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 $89,000 of 6 percent, five-year bonds directly from Soul on January 1, 20X2, for $93,000. 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 Punk Corporation Debit Soul Company Credit $ 23,000 168,000 Debit $ 37,600 Credit 402,000 87,000 249,000 94,194 90,600 85,000 20,000 15,340 30,000 78,800 15,000 4,540 20,000 $131,000 104,800 $ 71,000 107,340 189,000 89,000 1,600 103,000 Retained Earnings 228,000 Sales 142,000 63,000 33,000 127,000 Interest Income Income from Soul Company Stock Total 4,540 25,794 $928,134 $928,134 $491,940 $491,940 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 \. Required: a. Prepare the journal entry or entries for 20X4 on Punk's books related to its investment in Soul Company sto 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 Record entry Clear entry View general journal > 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 D. Prepare me journal entry or entries 101 2014 UIT PUNK'S DOOKS related to its investment in Sour Company Don 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 the interest income on the bond investment. Note: Enter debits before credits. Event 1 General Journal Debit Credit Record entry Clear entry View general journal > c. Prepare the journal entry or entries for 20X4 on Soul's books related to its bonds payable. (If no entry is requir 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 View general journal Record entry Clear entry for a transaction/event, select "No journal entry required" in the first account field.) view transaction list Consolidation Worksheet Entries A B Record the basic consolidation entry. Note: Enter debits before credits. Event 1 Accounts Debit Credit view transaction list Consolidation Worksheet Entries _A B Record the entry to eliminate the intercompany bond holdings. Note: Enter debits before credits. Event 2 Accounts Debit Credit view consolidation entries Record entry Clear entry e. Prepare a three-part consolidated worksheet for 20X4. (Values in the first two columns (the "parent" an "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adju entries are required, combine all debit entries into one amount and enter this amount in the debit colum worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit colu worksheet.) PUNK CORPORATION AND SUBSIDIARY Consolidated Financial Statement Worksheet December 31, 20X4 Consolidation Entries Punk Corp. Soul Company DR CR Consolidated Income Statement Sales Interest Income Less: COGS Less: Depreciation Expense Less: Interest Expenses Income from Soul Company Stock 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 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