Planet Corporation acquired 90 percent of Saturn Company's voting shares in 20x1. During 20x4, Planet purchased 48,000 Playday doghouse for $24 each and sold 33,000 of them to Saturn for $30 each. Saturn sold 26,000 of the doghouses to retail established prior to December 31, 20x4 for $45 each. Both companies use perpetual inventory systems.

Required.

a. Prepare all journal entries Planet recorded for the purchas of inventory and resale to Saturn Company in 20x4.

b. Prepare the journal entries Saturn recorded for the purchase of inventory aand resale to retaail establishment in 20x4.

c. Prepare the worksheet consolidation entries needed in preparing consolidated financial statements for 20x4 to remove the effects of the intercompany sale.