Several years ago, Brant, Incorporated, sold $960,000 in bonds to the public. Annual cash interest of...

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Several years ago, Brant, Incorporated, sold $960,000 in bonds to the public. Annual cash interest of 9 percent ($86,400) was to be paid on this debt. The bonds were issued at a discount to yield 12 percent. At the beginning of 2022. Zack Corporation (a wholly owned subsidiary of Brant) purchased $120,000 of these bonds on the open market for $141,000, a price based on an effective interest rate of 7 percent. The bond liability had a carrying amount on that date of $820,000. Assume Brant uses the equity method to account internally for its investment in Zack. Required: a. & b. What consolidation entry would be required for these bonds on December 31, 2022 and December 31, 2024? Note: If no entry is required for a transaction/event, select "No journal entry required" In the first account field. Round your Intermediate calculations and final answers to nearest whole number. Answer is not complete. Accounts Debit 1 2 No Date December 31, 202 Bonds payable Interest income Loss on retirement of debt Investment in bonds Interest expense December 31, 202 Bonds payable Interest income Investment in Zack Investment in bonds Interest expense 104,350x Credit 9,870 38,500 138,870 x 18,600 x 9,735 138,010 Several years ago, Brant, Incorporated, sold $960,000 in bonds to the public. Annual cash interest of 9 percent ($86,400) was to be paid on this debt. The bonds were issued at a discount to yield 12 percent. At the beginning of 2022. Zack Corporation (a wholly owned subsidiary of Brant) purchased $120,000 of these bonds on the open market for $141,000, a price based on an effective interest rate of 7 percent. The bond liability had a carrying amount on that date of $820,000. Assume Brant uses the equity method to account internally for its investment in Zack. Required: a. & b. What consolidation entry would be required for these bonds on December 31, 2022 and December 31, 2024? Note: If no entry is required for a transaction/event, select "No journal entry required" In the first account field. Round your Intermediate calculations and final answers to nearest whole number. Answer is not complete. Accounts Debit 1 2 No Date December 31, 202 Bonds payable Interest income Loss on retirement of debt Investment in bonds Interest expense December 31, 202 Bonds payable Interest income Investment in Zack Investment in bonds Interest expense 104,350x Credit 9,870 38,500 138,870 x 18,600 x 9,735 138,010

Answer rating: 100% (QA)

To determine the consolidation entries for the bonds on December 31 2022 and December 31 2024 we nee... View the full answer