Exercise 4-4 Poco Company purchased 85% of the outstanding common stock of Serena Company on December 31, 2014, for $321,255 cash. On that date, Serena Company's stockholders' equity consisted of the following: Common stock Other contributed capital Retained earnings $256,500 53,400 48,400 $358,300 During 2017, Serena Company distributed a dividend in the amount of $12,900 and at year-end reported a net loss of $10,700. During the time that Poco Company has held its investment in Serena Company, Serena Company's retained earnings balance has decreased $30,800 to a net balance of $17,600 after closing on December 31, 2017. Serena Company did not declare or distribute any dividends in 2015 or 2016. The difference between book value and the value implied by the purchase price relates to goodwill. Assume that Poco Company uses the equity method. Prepare in general journal form the entries needed in the preparation of a consolidated statements workpaper on December 31, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Round answers to 0 decimal places, e.g. 5,125.) Account Titles and Explanation Debit Credit (To establish reciprocity) (To eliminate investment in subsidiary and create noncontrolling interest) (To record goodwill)