Payday Company acquired an 80% interest in Sunday Company for $272,000 cash on January 1, 2018. Sunday had the following Balance Sheet on the date of acquisition: Sunday Company Balance Sheet January 1, 2018 Assets (5) Liabilities ($) Accounts Receivable 90,000 Accounts Payable 50,000 Depreciable Fixed Assets 200,000 Bonds Payable 50,000 Land 50,000 Discount on Bonds Payable (1,620) Goodwill 10,000 Common Stock ($10 par) 100,000 Retained Earnings 151,620 Total Assets 350,000 Total Liabilities & Equity 350,000 The excess of the price paid over book value is attributable to the Depreciable Fixed Assets, which have a fair value of $260,000. The Depreciable Assets have a 10-year remaining life. Sunday sold a piece of Land to Payday for $60,000 on January 1, 2019. It cost Sunday $50,000 to purchase the land from an external party. On January 1, 2020, Sunday held merchandise acquired from Payday for $20,000. This beginning inventory had an applicable gross profit of 40%. During 2020, Payday sold $60,000 worth of merchandise to Sunday. Sunday held $30,000 of this merchandise at December 31, 2020. This ending inventory and an applicable grass profit of 35%. Sunday owed Payday $23,000 on December 31, 2020 as a result of these intercompany sales. On January 1, 2020, Payday held merchandise acquired from Sunday for $10,000. This beginning inventory had an applicable gross profit of 25%. During 2020, Sunday sold $40,000 worth of merchandise to Payday. Payday held $6,000 of this merchandise at December 31, 2020. This ending inventory had an applicable gross profit of 30%. Payday owed Sunday $11,000 on December 31, 2020 as a result of these intercompany sales. Sunday sold bonds on January 1, 2017 with a face value of $50,000. These bonds carry a coupon interest rate of 8% and term to maturity of 5 years. The bonds were issued when the market rate was 9%. When Payday purchased these bonds on January 1, 2019, the market rate was 10%. Both companies use the Effective Interest method to amortize the premium/discount on the bonds. (2) Prepare the Eliminating and Adjusting Entries, the Schedules and Worksheet necessary to produce the consolidated financial statements of Payday Company and its subsidiary for the year ended December 31, 2019. Payday Company acquired an 80% interest in Sunday Company for $272,000 cash on January 1, 2018. Sunday had the following Balance Sheet on the date of acquisition: Sunday Company Balance Sheet January 1, 2018 Assets (5) Liabilities ($) Accounts Receivable 90,000 Accounts Payable 50,000 Depreciable Fixed Assets 200,000 Bonds Payable 50,000 Land 50,000 Discount on Bonds Payable (1,620) Goodwill 10,000 Common Stock ($10 par) 100,000 Retained Earnings 151,620 Total Assets 350,000 Total Liabilities & Equity 350,000 The excess of the price paid over book value is attributable to the Depreciable Fixed Assets, which have a fair value of $260,000. The Depreciable Assets have a 10-year remaining life. Sunday sold a piece of Land to Payday for $60,000 on January 1, 2019. It cost Sunday $50,000 to purchase the land from an external party. On January 1, 2020, Sunday held merchandise acquired from Payday for $20,000. This beginning inventory had an applicable gross profit of 40%. During 2020, Payday sold $60,000 worth of merchandise to Sunday. Sunday held $30,000 of this merchandise at December 31, 2020. This ending inventory and an applicable grass profit of 35%. Sunday owed Payday $23,000 on December 31, 2020 as a result of these intercompany sales. On January 1, 2020, Payday held merchandise acquired from Sunday for $10,000. This beginning inventory had an applicable gross profit of 25%. During 2020, Sunday sold $40,000 worth of merchandise to Payday. Payday held $6,000 of this merchandise at December 31, 2020. This ending inventory had an applicable gross profit of 30%. Payday owed Sunday $11,000 on December 31, 2020 as a result of these intercompany sales. Sunday sold bonds on January 1, 2017 with a face value of $50,000. These bonds carry a coupon interest rate of 8% and term to maturity of 5 years. The bonds were issued when the market rate was 9%. When Payday purchased these bonds on January 1, 2019, the market rate was 10%. Both companies use the Effective Interest method to amortize the premium/discount on the bonds. (2) Prepare the Eliminating and Adjusting Entries, the Schedules and Worksheet necessary to produce the consolidated financial statements of Payday Company and its subsidiary for the year ended December 31, 2019