Porter Company purchased 60 percent ownership of Temple 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 Temples book value. On January 1, 20X1, Porter sold $77,000 par value, 8 percent, five-year bonds directly to Temple for $79,000 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 Temple. 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						Temple Corporation
Item	Debit			Credit			Debit			Credit
Cash and Accounts Receivable	$	98,200					$	42,000
Inventory		126,000						67,000
Buildings and Equipment		507,000						319,000
Investment in Temple Corporation Stock		92,400
Investment in Porter Company Bonds								78,200
Cost of Goods Sold		94,800						59,000
Depreciation Expense		22,000						12,000
Interest Expense		5,760						13,760
Dividends Declared		31,000						9,000
Accumulated Depreciation				$	160,000					$	60,000
Accounts Payable					103,560						102,200
Bonds Payable					77,000						190,000
Bond Premium					1,200
Common Stock					182,000						82,000
Retained Earnings					212,000						32,000
Sales					212,000						128,000
Interest Income											5,760
Income from Subsidiary					29,400
Total	$	977,160		$	977,160		$	599,960		$	599,960

Required:

a.	Prepare the journal entry or entries for 20X2 on Porters books related to its investment in Temple. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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.)

c.	Prepare the journal entry or entries for 20X2 on Temples 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.)

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.)

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.)