Snackle Inc.is a 90%-owned subsidiary of Pasha Corp.On January 1,2010,Snackle issued $400,000 of $1,000 face amount 8% bonds at $964 per bond.Interest is paid on January 1 and July 1 of each year and covers the preceding six months.On July 2,2011,Pasha purchased all 400 bonds on the open market for $1,030 per bond.The bonds mature on December 31,2012.Both companies use straight-line amortization.
Required:
With respect to the bonds,use General Journal format to:
1.Record the 2011 journal entries from July 1 to December 31 on Pasha's books.
2.Record the 2011 journal entries from July 1 to December 31 on Snackle's books.
3.Record the elimination entries for the consolidation working papers for the year ending December 31,2011.

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The Answer of Snackle Inc.is a 90%-owned subsidiary of Pasha Corp.On January 1,2010,Snackle issued $400,000 of $1,000 face amount 8% bonds at $964 per bond.Interest is paid on January 1 and July 1 of each year and covers the preceding six months.On July 2,2011,Pasha purchased all 400 bonds on the open market for $1,030 per bond.The bonds mature on December 31,2012.Both companies use straight-line amortization.
Required:
With respect to the bonds,use General Journal format to:
1.Record the 2011 journal entries from July 1 to December 31 on Pasha's books.
2.Record the 2011 journal entries from July 1 to December 31 on Snackle's books.
3.Record the elimination entries for the consolidation working papers for the year ending December 31,2011.