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 $80,000 par value, 8 percent, five-year bonds directly to Service when 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:

Item	Porter Company		Service Corporation
	Debit	Credit	Debit	Credit
Cash and Accounts Receivable	$ 81,480		$ 38,720
Inventory	120,000		65,000
Buildings and Equipment	500,000		300,000
Investment in Service Corporation Stock	101,772
Investment in Porter Company Bonds			82,100
Cost of Goods Sold	99,800		61,000
Depreciation Expense	25,000		15,000
Interest Expense	5,790		14,000
Dividends Declared	40,000		10,000
Accumulated Depreciation		$ 175,000		$ 75,000
Accounts Payable		68,800		41,200
Bonds Payable		80,000		200,000
Bond Premium		2,100
Common Stock		200,000		100,000
Retained Earnings		230,068		49,830
Sales		200,000		114,000
Interest Income				5,790
Income from Service Corporation		17,874
Total	$ 973,842	$ 973,842	$ 585,820	$ 585,820

Required:

1. Prepare the journal entry or entries for 20X2 on Porters books related to its investment in Service.
2. Prepare the journal entry or entries for 20X2 on Porters books related to its bonds payable.
3. Prepare the journal entry or entries for 20X2 on Services books related to its investment in Porters bonds.
4. Prepare the consolidation entries needed to complete a consolidated worksheet for 20X2.
5. Prepare a three-part consolidated worksheet for 20X2.