Princeton Products Corporation acquired 90 percent ownership of Stanford Company on October 20, 20X2, through an exchange of voting shares. Princeton Products issued 8,000 shares of its $10 par stock to acquire 27,000 shares of Stanfords $5 par stock. The market value of shares issued by Princeton Products was $247,500. At that date, the fair value of the noncontrolling interest was $27,500. Trial balances of the two companies on December 31, 20X2, are as follows:

	Princeton Products Corporation	Stanford Company
Debit	Credit	Debit	Credit
Cash	$ 85,000		$ 50,000
Accounts Receivable	100,000		60,000
Inventory	150,000		100,000
Buildings and Equipment	400,000		340,000
Investment in Stanford Stock	252,000
Cost of Goods Sold	305,000		145,000
Depreciation Expense	25,000		20,000
Other Expense	14,000		25,000
Dividends Declared	40,000		30,000
Accumulated Depreciation		$ 105,000		$ 65,000
Accounts Payable		40,000		50,000
Taxes Payable		70,000		55,000
Bonds Payable		250,000		100,000
Common Stock		200,000		150,000
Additional Paid-In Capital		167,500
Retained Earnings		135,000		100,000
Sales		390,000		250,000
Income from Stanford Company		13,500
Totals	$ 1,371,000	$ 1,371,000	$ 770,000	$ 770,000

For 20X2, before acquisition, Stanford reported sales of $205,000, cost of goods sold of $126,000, depreciation of $16,000, and other expenses of $18,000. Stanford paid dividends of $20,000 in April and $10,000 in November 20X2. Princeton Products, which paid dividends of $40,000 in 20X2, uses the equity method in accounting for its investment in Stanford.

Required:

1. Prepare the journal entries recorded by Princeton Products during 20X2 that relate to its investment in Stanford.
2. Prepare the worksheet consolidation entries needed on December 31, 20X2, to prepare consolidated financial statements.
3. Prepare a three-part consolidation worksheet as of December 31, 20X2.

Complete this question by entering your answers in the tabs below. Prepare the journal entries recorded by Princeton Products during 20X2 that relate to its investment in Stanford. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Prepare a three-part consolidation worksheet as of December 31,202. Note: 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