Planet Corporation acquired $90$ percent of Saturn Company's voting shares of

stock in $20$X$1.$ During $20$X$4,$ Planet purchased $40,000$ Playday doghouses for

$$24$ each and sold $25,000$ of them to Saturn for $$30$ each. Saturn sold all of

the doghouses to retail establishments prior to December $31,20x4,$ for $$45$

each. Both companies use perpetual inventory systems.

Required:

a$.$ Prepare the journal entries Planet recorded for the purchase of inventory

and resale to Saturn Company in $20$X$4.$

Record the purchase of inventory

Record the sales of the Playday doghouses.

Record the cost of goods sold.

b$.$ Prepare the journal entries Saturn recorded for the purchase of inventory

and resale to retail establishments in $20$X$4.$

Record the purchase of inventory.

Record the sales of the Playday doghouses.

Record the cost of goods sold.

c$.$ Prepare the worksheet consolidation entry$($ies$)$ needed in preparing

consolidated financial statements for $20$X$4$ to remove all effects of the

intercompany sale.

Record the consolidation entry.Planet Corporation acquired $90$ percent of Saturn Company$$s voting shares of stock in $20$X$1.$ During $20$X$4,$ Planet purchased $40,000$ Playday doghouses for $$24$ each and sold $25,000$ of them to Saturn for $$30$ each. Saturn sold all of the doghouses to retail establishments prior to December $31,20$X$4,$ for $$45$ each. Both companies use perpetual inventory systems.

Required:

a$.$ Prepare the journal entries Planet recorded for the purchase of inventory and resale to Saturn Company in $20$X$4.$

$1.$ Record the purchase of inventory

$2.$ Record the sales of the Playday doghouses.

$3.$ Record the cost of goods sold.

b$.$ Prepare the journal entries Saturn recorded for the purchase of inventory and resale to retail establishments in $20$X$4.$

$1.$ Record the purchase of inventory.

$2.$ Record the sales of the Playday doghouses.

$3.$ Record the cost of goods sold.

c$.$ Prepare the worksheet consolidation entry$($ies$)$ needed in preparing consolidated financial statements for $20$X$4$ to remove all effects of the intercompany sale.

$1.$ Record the consolidation entry.