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

Question: 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

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 10-year bonds at 104 on January 1, 20X3, which Mega purchased. The 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 of the bonds from Mega for $192,200. Parent owns 70 percent of Bundle's voting shares.

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