$5-6($Algo$)$ Realized Profit on Intercompany Sale i

Soved

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Planet Corporation acquired $90$ percent of Saturn Company's voting shares of stock in $20$X$1.$ During $20$X$4,$ Planet purchased $52,000$ Playday doghouses for $$28$ each and sold $37,000$ of them to Saturn for $$34$ each. Saturn sold all of the doghouses to retail establishments prior to December $31,20$X$4,$ for $$49$ each. Both companies use perpetual inventory systems.

Required:

a$.$ Prepare the journal entries Planet recorded for the purchase of inventory and resale to Saturn Company in $204.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journol entry required" in the first