Planet Corporation acquired 90 percent of Saturn Companys voting shares of stock in 20X1. During 20X4, Planet purchased 44,000 Playday doghouses for $20 each and sold 29,000 of them to Saturn for $25 each. Saturn sold 22,000 of the doghouses to retail establishments prior to December 31, 20X4, for $40 each. Both companies use perpetual inventory systems. Required: a. Prepare all journal entries Planet recorded for the purchase of inventory and resale to Saturn Company in 20X4. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

I misstyped the 888,000

b. Prepare the journal entries Saturn recorded for the purchase of inventory and resale to retail establishments in 20X4. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

c. Prepare the worksheet consolidation entry(ies) needed in preparing consolidated financial statements for 20X4 to remove the effects of the intercompany sale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer is complete but not entirely correct. No Event Credit Debit 880,000 A General Journal Inventory Cash (Accounts payable) 1 888,000 B 2 725,000 Cash (Accounts receivable) Sales 725,000 3 580,000 Cost of goods sold Inventory 580,000 b. Prepare the journal entries Saturn recorded for the purchase of inventory and resale to retail establishments in 20X4. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Event Answer is complete but not entirely correct. General Journal Inventory Cash (Accounts payable) Credit Debit 725,000 A A 1 725,000 B 2 1,160,000 Cash (Accounts receivable) Sales 1,160,000 3 725,000 Cost of goods sold Inventory 725,000 c. Prepare the worksheet consolidation entry(ies) needed in preparing consolidated financial statements for 20x4 to remove the effects of the intercompany sale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Answer is not complete. Accounts Credit No A Entry 1 Debit 725,000 Sales Cost of goods sold 725,000 X