Popcorn Corporation Owns 90% of the Outstanding Voting Common Stock

question 1

Essay

Popcorn Corporation owns 90% of the outstanding voting common stock of Salty Corporation.On January 1,2005,Salty issued $1,000,000 face amount of 12%,$1,000 bonds payable at 119.20.The bonds pay interest on January 1 and July 1 of each year and mature on January 1,2013.On July 2,2010,Popcorn purchased all of the outstanding bonds at a price of 107.50.Both companies use straight-line amortization.
Required:
1.Prepare the journal entries for July 1,2010 through December 31,2010 for Popcorn Corporation.
2..Prepare the journal entries for July 1,2010 through December 31,2010 for Salty Corporation.
3.Prepare the elimination entries necessary on the consolidating working papers for the year ended December 31,2010.

---

Definitions:

American Slaves

Individuals held in bondage and forced into labor without pay, primarily in the United States before the abolition of slavery with the Thirteenth Amendment in 1865.

Bermuda

A British Overseas Territory in the North Atlantic Ocean, known for its pink sand beaches, subtropical climate, and as a popular tourist destination.

British Empire

The historical empire ruled by Britain, characterized by its vast colonies and dominions across the world, particularly during the 19th and early 20th centuries.

Slave-Based Colony

A colony whose economy and social structure are heavily dependent on the labor of enslaved people.