Subsidiary issued 100000 of 8 10year bonds for 103432 on January 1 20X1 when the market rate was 75 Annual interest is paid on December 31Parent purchased the bonds for 95514 on January 120X5 Both companies use the straightline method to amortize the premiumdiscount on the bonds Parent uses the simple equity method to account for its investment in subsidiary cos Stock

Answer rating: 100% (QA)

SNo Account title and Explanation Debit Credit a Bonds payable 700000 Premium on ... View the full answer