Assume the same facts as in E8-1 and prepare entries using straight-line amortization of bond discount or

Question:

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.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...