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Several years ago Brant, Inc., sold $880,000 in bonds to the public. Annual cash interest...

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Accounting

Several years ago Brant, Inc., sold $880,000 in bonds to the public. Annual cash interest of 8 percent ($70,400) was to be paid 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 $110,000 of these bonds on the open market for $131,000, a price based on an effective interest rate of 6 percent.
The bond liability had a carrying amount on that date of $740,000. 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.)
Consolidation
Worksheet Entries
Prepare Consolidation Entry B to account for these bonds on December 31,
Note: Enter debits before credits.
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