On January 1, Company A borrows $200,000 from Company B by issuing to Company A $200,000 par value , 8%, 10 year bonds. Because the market rate was higher than 8%.A discount of $500 was provided on the boond.

During the year, Company A accrued interest of $16,000, and Company B recorded the same in interest income.

 

Which two accounts must used to eliminate this intercompany debt transfer?

Answer rating: 100% (QA)

The two accounts that must be used to eliminate this intercompany debt transfer are 1 Bonds Payable ... View the full answer