In: Accounting
a | Journal entries recorded by Hunbolt | ||
Jan 1, 20X2 | Investment in Lamar corporation Bonds | $156,000 | |
Cash | $156,000 | ||
July 1, 20X2 | Cash | $4,500 | |
Interest Income | $4,200 | ||
Investment in Lamar Corporation Bonds | $300 | ||
Dec 31, 20X2 | Interest receivable | $4,500 | |
Interest Income | $4,200 | ||
Investment in Lamar Corporation Bonds | $300 | ||
b | Journal entries recorded by Lamar corporation | ||
Jan 1, 20X2 | Cash | $156,000 | |
Bonds Payable | $150,000 | ||
Bonds Premium | $6,000 | ||
July 1, 20X2 | Interest expense | $4,200 | |
Bond Premium | $300 | ||
Cash | $4,500 | ||
Dec 31, 20X2 | Interest expense | $4,200 | |
Bond Premium | $300 | ||
Interest payable | $4,500 | ||
c | Eliminating entries on Dec 31, 20X2 | ||
Dec 31, 20X2 | Bonds Payable | $150,000 | |
Bonds Premium | $5,400 | ||
Interest income | $8,400 | ||
Interest expense | $8,400 | ||
Investment in Lamar corporation bonds | $155,400 | ||
Dec 31, 20X2 | Interest receivable | $4,500 | |
Interest payable | $4,500 |