Please assist me with these problems, I wish I could award you more than 1500 points but this the mzx the system allows. Intercompany Bond Holdings at par 90% owned Subsidiary

Balance sheets for P Company and S Company on August 1, 2011, are as follows.

P. Company S Company

Cash $165,500 $106,000

Receivables 366,000 126,000

Inventory 61,000 108,000

Investment in Bond 306,000 -0-

Investment in S Company stock 586,500 - 0 -

Plant and Equipment (net) 573,000 320,000

Land 200,000 960,000

Total $2,458,000 $ 960,000

Account payable $174,000 $58,000

Accrued Expenses 32,400 26,000

Bonds payable 8% - 0- - 0-

Common stock 1,500,000 460,000

Other Contributed capital 260,000 60,000

Retained 461,600 156,000 TOTAL $2,458,000 $960,000

REQUIRED

Prepare a work paper for consolidated balance for P Company and its Subsidiary on August 1, 2011 taking into consideration the following.

1. P Company acquired 90% of the outstanding common stock of S company on August 1, 2011 for cash payment of $586,500.

2. Included in the investment in Bonds account is $40,000 par value of S Company bonds payable that were purchased at par by P Company in 2002. The bonds pay interest on April 30, and October 31. S Company has appropriately accrued interest expense on August 1, 2011; P Company, however; inadvertently failed to accrue interest income on the S company bonds.