Assume the same facts as in E8 9 but prepare entries using straight line amortization of bond discount or premium In E8 9 Farley Corporation owns 70 percent of Snowball Enterprises ' stock On January 1, 20X1, Farley sold $1,000,000 par value, 7 percent (paid semiannually), 20 year, first mortgage bonds to Kling Corporation at 97 On January 1, 20X8, Snowball purchased $300,000 par value of the Farley bonds directly from Kling for $296,880

Question: Assume the same facts as in E8-9 but prepare entries using straight-line amortization of bond discount or premium. In E8-9 Farley Corporation owns 70 percent

Assume the same facts as in E8-9 but prepare entries using straight-line amortization of bond discount or premium.

In E8-9
Farley owns 70 percent of Snowball Enterprises' stock. On January 1, 20X1, Farley sold $1,000,000 7 percent (paid semiannually), 20-year, first mortgage bonds to Kling at 97. On January 1, 20X8, Snowball purchased $300,000 of the Farley bonds directly from Kling for $296,880.

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