Prepare journal entry that choco record for bond interest

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Reference no: EM132773899

On 1/1/2019, Allie Company issued bonds payable of $500,000 at 8%. It was sold at $464,000 with effective interest rate of 9%. On 1/1/2020, Choco purchased all of Allie's bond for $532,000 cash with effective interest at 7% and Allie's bonds payable has been effectively retired.

Problem 1: Prepare journal entry that Allie will record for bond interest expense on 12/31/2020.

Problem 2: Prepare journal entry that Choco will record for bond interest income on 12/31/2020.

Problem 3: Prepare consolidation entry B on 12/31/2020?

Reference no: EM132773899

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