Nordway Corporation acquired 90 percent of Olman Companys voting shares of stock in 20X1. During 20X4, Nordway purchased 52,000 Playday doghouses for $28 each and sold 37,000 of them to Olman for $35 each. Olman sold 30,000 of the doghouses to retail establishments prior to December 31, 20X4, for $50 each. Both companies use perpetual inventory systems.

Prepare the journal entries Olman recorded for the purchase of inventory and resale to retail establishments in 20X4.

• Record the purchase of inventory on account.
• Record the sales of the Playday doghouses.
• Record the cost of goods sold.

Prepare the worksheet consolidation entry(ies) needed in preparing consolidated financial statements for 20X4 to remove the effects of the intercompany sale.

Record the consolidation entry.