Pelami Corporation owns a 90% interest in Sunbird Corporation.At December 31,2012,Sunbird had $3,000,000 of par value 6% bonds outstanding with an unamortized premium of $30,000.The bonds have interest payment dates of January 1 and July 1 and mature on January 1,2017.
On January 2,2013,Pelami purchased $1,200,000 par value of Sunbird's outstanding bonds for $1,210,000.Assume straight-line amortization.
Required:
Prepare the necessary consolidation working paper entries with respect to the intercompany bonds for the year ending December 31,2013.

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The Answer of Pelami Corporation owns a 90% interest in Sunbird Corporation.At December 31,2012,Sunbird had $3,000,000 of par value 6% bonds outstanding with an unamortized premium of $30,000.The bonds have interest payment dates of January 1 and July 1 and mature on January 1,2017.
On January 2,2013,Pelami purchased $1,200,000 par value of Sunbird's outstanding bonds for $1,210,000.Assume straight-line amortization.
Required:
Prepare the necessary consolidation working paper entries with respect to the intercompany bonds for the year ending December 31,2013.

Pelami Corporation Owns a 90% Interest in Sunbird Corporation