Punk Corporation purchased 90 percent of Soul Company's voting common shares on January 1, 20X2, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 10 percent of the book value of Soul Company. Punk also purchased $100,000 of 6 percent, five-year bonds directly from Soul on January 1, 20X2, for $104,000. The bonds pay interest annually on December 31. The trial balances of the companies as of December 31, 20X4, are as follows: Item Cash & Receivables Inventory Buildings & Equipment Investment in Soul Company Stock Investment in Soul Company Bonds Cost of Goods Sold Depreciation Expense Interest Expense Dividends Declared Accumulated Depreciation Current Payables Bonds Payable Bond Premium Common Stock Retained Earnings Sales Interest Income Income from Soul Company Stock Total Punk Corporation Soul Company Debit Credit Debit Credit $ 33,000 $ 47,600 180,000 419,000 91,000 256,000 154,800 101,600 69,000 62,800 18,000 13,000 16,000 28,000 5,200 18,000 $ 123,000 $ 63,000 121,200 58,000 200,000 100,000 1,600 120,000 240,000 156,000 80,000 50,000 141,000 5,200 54,000 $1,019,400 $1,019,400 $493,600 $493,600 Required: a. Prepare the journal entry or entries for 20X4 on Punk's books related to its investment in Soul Company stock. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet A B Record the dividends from Soul. Note: Enter debits before credits. Event 1 General Journal Debit Credit View transaction list Journal entry worksheet A B Record the equity-method income. Note: Enter debits before credits. Event 2 General Journal Debit Credit b. Prepare the journal entry or entries for 20X4 on Punk's books related to its investment in Soul Company bonds. (If no entry required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet A Record the entry for the interest income on the bond investment. Note: Enter debits before credits. Event 1 General Journal Debit Credit c. Prepare the journal entry or entries for 20X4 on Soul'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.) View transaction list Journal entry worksheet A Record the entry for interest expense on bond investment. Note: Enter debits before credits. Event 1 General Journal Debit Credit > d. Prepare the consolidation entries needed to complete a consolidated worksheet for 20X4. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Consolidation Worksheet Entries A B Record the basic consolidation entry. Note: Enter debits before credits. Event 1 Accounts Debit Credit > Consolidation Worksheet Entries < A B Record the entry to eliminate the intercompany bond holdings. Note: Enter debits before credits. Event 2 Accounts Debit Credit e. Prepare a three-part consolidated worksheet for 20X4. (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.) Income Statement Sales Interest Income Less: COGS PUNK CORPORATION AND SUBSIDIARY Consolidated Financial Statement Worksheet December 31, 20X4 Consolidation Entries Punk Corp. Soul Company DR CR Consolidated Less: Depreciation Expense Less: Interest Expenses Income from Soul Company Stock Consolidated Net Income 0 0 0 0 0 NCI in Net Income Controlling Interest in Net Income 0 0 0 0 0 Statement of Retained Earnings Beginning Balance Net Income Less: Dividends Declared Ending Balance Balance Sheet Assets 0 0 0 0 0 Cash and Accounts Receivable Inventory Buildings & Equipment Less: Accumulated Depreciation Investment in Soul Company Bonds Investment in Soul Company Stock Total Assets Liabilities & Equity Current Payable Bonds Payable Bond Premium Common Stock Retained Earnings NCI in NA of Soul Company Total Liabilities & Equity 0 0 0 0 0 0 0 0 0