Porter Company purchased 60 percent ownership of Service Corporation on January 1, 20X1, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 40 percent of Services book value. On January 1, 20X1, Porter sold $71,000 par value, 8 percent, five-year bonds directly to Service for $73,000 and the market interest rate was 7 percent. The bonds pay interest annually on December 31. Porter uses the fully adjusted equity method in accounting for its ownership of Service. On December 31, 20X2, the trial balances of the two companies are as follows: Note: Assume using straight-line amortization of bond discount or premium.

	Porter Company									Service Corporation
Item	Debit					Credit				Debit				Credit
Cash & Accounts Receivable		$	100,200							$	49,000
Inventory			122,000								74,000
Buildings & Equipment			517,000								308,000
Investment in Service Corporation Stock			94,200
Investment in Porter Company Bonds											72,200
Cost of Goods Sold			98,800								48,000
Depreciation Expense			24,000								14,000
Interest Expense			5,280								13,280
Dividends Declared			39,000								10,000
Accumulated Depreciation						$	172,000							$	72,000
Accounts Payable							121,280								77,200
Bonds Payable							71,000								197,000
Bond Premium							1,200
Common Stock							181,000								81,000
Retained Earnings							211,000								31,000
Sales							210,000								125,000
Interest Income															5,280
Income from Service Corp.							33,000
Total		$	1,000,480			$	1,000,480			$	588,480			$	588,480

Required: a. Prepare the journal entry or entries for 20X2 on Porters books related to its investment in Service. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations. Round your final answers to nearest whole dollar.)

b. Prepare the journal entry or entries for 20X2 on Porters books related to its bonds payable. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations. Round your final answers to nearest whole dollar.)

c. Prepare the journal entry or entries for 20X2 on Services books related to its investment in Porter's bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations. Round your final answers to nearest whole dollar.)

d. Prepare the consolidation entries needed to complete a consolidated worksheet for 20X2. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations. Round your final answers to nearest whole dollar.)

e. Prepare a three-part consolidated worksheet for 20X2. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.)