On November 1, 2005, Phaser Corporation issued to the public $1,000,000 face amount of 9%, 10-year bonds maturing November 1, 2015, for $1,067,100, a yield rate of 8%. Interest on the bonds was payable annually beginning November 1, 2006. On October 31, 2006, Sedd Company, the 70%-owned subsidiary of Phaser, acquired in the open market $300,000 face amount of Phaser's outstanding 9% bonds for $282,723, a yield rate of 10%, plus accrued interest.
a. Prepare journal entries for Phaser Corporation on November 1, 2005, and October 31, 2006, related to the bonds. Omit explanations for the journal entries and disregard bond issue costs and income taxes.
b. Prepare a working paper elimination (in journal entry format) for Phaser Corporation and subsidiary on October 31, 2006 (the date Sedd Company acquired the Phaser Corporation bonds and the fiscal year end). Omit explanation and disregard income taxes.

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The Answer of On November 1, 2005, Phaser Corporation issued to the public $1,000,000 face amount of 9%, 10-year bonds maturing November 1, 2015, for $1,067,100, a yield rate of 8%. Interest on the bonds was payable annually beginning November 1, 2006. On October 31, 2006, Sedd Company, the 70%-owned subsidiary of Phaser, acquired in the open market $300,000 face amount of Phaser's outstanding 9% bonds for $282,723, a yield rate of 10%, plus accrued interest.
a. Prepare journal entries for Phaser Corporation on November 1, 2005, and October 31, 2006, related to the bonds. Omit explanations for the journal entries and disregard bond issue costs and income taxes.
b. Prepare a working paper elimination (in journal entry format) for Phaser Corporation and subsidiary on October 31, 2006 (the date Sedd Company acquired the Phaser Corporation bonds and the fiscal year end). Omit explanation and disregard income taxes.

On November 1, 2005, Phaser Corporation Issued to the Public