06-3 E6-6 Realized Profit on Intercompany Sale Planet Corporation acquired 90 percent of Saturn Company's voting shares of stock in 20X1. D. ing 20X4, Planet purchased 40,000 Playday doghouses for $24 each and sold 25,000 of them Saturn for $30 each. Saturn sold all of the doghouses to retail establishments prior to December 31 20X4, for $45 each. Both companies use perpetual inventory systems. Required a. Give the journal entries Planet recorded for the purchase of inventory and resale to Saturn Com pany in 20X4. b. Give the journal entries Saturn recorded for the purchase of inventory and resale to retail estah. lishments in 20X4. C. Give the worksheet consolidation entry(ies) needed in preparing consolidated financial state, ments for 20X4 to remove all effects of the intercompany sale. 6-3 E6-7 Sale of Inventory to Subsidiary Planet Corporation acquired 90 percent of Saturn Company's voting shares of stock in 20X1. Dur! ing 20X4. Planet purchased 40,000 Playday doghouses for $24 each and sold 25,000 of them to Saturn for $30 each. Saturn sold 18,000 of the doghouses to retail establishments prior to Decem ber 31, 20X4, for $45 each. Both companies use perpetual inventory systems. Required a. Give all journal entries Planet recorded for the purchase of inventory and resale to Saturn Com- pany in 20X4. b. Give the journal entries Saturn recorded for the purchase of inventory and resale to retail estab- lishments in 20X4. c. Give the worksheet consolidation entry(ies) needed in preparing consolidated financial state ments for 20X4 to remove the effects of the intercompany sale