Consolidation Worksheet Entries Note: Enter debits before cred its. Purse Corporation owns 70 percent of Scarf Company's voung shares, On January 1, 20X3. Scarf sold bonds wth a par value of $667,500 at 98 . Purse purchased $445,000 par value of the bonds, the remalnder was sold to nonaffillates. The bonds mature in five years and pay an annual interest rate of 8 percent. Interest is pald semlannually on January 1 and July 1. Required: a. What amount of interest expense should be reported in the 204 consolidated income statement? b. Prepare the journal entries Purse recorded during 204 wth regard to its investment in Scarf bonds. c. Prepare all worksheet consolidation entries needed to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements for 204. Complete this question by entering your answers in the tabs below. What amount of interest expense should be reported in the 204 consolidated incorne statement? Notei Do not round your intermediate calculations. Round your findal answer to nesrest whole dollar. Consolidation Worksheet Entries Record the entry to eliminate intercompany receivables or payables. Note: Enter debits before crecits. Consolidation Worksheet Entries Record the interest received on the bonds. Note: Enter debits before credets. Consolidation Worksheet Entries mose: enter qupts peone crears: Record the entry to eliminate the effects of the intercompany ownership in the bonds. Nose: Enter dobits setere croc ts