I am struggling to do E8-7A

E8-7 Constructive Retirement at End of Year (Effective Interest Method) Suspect Company issued $600,000 of 9 percent first mortgage bonds on January 1,20XI, at 103. The bonds mature in 20 years and pay interest semiannually on January 1 and July 1 . Prime Corporation purchased $400,000 of Suspect's bonds from the original purchaser on December 31, 20X5, for $397,000. Prime owns 60 percent of Suspect's voting common stock. Required a. Prepare the worksheet consolidation entry or entries needed to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements for 20Xs. b. Prepare the worksheet consolidation entry or entries needed to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements for 20X6. 8-2 Pasc 421 E8-7A Constructive Retirement at End of Year (Straight-Line Method) Assume the same facts as in E8-7 but prepare entries using straight-line amortization of bond discount or premium