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Problem 6-30 (Algo) (LO 6-3) Several years ago Brant, Inc., sold $1,120,000 in bonds to the public. Annual cash Interest of 9 percent ($100,800) was to be pald on this debt. The bonds were issued at a discount to yield 12 percent. At the beginning of 2019, Zack Corporation (a wholly owned subsidiary of Brant) purchased $140,000 of these bonds on the open market for $161,000, a price based on an effective Interest rate of 7 percent. The bond liability had a carrying amount on that date of $980,000. Assume Brant uses the equity method to account Internally for its Investment in Zack. a. & b. What consolidation entry would be required for these bonds on December 31, 2019 and December 31, 2021? (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. No Date Accounts Debit Credit 1 202.560 X 11.270 December 31, 201 Bonds payable Interest expense Gain on retirement of debt Investment in bonds 35,000 159,870 Interest expense 19,160 X 2 202.560 X December 31, 20% Bonds payable Interest expense 11,270 Gain on retirement of debt Investment in bonds 35,000 X 159.870 X Interest expense 10.160 Problem 6-30 (Algo) (LO 6-3) Several years ago Brant, Inc., sold $1,120,000 in bonds to the public. Annual cash Interest of 9 percent ($100,800) was to be pald on this debt. The bonds were issued at a discount to yield 12 percent. At the beginning of 2019, Zack Corporation (a wholly owned subsidiary of Brant) purchased $140,000 of these bonds on the open market for $161,000, a price based on an effective Interest rate of 7 percent. The bond liability had a carrying amount on that date of $980,000. Assume Brant uses the equity method to account Internally for its Investment in Zack. a. & b. What consolidation entry would be required for these bonds on December 31, 2019 and December 31, 2021? (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. No Date Accounts Debit Credit 1 202.560 X 11.270 December 31, 201 Bonds payable Interest expense Gain on retirement of debt Investment in bonds 35,000 159,870 Interest expense 19,160 X 2 202.560 X December 31, 20% Bonds payable Interest expense 11,270 Gain on retirement of debt Investment in bonds 35,000 X 159.870 X Interest expense 10.160

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