Question - On January 1, 2014, P & P Products purchased the $1,000,000 face value, five-year, 8 percent, bonds of Delta Products, a wholly owned subsidiary of P & P, on the open market for $960,000. The bonds are dated, and were issued by Delta Products, on January 1, 2010. The bonds pay interest semiannually each January 1 and July 1. The effective interest method is used to amortize any premium or discount. The market rate is 10 percent.
Required: Make any necessary entries for Delta Products.