and please tell me the journals

P5-7 Consolidation workpapers (upstream sales, no Pal Corporation $2700,000 cash, when Sal had capital stock of $2,000,000 and retained earnings of $500,000. All Sal's tion purchased a 90 percent interest in Sal Corporation on December 31, 2010 for asets and liabilties were recorded at fair values when Pal acquired its interest. The excess of fair value over book value is due to previously unrecorded patent s and is being amortized over a 10-year period. The Pal-Sal affiliation is a vertically integrated merchandising operation, with Sal selling all of its output to Pal Corporation at 140 percent of its cost. Pal sells the merchandise acquired from Sal at 150 percent of its purchase price from Sal. All of Pal's December 31, 2011, and Decem- ber 31, 2012, inventories of $280,000 and $420,000, respectively, were acquired from Sal. Sal's December 31, 2011, and December 31, 2012, inventories were $800,000 each. ed to Sal from 20 Pals accounts payable at December 31, 2012, includes 5100,000 owed to Sal and for the v purchases tive financial statements for Pal Corporation and Sal Corporation at Comparative financi Pal Sal ended December 31, 2012, are as follows (in thousands): Combined Income and Retained Earnings Statement for the Year Ended December 31, 2012 Sales Income from Sal Cost of sales Other expenses $8,190 819 (5,460) (1,544) 2,005 1,200 (1,000) $2,205 $5,600 4,000) (600) 1,000 700 (500) $1,200 Net income Add: Beginning retained earnings Deduct: Dividends Retained earnings December 31, 2012 Balance Sheet at December 31, 2012 Cash Inventory Other current assets Plant assets-net Investment in Sal $ 500 800 200 3,000 $753 420 600 3,000 3,132 $7,905 $1,700 4,000 2,205 $7,905 $4,500 $1,300 2,000 1,200 $4,500 Total assets Current liabilities Capital stocik Retained earnings Total equities REQUIRED: Prepare consolidation workpapers for Pal Corporation and Subsidiary for the yerca December 31, 2012