On January 1, 20X1, Prize Corporation paid Morton Advertising $116,200 to acquire 70 percent of Statue Companys stock. Prize also paid $45,000 to acquire $50,000 par value 8 percent, 10-year bonds directly from Statue on that date. This purchase represented one-half of the bonds that were originally issued. Interest payments are made on January 1 and July 1. The fair value of the noncontrolling interest at January 1, 20X1, was $49,800, and book value of Statues net assets was $110,000. The book values and fair values of Statues assets and liabilities were equal except for buildings and equipment, which had a fair value $56,000 higher than book value and a remaining economic life of 14 years at January 1, 20X1. The trial balances for the two companies as of December 31, 20X3, are as follows:

	Prize Corporation										Statue Company
Item	Debit					Credit					Debit					Credit
Cash and Current Receivables		$	30,300									$	46,000
Inventory			170,000										70,000
Land, Buildings, and Equipment (net)			320,000										180,000
Investment in Statue Bonds			46,046
Investment in Statue Stock			144,835
Discount on Bonds Payable													7,908
Operating Expenses			198,500										161,000
Interest Expense			27,000										8,764
Dividends Declared			60,000										10,000
Current Liabilities							$	35,000									$	33,000
Bonds Payable								300,000										100,000
Common Stock								100,000										50,000
Retained Earnings								238,934										100,672
Sales								300,000										200,000
Interest Income								4,382
Income from Statue Company								18,365
Total		$	996,681				$	996,681				$	483,672				$	483,672

On July 1, 20X2, Statue sold land that it had purchased for $17,000 to Prize for $25,000. Prize continues to hold the land at December 31, 20X3. Assume Prize Corporation uses the fully adjusted equity method. Required: a. Prepare the journal entries for 20X3 on Prizes books related to its investment in Statues stock and bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations. Round your final answers to nearest whole dollar.)

b. Prepare the entries for 20X3 on Statues books related to its bond issue. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations. Round your final answers to nearest whole dollar.)

c. Prepare consolidation entries needed to complete a consolidation worksheet for 20X3. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations. Round your final answers to nearest whole dollar.)

d. Prepare a three-part consolidation worksheet for 20X3. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.)

Journal entry worksheet Record the receipt of bond interest. Note: Enter debits before credits. General Journal Debit Credit Date July 1, 20X3 Record entry Clear entry View general journal Journal entry worksheet Record the semiannual payment of interest. Note: Enter debits before credits. General Journal Debit Credit Date July 1, 20X3 Record entry Clear entry View general journal Consolidation Worksheet Entries Record the basic consolidation entry. Note: Enter debits before credits. Event Accounts Debit Credit 1 Record entry Clear entry view consolidation entries Consolidation Worksheet Entries Record the amortized excess value reclassification entry. Note: Enter debits before credits. Accounts Debit Credit Event 2 Record entry Clear entry view consolidation entries Consolidation Worksheet Entries Record the excess value (differential) reclassification entry. Note: Enter debits before credits. Accounts Debit Credit Event 3 Record entry Clear entry view consolidation entries Consolidation Worksheet Entries Record the entry to eliminate the intercompany interest receivables/payables. Note: Enter debits before credits. Accounts Debit Credit Event 6 Record entry Clear entry view consolidation entries PRIZE CORPORATION AND SUBSIDIARY Consolidated Financial Statement Worksheet December 31, 20X3 Consolidation Entries Prize Corp. Statue Company DR CR Consolidated Income Statement Sales Interest Income 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Less: Other Expenses Less: Interest Expense Income from Statue Company Consolidated Net Income NCI in Net Income Controlling Interest in Net Income Statement of Retained Earnings Beginning Balance Net Income Less: Dividends Declared Ending Balance Balance Sheet Assets Cash & Current Receivables Inventory Land, Buildings, & Equipment (net) Investment in Statue Stock Investment in Statue Bonds Total Assets Liabilities & Equity Current Liabilities Bonds Payable Discount on Bonds Payable Common Stock 0 0 0 0 0 Retained Earnings NCI in NA of Statue Company Total Liabilities & Equity 0 0 0 0