Question: 3 Do not prepare bonds payable amortization it has already been answered! Several years ago, Soriano Corporation sold bonds with a face value of $1,000,000

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Do not prepare bonds payable amortization it has already been answered!

3 Do not prepare bonds payable amortization it3 Do not prepare bonds payable amortization it
Several years ago, Soriano Corporation sold bonds with a face value of $1,000,000 to the public at a premium. Annual cash interest of 8 percent (i.e., $80,000) was to be paid on this debt. On January 1, 2019, Padino Inc., the parent company of Soriano Corporation, purchased these bonds on the open market for $940,000. (Hint: Did Padino purchase the bonds at a discount or a premium?) On that date, the bonds had 10 years until maturity and Soriano reported the book value of Bonds Payable of $1,045,000. Assume Padino uses the equity method to internally account for its investment in Soriano. Both parties use the straight-line method of amortization.4. (6 points) What consolidation entry would be required for these bonds on December 31, 20217 Note: Every year since the bond reacquisition, Padino must prepare a consolidation entry. This question asked for the consolidation entry for the year ended December 31, 2021, not December 31, 2020

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