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This is the question - please help with the two entries! a. Record the entry...

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Accounting

This is the question - please help with the two entries!

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a. Record the entry to eliminate the effects of the intercompany ownership in bonds.

b. Record the entry to eliminate the intercompany interest receivables or payables.

School Perfume Company issued $300,000 of 10 percent bonds on January 1,202, at 110 . The bonds mature 10 years from issue and have semiannual interest payments on January 1 and July 1. Parsons Corporation owns 80 percent of School Perfume stock. On January 1, 20X4, Parsons purchased $100,000 par value of School Perfume bonds in the securities markets for $106,200. Partial trial balances for the two companies on December 31, 20X4, are as follows: Required: Prepare the necessary worksheet consolidation entries as of December 31,204, to remove the effects of the intercorporate bond ownership. Note: 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. Consolidation Worksheet Entries Record the entry to eliminate the effects of the intercompany ownership in bonds. Note: Enter debits before credits

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