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    adem43's Avatar
    adem43 Posts: 1, Reputation: 1
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    Nov 11, 2014, 02:16 AM
    Advanced Accounting: Bond amortization
    Dundee Company issued $1,000,000 par value 5-year bonds at 102 on January 1, 2004, which Mega Corporation purchased. The coupon rate on the bonds is 9 percent. Interest payments are made annually on January 1. On January 1, 2006, Perth Company purchased $500,000 par value of the bonds from Mega for $492,200. Perth owns 65 percent of Dundee's voting shares. Both company's use straight line amortization of any discount or premium.

    A. prepare bond amortization schedules for both Dundee and Perth for all years.
    B. prepare all book entries for perth and Dundee for 2006 to record the effects of the bond ownership

    C. Prepare the worksheet eliminating entry or entries needed to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements at Dec 31, 2006

    If you can help me on this question, I would really appreciate it... email me at [email protected]
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    Nov 11, 2014, 02:22 AM
    Can't do your homework for you and any answers will be posted on this site there is provision for messaging here

    If you have a specific problem, what is it?
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