On January $1,2022,$ Allan Company acquired $80$ percent of Bond Company. Of Bond's total business fair value, $$140,000$ was allocated to copyrights with a $20-$year remaining life. Subsequently, on January $1,2023,$ Bond obtained $70$ percent of Cole Company's outstanding voting shares. In this second acquisition, $$129,000$ of Cole's total business fair value was assigned to copyrights that had a remaining life of $12$ years. Bond's book value was $$540,000$ on January $1,2022,$ and Cole reported a book value of $$155,500$ on January $1,2023.$

Bond has made numerous inventory transfers to Allan since the business combination was formed. Intra$-$entity gross profits of $$30,000$ were present in Allan's inventory as of January $1,2024.$ During the year, $$230,000$ in additional intra$-$entity sales were made with $$25,300$ in Intra$-$entity gross profits in inventory remaining at the end of the period.

Both Allan and Bond utilized the equity method to account for their investment balances.

Following are the individual financial statements for the companies for $2024$ with consolidated totals

AccountsAllan CompanyBond CompanyCole CompanyConsolidated TotalsSales$ $(975,000)$$ $(530,000)$$ $(279,400)$$ $(1,554,400)$Cost of goods sold$530,000255,000104,000654,300$Operating expenses$301,500136,50098,500554,250$Income of subsidiary$(146,004)(46,305)00$Separate company net income$ $(289,504)$$ $(184,805)$$ $(76,900)$Consolidated net income$$$ $(345,850)$Net income attributable to noncontrolling interest $($Bond Company$)36,501$Net income attributable to noncontrolling interest $($Cole Company$)19,845$Net income attributable to Allan Company$$$ $(289,504)$Retained earnings, $1/1/24$$ $(602,400)$$ $(450,000)$$ $(115,500)$$ $(602,400)$Net income $($above$)(289,504)(184,805)(76,900)(289,504)$Dividends declared$50,00040,00060,00050,000$Retained earnings, $12/31/24$$ $(841,904)$$ $(594,805)$$ $(132,400)$$ $(841,904)$Cash and receivables$ $277,600$$ $229,375$$ $96,400$$ $603,375$Inventory$297,500492,500212,000976,700$Investment in Bond Company$646,804000$Investment in Cole Company$0237,93000$Property, plant, and equipment$450,000377,500271,0001,098,500$Copyrights$000226,500$Total assets$ $1,671,904$$ $1,337,305$$ $579,400$$ $2,905,075$Liabilities$ $(630,000)$$ $(622,500)$$ $(347,000)$$ $(1,599,500)$Common stock$(200,000)(120,000)(100,000)(200,000)$Retained earnings, $12/31/24(841,904)(594,805)(132,400)(841,904)$Noncontrolling interest in Bond Company, $12/31/24000(161,701)$Noncontrolling interest in Cole Company, $12/31/24000(101,970)$Total liabilities and equities$ $(1,671,904)$$ $(1,337,305)$$ $(579,400)$$ $(2,905,075)$

Note: Parentheses indicate a credit balance.

Required:

Develop the worksheet entries necessary to derive these reported balances:

$1.$ Prepare Entry $*$G to recognize the intra$-$entity gross profit in inventory in $2023.$

$2.$ Prepare entry S$1$ to eliminate stockholders' equity accounts of Cole.

$3.$ Prepare entry S$2$ to eliminate stockholders' equity accounts of Bond.

$4.$ Prepare entry A to recognize allocations attributed to specific accounts at acquisition date for $2024.$

$5.$ Prepare Entry I$1$ to eliminate the intra$-$entity income accrual found on Allan's records.

$6.$ Prepare Entry I$2$ to eliminate the intra$-$entity income accrual found on Bond's records.

$7.$ Prepare Entry D$1$ to eliminate the intra entity dividends for Bond.

$8.$ Prepare Entry D$2$ to eliminate the intra entity dividends for Cole.

$9.$ Prepare Entry E to recognize the current year amortization.

$10.$ Prepare Entry TI to eliminate the intra$-$entity inventory transfer.

$11.$ Prepare Entry G to defer the ending intra$-$entity gross profit on the intra$-$entity transfers.