Part II Intercompany Transactions Facts: Sub Co is a 90% owned subsidiary of Parent Co, acquired for $229,635 cash on July 1 , Year 1 , when Sub's net assets consisted of $243,000 capital stock and $12,150 retained earnings. The cost of Parent Co's 90% interest in Sub was equal to book value and fair value of the interest acquired. Parent Co sells inventory items to Sub Co on a regular basis, and the intercompany transaction data for Year 3 are as follows: At December 31, Year 2, Parent Co's investment in subsidiary account had a balance of $312,255. This balance consisted of Parent Co's 90% equity in Sub's $352,350 net assets on that date less $4,860 unrealized profit in Sub's December 31, Year 2 inventory. During Year 3 Parent Co made the following entries in its records for its investment in Sub: The Year 2 intercompany sales that led to the unrealized inventory profits were recognized in Year 3 and the full amount of the unrealized inventory profit originating in Year 3 is deferred at December 31, Year 3. Parent Co's investment in Sub Co increased from $312,255 at January 1, Year 3 to $354,780 at December 31, Year 3, the entire change consisting of $64,395 income less $21,870 dividends for the year. Required: Using the Excel file "Case 1 - Advanced accounting topics" and the worksheet "Intercompany," prepare and show the required adjusting and eliminating journal entries (in journal entry form) and complete the worksheet, posting the journal entries to the worksheet and completing the Consolidated column with the totals. Make sure to appropriately crossreference your journal entries with the worksheet. Show calculations when appropriate. Part II - Intercompany Transactions Part II Intercompany Transactions Facts: Sub Co is a 90% owned subsidiary of Parent Co, acquired for $229,635 cash on July 1 , Year 1 , when Sub's net assets consisted of $243,000 capital stock and $12,150 retained earnings. The cost of Parent Co's 90% interest in Sub was equal to book value and fair value of the interest acquired. Parent Co sells inventory items to Sub Co on a regular basis, and the intercompany transaction data for Year 3 are as follows: At December 31, Year 2, Parent Co's investment in subsidiary account had a balance of $312,255. This balance consisted of Parent Co's 90% equity in Sub's $352,350 net assets on that date less $4,860 unrealized profit in Sub's December 31, Year 2 inventory. During Year 3 Parent Co made the following entries in its records for its investment in Sub: The Year 2 intercompany sales that led to the unrealized inventory profits were recognized in Year 3 and the full amount of the unrealized inventory profit originating in Year 3 is deferred at December 31, Year 3. Parent Co's investment in Sub Co increased from $312,255 at January 1, Year 3 to $354,780 at December 31, Year 3, the entire change consisting of $64,395 income less $21,870 dividends for the year. Required: Using the Excel file "Case 1 - Advanced accounting topics" and the worksheet "Intercompany," prepare and show the required adjusting and eliminating journal entries (in journal entry form) and complete the worksheet, posting the journal entries to the worksheet and completing the Consolidated column with the totals. Make sure to appropriately crossreference your journal entries with the worksheet. Show calculations when appropriate. Part II - Intercompany Transactions