Exercise 6-7 (Static) Sale of Inventory to Subsidiary LO 6-3 Planet Corporation acquired 90 percent of Saturn Company's voting shares of stock in 20X1. During 20X4, Planet purchased 40,000 Playday doghouses for $24 each and sold 25,000 of them to Saturn for $30 each. Saturn sold 18,000 of the doghouses to retail establishments prior to December 31, 20X4, for $45 each. Both companies use perpetual inventory systems. Required: a. Prepare all journal entries Planet recorded for the purchase of inventory and resale to Saturn Company in 20X4. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Event 1 Inventory View transaction list View journal entry worksheet No A General Journal Cash (Accounts payable) B 2 Interest expense Debit Credit 960,000 960,000 View transaction list Journal entry worksheet A B C Record the purchase of inventory. Note: Enter debits before credits. Event 1 Inventory Cash (Accounts payable) General Journal Debit Credit 960,000 960,000 View general journal Record entry Clear entry View transaction list Journal entry worksheet A B Record the sales of the Playday doghouses. Note: Enter debits before credits. Event General Journal Debit Credit 2 Interest expense Record entry Clear entry View general journal View transaction list Journal entry worksheet