Question: 5) Prepare a journal entry that Choco will record for bond interest income on 12/31/2020. (5 points) On 1/1/2019, Allie Company issued bonds payable of

5) Prepare a journal entry that Choco will record for bond interest income on 12/31/2020. (5 points)

On 1/1/2019, Allie Company issued bonds payable of $500,000 at 8%. It was sold at $464,000 with effective interest rate of 9%. On 1/1/2020, Choco purchased all of Allies bond for $532,000 cash with effective interest at 7% and Allies bonds payable has been effectively retired.

6) Prepare consolidation entry B on 12/31/2020? (6 points)

7) Prepare a journal entry that Allie will record for bond interest expense on 12/31/2021. (3 points)

8) Prepare a journal entry that Choco will record for bond interest income on 12/31/2021. (3 points)

9) Prepare consolidation entry B on 12/31/2021? (6 points)

PLEASE ANSWER IN ORDER OF QUESTION AND LABEL EACH ANSWER, DO NOT CLUSTER JOURNAL ENTRIES TOGETHER PER COMPANY

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