P3-8 Based on AICPA] Prepare journal entries to account for interest, consolidated retained earnings, and investment balances On January 1, 2016, Pop Corporation made the following investments: 1. Acquired for cash, 80 perce nt of the outstanding common stock of Son Corporation at $280 per share. The stockholders' equity of Son on January I,2016, consisted of the following: Common stock, par value $100 Retained earnings $200,000 80,000 2. Acquired for cash, 70 percent of the outstanding common stock of Sam Corporation at S160 per share. The stockholders' equity of Sam on January 1,2016, consisted of the following Common stock, par value $40 Capital in excess of par value Retained earnings $240,000 80,000 160,000 An Introduction to Consolidated Financial Statements 3. After these investments were made, Pop was able to exercise control over the operations of both 31 of 33 An Introduction to Consolidated Financial Statements93 3. After these investments were made, Pop was able to exercise control over the operations of both companies An analysis of the retained earnings of each company for 2016 is as follows Pop 960,000 80,000 160,000 18,40044,000 (48,000) 160,000)64,000 36000) Son Sam Balance January Net income (loss) Cash dividends paid Balance December 3 1.218,400000 $76,000 REQUIRED What entries should have been made on the books of Pop during 2016 to record the following? a. Investiments in subsidiaries h. Subsidiary dividends received .Parent's share of subsidiary income or loss 2. Compute the amount of noncontrolling interest in each subsidiary's stockholders' equity at December 31 3. What amount should be reported as comsolidated retained earnings of Pop Corporation and subsikdiaries as 4. Compute the correct balances of Pop's Investment in Son and Investment in Sam accounts at December 2016 of December 31, 2016 31, 2016, before consolidation