X4, to remove the effects of the intercorporate bondownership.
Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
Relevant Tutors available to help