Parent Company purchased a 90% interest in Subsidiary Company on January 1. 2011, for $675,000. Any excess cost was attributed to goodwill. Equity balances for Subsidiary Company on January 1. 2011 were as follows:

Common Stocks 200,000 Paild-in Capital 100,000 Retained Earnings 300,000 Subsidiary sold a machine to Parent for $30,000 on January 1. 2014. Subsidiary's cost of the machine was $20,000. The machine has a 5-year life and is being depreciated on a straight-line basis. During 2016, Parent sold merchandise to Subsidiary for $50.000. Parent records a 30% gross profit on the sale. $20,000 of the goods held by Subsidiary, purchased from Parent, is still in inventory at year-end. Subsidiary issued $200,000 of face value, 9% bonds to yield 10% effective interest on January 1, 2008. On December 31, 2015, the amortized balance was $192,418. On December 31, 2015, Parent purchased % the bonds for $89,186 to yield 12% effective interest. At the time of the purchase, the bonds had 5 years to maturity. Both companies use effective interest amortization The trial balances of Parent and Subsidiary are inserted on the partial worksheet attached that is dated December 31, 2016.

	Parent	Subsid.
Inventory	25000	80000
Invest. in sub. Stock	675,000
Invest. in sub. bonds	90888
Equip.	371190	1522413
Acc.Depr.	-200000	-600000
Goodwill
BondsPay.		-200000
Disc. on B/P		6345
Com. Stock-Parent	-200000
PIC-Parent	-300000
R.E.-Parent	-401376
Com. Stock-Sub		-200000
PIC-Sub		-100000
R.E. -Sub		-500000
Sales	-300000	-260000
COGS	100000	72000
Int. Exp.		19242
Other Exp.	150000	160000
Int. Rev	-10702
Totals	0	0

Totals Required: Write the necessary journal entries for the following eliminations and adjustments necessary to prepare the consolidated worksheet (no need to make the Income Distribution Schedules): mention and briefly explain, including calculations, the correct elimination/adjustment keys against the journal entries:

1. Date alignment 2. Eliminatian of subsidiary equity accounts 3. Distribution of Excess 4. Intercompany sale of equipment 5. Intercompany merchandise sales 6Intercompany purchase of bonds