Accidently posted this. please don't do it.

Prime uses the fully adjusted equity method. Trial balances for the two companies on December 31, 20X7, are as follows: $ Steak Company Debit Credit $ 10,000 70,000 110,000 400,000 Item Cash Accounts Receivable Inventory Buildings & Equipment Investment in Steak Company Cost of Goods Sold Depreciation Expense other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Bonds Payable Bond Premium Common Stock Additional Paid-in Capital Retained Earnings Sales Other Income Income from steak Company Total Prime Corporation Debit Credit 130,300 80,000 170,000 600,000 293.000 416,000 30,000 24,000 50.000 5 310.000 100,000 300,000 202,000 20.000 18,000 25.000 200,000 $120,000 15,200 100,000 4,800 100,000 20,000 215,000 250,000 30.000 337,500 500,000 20.400 51,793,300 81,193, 100 95.000 85.000 Additional Information 1. The full amount of the differential at acquisition was assigned to buildings and equipment with a remaining 10-year economic life. 2. Prime and Steak regularly purchase inventory from each other. During 20X6, Steak Company sold inventory costing $40,000 to Prime Corporation for $60,000, and Prime resold 60 percent of the inventory in 20x6 and 40 percent in 20x7. Also in 20X6, Prime sold inventory costing $20,000 to Steak for $26,000. Steak resold two-thirds of the inventory in 20X6 and one-third in 20x7. 3. During 20x7, Steak sold inventory costing $30,000 to Prime for $45.000, and Prime sold items purchased for $9,000 to Steak for $12,000. Before the end of the year, Prime resold one-third of the inventory it purchased from Steak in 20X7 Steak continues to hold all the units purchased from Prime during 20X7 4. Steak owes Prime $10,000 on account on December 31, 20X7 5. Assume that both companies use straight-line depreciation and that no property, plant, and equipment has been purchased since the acquisition Required: a. Prepare the 20x7 journal entries recorded on Prime's books related to its investment in Steak if Prime uses the equity method (if no entry is required for a transaction/event, select "No journal entry required in the first account field) Prime uses the fully adjusted equity method. Trial balances for the two companies on December 31, 20X7, are as follows: $ Steak Company Debit Credit $ 10,000 70,000 110,000 400,000 Item Cash Accounts Receivable Inventory Buildings & Equipment Investment in Steak Company Cost of Goods Sold Depreciation Expense other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Bonds Payable Bond Premium Common Stock Additional Paid-in Capital Retained Earnings Sales Other Income Income from steak Company Total Prime Corporation Debit Credit 130,300 80,000 170,000 600,000 293.000 416,000 30,000 24,000 50.000 5 310.000 100,000 300,000 202,000 20.000 18,000 25.000 200,000 $120,000 15,200 100,000 4,800 100,000 20,000 215,000 250,000 30.000 337,500 500,000 20.400 51,793,300 81,193, 100 95.000 85.000 Additional Information 1. The full amount of the differential at acquisition was assigned to buildings and equipment with a remaining 10-year economic life. 2. Prime and Steak regularly purchase inventory from each other. During 20X6, Steak Company sold inventory costing $40,000 to Prime Corporation for $60,000, and Prime resold 60 percent of the inventory in 20x6 and 40 percent in 20x7. Also in 20X6, Prime sold inventory costing $20,000 to Steak for $26,000. Steak resold two-thirds of the inventory in 20X6 and one-third in 20x7. 3. During 20x7, Steak sold inventory costing $30,000 to Prime for $45.000, and Prime sold items purchased for $9,000 to Steak for $12,000. Before the end of the year, Prime resold one-third of the inventory it purchased from Steak in 20X7 Steak continues to hold all the units purchased from Prime during 20X7 4. Steak owes Prime $10,000 on account on December 31, 20X7 5. Assume that both companies use straight-line depreciation and that no property, plant, and equipment has been purchased since the acquisition Required: a. Prepare the 20x7 journal entries recorded on Prime's books related to its investment in Steak if Prime uses the equity method (if no entry is required for a transaction/event, select "No journal entry required in the first account field)