Question: please provide the amounts the ones are marked wrong E8-7 Constructive Retirement at End of Year (Effective Interest Method) LO 8-2 Suspect Company issued $1,050,000


please provide the amounts the ones are marked wrong
E8-7 Constructive Retirement at End of Year (Effective Interest Method) LO 8-2 Suspect Company issued $1,050,000 of 8 percent first mortgage bonds on January 1, 20X1, at 101. The bonds mature in 20 years and pay interest semiannually on January 1 and July 1. Prime Corporation purchased $700,000 of Suspect's bonds from the original purchaser on December 31, 20X5, for $694,000. Prime owns 70 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 20X5. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Do not round your intermediate calculations. Round your final answers to nearest whole dollar.) Answer is complete but not entirely correct. No Event Accounts Debit Credit 1 Bonds payable Premium on bonds payable 700,000 5,250 Investment in Suspect Company bonds Gain on bond retirement 694,400 11,250 X Interest receivable x 28,000 Interest payable 28,000 B 2 Interest payable Interest receivable 11,200 11,200 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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations. Round your final answers to nearest whole dollar.) Answer is not complete. No Event Accounts Debit Credit 1 Bonds payable Premium on bonds payable 700,000 4,900 Interest income Investment in Suspect Company bonds 10,900 694,800 Interest expense
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