In preparing the consolidation worksheet for Pencil Corporation and its 60 percent-owned subsidiary. Stylus Company, the following consolidation entries were proposed by Pencil's bookkeeper: To eliminate the unpald balance for intercorporate inventory sales in 205. To eliminate unrealized inventory profits at December 31,205. To eliminate intercompany sales for 205 Pencills bookkeeper recently graduated from Oddball University, and aithough the dollar amounts recorded are correct, he had some confusion in determining which accounts needed adjustment. All intercorporate sales in 205 were from Stylus to Peneil, and Stylus sells idventory at cost plus 40 percent of cost. Pencil uses the fully adjusted equity method in accounting for its ownership in Stylus. . Prepare the appropriate consolidation entrles needed at December 31,205, to prepare consolidated financlal statements. Note: If no entry is required for a transaction/event, select "No journol entry required" in the first account field. Do not round intermediate calculations. Consolidation Worksheet Entries Record the entry to elimitate intercompany recelvable/payable. Notes Enter detits before credits