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 Temple's book value On January 1, 20X1. Porter sold $80,000 par value, 8 percent. five-year bonds directly to Temple 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 Temple On December 31, 20x2, the trial balances of the two companies are as follows Porter Company Temple Corporation Debit| Credit Debit mCredit S 81,480 120,000 500,000 Cash & Accounts Receivable Inventory Buildings Investment in Temple Corporation Stock Investment in Porter Company Bonds Cost of Goods Sold S 38,720 65,000 300,000 82,100 61,000 5,000 14,000 10,000 99,800 25,000 5,790 40,000 Depreciation Expense Interest Expense Dividends Declared 40 00 $ 175.000 s 75.000 Accumulated Depreciation 68,800 80,000 2.100 200,000 230,068 200,000 41.200 200,000 Accounts Payable Bonds Payable Bond Premium Common Stock 100,000 49.830 Retained Earnings Sales Interest Income Income from Temple Corp 114,000 5,790 17.874 $973,842 $973,842 $585,820 $585,820 Total uired: Prepare the journal entry or entries for 20X2 on Porters books related to its investment in Temple. (If no entry is required for a transactionlevent, select "No journal entry required" in the first account field. Do not round your intermediate calculations. Round your final answers to nearest whole dollar.) Answer is complete and correct. General Journal 6,000 Cash 6,000 Investment in Temple Corporation 17.874 0 Investment in Temple Corporation 17 874 Income from Temple Corporation b. Prepare the journal entry or entries for 20X2 on Porter's 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.) Answer is not complete. Credit Debit General Journal Event No 5,790 Interest expense Bond premium Cash c. Prepare the journal entry or entries for 20X2 on Temple's books related to its investment in Porters 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.) Answer is not complete. Debit Credit General Journal Event Cash 5,790 Interest income Investment in Porter Company bonds d. Prepare the consolidation entries needed to complete a consolidated worksheet for 20X2. (f no entry is required for a transaction!event, selectNo journal entry required" in the first account field. Do not round your intermediate calculations. Round your final answers to nearest whole dollar.) 8 Answer is not complete. No Event Accounts Debit Credit 100,000 01 498300 17,874 11.916 Common stock Retained earnings Income from Temple Company NCI in NI of Temple Company 10,000 Dividends declared 101,772 67,848 Investment in Temple Company entis int one amount and enter this amount in the credit column of the worksheet.) 3 Answer is not complete. PORTER COMPANY AND SUBSIDIARY Consolidated Financial Statement Worksheet December 31, 20X2 Consolidation Entries Porter emple DR CR Consolidated Income Statement Sales Interest Income Less: COGS Less: Depreciation Expense Less: Interest Expenses Income from Temple Co. Consolidated Net Income NCI in Net Income Controlling Interest in Net Income Statement of Retained Earnings Beginning Balance Net Income Less: Dividends Declared Ending Balance Balance Sheet Assets Cash and Accounts Receivable Inventory Buildings & Equipment Investment in Porter Co. Bonds Investment in Temple Co Total Assets Liabilities & Equity Accounts Payable Bonds Payable Bond Premium Common Stock Retained Earnings NCI in NA of Temple Co Total Liabilities & Equity