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 $72,000 par value, 8 percent, five-year bonds directly to Temple for $74,000 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	$	84,200					$	61,000
Inventory		123,000						86,000
Buildings and Equipment		507,000						312,000
Investment in Temple Corporation Stock		109,800
Investment in Porter Company Bonds								73,200
Cost of Goods Sold		86,800						61,000
Depreciation Expense		23,000						13,000
Interest Expense		5,360						13,360
Dividends Declared		39,000						9,000
Accumulated Depreciation				$	175,000					$	75,000
Accounts Payable					61,160						78,200
Bonds Payable					72,000						196,000
Bond Premium					1,200
Common Stock					197,000						97,000
Retained Earnings					227,000						47,000
Sales					216,000						130,000
Interest Income											5,360
Income from Subsidiary					28,800
Total	$	978,160		$	978,160		$	628,560		$	628,560

Required:

a.	Prepare the journal entry or entries for 20X2 on Porters books related to its investment in Temple.

b.	Prepare the journal entry or entries for 20X2 on Porters books related to its bonds payable.

c.

Prepare the journal entry or entries for 20X2 on Temples books related to its investment in Porter's bonds

d.

Prepare the consolidation entries needed to complete a consolidated worksheet for 20X2.

e.	Prepare a three-part consolidated worksheet for 20X2.